Thursday, October 21, 2010
Very Interesting
I just discovered an article that got my attention written by Lynn Cowan at Dow Jones and published in the Wall Street Journal. Titled "Investors Flock to Dollar General, Rue 21. I had never seen any article that lumped these two together and since I have been working with Brittni and she was blogging Rue 21 it only sparked more interest. The comparison is strange and said that both companies are plays on nervous consumers, producing strong sales growth throughout the worst of the recession as shoppers shifted their spending to discount stores. Take a look. http://online.wsj.com/article/SB10001424052748703683804574532551434723442.html
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I wonder when (maybe if) the economy improves, where will it leave these discount retailers that are doing so well in the recession?
ReplyDeleteIt is interesting that these two companies would be linked. I wouldn't think that Dollar General had a very large market share of the apparel industry. Just guessing, but isn't that one of its smaller cash generators?
ReplyDeleteRue 21 on the other hand is almost strictly all apparel. They do target the lower priced market though. In contrast, I think the DG consumer is broader. They used to only attract the low income customer, but now they are getting the Walmart-resistant crowd. Let's face it; in some areas, that is the only 2 choices.