I think Dollar Tree could collapse because many of its customers could have no money because of the Coronavirus Depression. For instance, Statista estimates 10.74 million Americans were unemployed in November 2020. That number rose from 5.81 million in November 2019 and fell from 23.08 million in April 2020.Read more
Dollar General has enormous numbers of new customers, including the 55 million Americans who have filed for unemployment since March 2020. Thus, Dollar General bases its success on ordinary Americans’ misery.Read more
Under these circumstances, it is easy to how Dollar General grew to over 15,000 stores in 44 states. A shrinking middle class and wage stagnation keep creating more customers for Dollar General (DG).
Interestingly, Mr. Market likes Dollar General’s ethically questionable business model. For instance, Dollar General Corp (NYSE: DG) shares were trading at $98.85 on 24 December 2018.Read more