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Poor People Cited As Dollar General Plunges Most Ever
Poor people get blamed a lot for a lot in America. Including for their own poorness, which always seems gratuitous, even in the rare cases where it's true.
On Thursday, America's multitudinous "poors" took part of the blame for exceedingly poor results from Dollar General, which missed estimates and delivered a God-awful full-year comps guide.
For 2024, same store sales will rise 1.6% at most, the company said. Previously, the lower-end of the range was +2%. Same store sales rose just 0.5% in
DG saw +ve comps only in consumables (i.e. necessities). Weakest comps were in last week of each month (i.e. customers ran out of money for necessities). DG’s core customer makes <$35K/yr (i.e. low-income, close to poverty level).
In past downcycles, dollar stores outperformed because some low-mid and mid-income shoppers traded down to where low-income shoppers were. I think broad retailers like WMT TGT have gotten better at value offerings. As DG has grown, possibly more stores are in run-down areas where there are only low-income shoppers. This downcycle is in the earliest innings, low-mid and mid-income remain employed hence are not yet driven to dollar stores. We’re merely in the stage where JWN’s full-price shoppers are considering Nordstrom private label apparel and whether they should check out the Rack stores.
I don’t understand the rationale for high-end department store private label clothes. It’s always boggled my mind that someone who previously bought high-end name brands would go for the store brand at their favorite high-end department store instead of just saying “Oh, well, tough times, I’m going to Banana Republic. I’ll come back to Burberry next cycle.” Especially considering some of / a lot of those private label store brands are made in China. Now that you mention it, a lot of Burberry is made in China these days, which is highly disappointing, but that’s another conversation.
Actually, both dollar store chains are mostly concentrated in rural areas where they are the only nearby choice. Yes, often poorer places, but, often as not, populated by nice white people = the MAGA base. Thanks to the elimination of poll taxes and reading tests, their vote counts as much as yours in November.
I caught the irony of your last sentence there derek. It’s a fine line you’re walking, but that was funny.
Agreed, it was funny.
Seems that the main problem at DG is that they don’t sell food, shelter or gas.
Without appearing argumentative, there are now DG Market stores where it does sell grocery. Not as common as the traditional DG stores.
Maybe now a lot of people can afford to shop in ordinary stores.