Dollar General on the Horizon
Dollar General, which is majority owned by private equity firm Kohlberg Kravis Roberts & Co.(NYSE:KKR), has plans to continue its aggressive expansion plans. It will open 600 new stores and remodel another 500 in 2010. Not only has its business not yet proved to be vulnerable during the recession, but it has steadily grown. Also, the concern of declining comparable sales may be offset by the rising trend in July sales mentioned by the company. The critics ignore as a potential lasting shift the achievement of greater customer traffic by Dollar General and the other dollar stores. Our thesis has been that these additional customers may prove to be more permanent.
Dollar Days Not Over
Dollar General should continue to do well as the economy limps along. We expect it to do well also when the economy strengthens. The stock is trading near its 52-week high right now, but this is a stock to monitor and consider for purchase on a share price drop. (For more stock analysis, check out Family Dollar Stores Still Thriving.)
http://stocks.investopedia.com/stock-analysis/2010/Dollar-Generals-Strong-Growth-Continues-DG-FDO-NDN-DLTR-SHLD-0903.aspx?partner=YahooSA
They are accessible I can say that and convenient for people in small towns. They've found their niche and it's paying off.
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