retail news in context, analysis with attitude

NBC News has a story about the irony of the fact that "thousands of retail stores are on track to close by the end of the year as consumers embrace online shopping," while at the same time Dollar General will "open 975 stores this year, and 1,000 by the end of 2020 — or 20 stores each week. That's in addition to the more than 16,000 locations it already has, which is more than McDonald’s in the U.S. and more than Walmart globally."

Some context from the NBC News story:

"The stores are strictly "no-frills," stocked with only the most popular consumer brands. The company has also rolled out a line of private label products, which allows it to control manufacturing and price. It is able to offer such cheap prices in part because items are sold in smaller packaging, which means that shoppers may be paying more per ounce compared to full-size products.

"Dollar General's competitive edge goes beyond what it stocks on a shelf. The company is also expanding its fleet of carrier trucks from 80 to 200, and plans to bring FedEx drop-off and collections to more than half of its stores by the end of 2020. There is also a Dollar General app, which enables customers to scan their items and check out on their phone, reducing in-store wait time and minimizing the number of workers required. In some stores, customers can also use the app to calculate the cost of their cart before they check out at the register.

"These developments have Wall Street analysts and shareholders optimistic about how the company will grow, even — or perhaps especially — in a recession."
KC's View:
A recession is gonna come … and when it does, retailers like Dollar General and WinCo and other value-driven formats are going to be well-positioned.