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.
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Family Dollar
Dollar Tree’s Family Dollar Gamble is Paying Off
Dollar Tree is in a little better shape, but it will still need several quarters of revenue growth to approach stability. The limited amount of float it carries; puts Dollar Tree in a vulnerable position in a rapidly changing retail environment.
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Dollar Tree and Family Dollar One Year Later: How are they doing?
Incomes for Dollar Tree’s target market, the lower class, fell even more. Pew reported that the average lower class household made $26,496 a year in 2000 and $24,074 in 2014. That is a $2,422 drop in income, meaning that the average lower-class household’s income has fallen by 10% in 15 years.
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Walmart Reveals Some Intriguing Online Capabilities
Walmart is now one of the leaders in the world of ecommerce. Its cutting edge capabilities make it a company to watch.
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Kroger Is Winning the Grocery Wars
Safeway and Albertsons currently have around 2,230 stores—almost as many as Kroger—but they had combined revenues of $60 billion in 2014, The San Francisco Chronicle reported. In contrast, Kroger, which operates 2,619 supermarkets, reported a TTM revenue of $108.47 billion on January 31, 2015. Kroger’s TTM revenue grew by 8.55% in 2015.
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CVS Health Has a Lot to Prove
My prediction is that CVS’s revenue will continue to grow but none of its competitors will follow its lead and go tobacco free. Instead, CVS will be something of an anomaly, which will buy it a lot of good publicity and support from the healthcare industry.
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My Impressions of Walmart Neighborhood Market
Walmart has figured out how to make a successful small box format. Companies like Dollar Tree Stores (NASDAQ: DLTR) and Dollar General (NYSE: DG) as well as regional grocers had better take notice. Walmart has proven itself capable of producing a better small box store.
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Steps Government Could Take to Reduce Income Inequality
• Abolish the payroll or withholding taxes, which take a percentage of a person’s salary. These hit the working poor heavily, and they do not raise enough money to cover the costs of programs like Social Security and Medicare.
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Walmart Feels the Heat
Walmart is no longer on the cutting edge of retail; it cannot even compete with bottom-feeding dollar stores. The Behemoth from Bentonville still makes a lot of money; it just cannot attract any new customers. What is going on here?
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Who Else Would Acquire Rite Aid?
Yes it is a bit of a dark horse, but Rite Aid does meet some of Warren Buffett’s value criteria: it is a good company that has been going through a rough patch yet still has the potential to generate a lot of cash. It also has an easy-to-understand business model in a decidedly unglamorous industry—selling shaving cream and prescriptions. Rite Aid also meets another one of Uncle Warren’s classic criteria: it is a company that an idiot could run if necessary.
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