The Ever Growing List of Doomed Retailers

Expect to see a mass die-off of sick retailers in January and February of 2018 as the dust from the 2017 holiday season settles. If it is anything like last year’s numerous retailers are likely to report losses and more than a few will shut down.

Read more

Dollar General is Bigger than Sears

A milestone has been reached in the world of American retail; Dollar General’s (NYSE: DG) sales are greater than those of Sears Holdings (NASDAQ: SHLD).

Read more

Ten Threats to Dollar General (and Dollar Tree)

The conventional wisdom is that Dollar General is “Amazon Proof,” but conventional wisdom is often dead wrong about the Everything Store.

Read more

Dollar Store Wars Heat Up

Despite that Dollar Tree’s revenues are still growing, they went from $18.41 billion in April 2016 to $20.92 billion in April 2017. That made for an increase of $2.51 billion but most of that growth can be attributed to the Family Dollar acquisition.

Read more

Will Rite Aid Survive without Walgreens?

Between February 2016 and February 2017, Rite Aid’s revenues increased by $2.11 billion. The revenues rose from $30.74 billion in 2016 to $32.85 billion in 2017. There’s a lot of cash flowing through Rite Aid that might make somebody a lot of money if he can figure out how to capture it.

Read more

Will Big Lots Survive?

One thing is for certain, Big Lots was definitely overvalued at the $49.16 a share it was fetching on March 30, 2017. Nothing in its earnings report or holdings warrants that. Not even the 25¢ dividend which shareholders received on March 15, 2017. Stay away from Big Lots, it is overpriced and exposed to dangerous competitors that will soon destroy its business.

Read more

Dollar Tree at the Limits of Growth

This means that like many discounters, Dollar Tree operates fairly close to the death spiral. That is too close for my tastes because it had just $870.4 million in cash and short-term investments at the end of the last quarter.

Read more

Has Dollar Tree’s Growth Peaked?

Revenue growth has peaked at this retailer; making both its stock price and current business are unsustainable. Expect to see a major contraction in both share prices and footprints in the dollar store segment with DLTR leading the way. We’ve reached peak dollar store, so the collapse is about to begin.

Read more

Is Dollar General’s Growth Sustainable?

Walmart’s online discounting is undercutting Dollar General’s prices and competing directly for rural customers. The recent acquisition of Jet.com gives Walmart even greater online discounting capabilities. Much of Dollar General’s success is in offering convenient local stores in small towns where there is no Walmart. Now Walmart can serve those customers without building a store. This should really worry DG investors because the National Retail Federation reported that more Americans shopped online than instore on Black Friday.

Read more

Sears it’s Worse than We Thought

The revenue shrinkage at Sears is incredible, if it keeps up the retail icon might soon be smaller than dollar stores and rival department store operators.

Read more