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Dollar General Corp DG Stock Quote

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Morningstar‘s Stock Analysis DG

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Is it the right time to buy or sell?

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Economic Moat

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With Clean Inventory and a Value Orientation, Dollar General Should Be Poised for Success

Zain Akbari, CFA Equity Analyst

Business Strategy and Outlook

| Zain Akbari, CFA |

Despite intensifying competition that we believe is diminishing its competitive edge, Dollar General's advantageously located store network, low-priced items, and leverageable supply and distribution capabilities should allow it to deliver economic returns. With a footprint focused on thinly populated areas that cannot support numerous retailers and make shipments to homes costly for a small basket (over 80% of items are priced at or below $5), we expect Dollar General to use its burgeoning scale and proximity to customers to economically deliver the convenience and affordability that its generally modest-income (roughly $40,000 annually, as a household) customers demand. The COVID-19 pandemic lifted sales, but we do not expect it to have a material long-term effect on the chain’s standing.

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Key Statistics DG

Company Profile DG

Business Description

A leading American discount retailer, Dollar General operates over 18,000 stores in 47 states, selling branded and private-label products across a wide variety of categories. In fiscal 2021, 77% of net sales came from consumables (including paper and cleaning products, packaged and perishable food, tobacco, and health and beauty items), 12% from seasonal merchandise (such as toys, greeting cards, decorations, and gardening supplies), 7% from home products (for example, kitchen supplies, small appliances, and cookware), and 4% from basic apparel. Stores average roughly 7,400 square feet, and about 75% of Dollar General locations are in towns of 20,000 or fewer people. The firm emphasizes value, with most of its items sold at everyday low prices of $5 or less.

Contact
100 Mission Ridge
Goodlettsville, TN, 37072
T +1 615 855-4000
Industry Discount Stores
Most Recent Earnings Jul 31, 2022
Fiscal Year End Jan 28, 2023
Employees 163,000

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