AllAnalyst Report
logoMorningstarSeptember 01, 2020

Dollar General Corporation: Sales Surge Will Ebb as the Pandemic Eases, but Dollar General’s Advantaged Position Should Remain

Symbols
DG
Sector(s)
Consumer Defensive
Rating
Premium
Current Price
$212.22
Fair Value
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Economic Moat
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Stewardship
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Summary

A leading American discount retailer, Dollar General operates over 16,000 stores in 45 states, selling branded and private-label products across a wide variety of categories. In fiscal 2019, 78% of net sales came from consumables (including paper and cleaning products, packaged and perishable food, tobacco, and health and beauty items), 12% from seasonal merchandise (such as toys, greeting cards, decorations, and gardening supplies), 6% from home products (for example, kitchen supplies, small appliances, and cookware), and 4% from basic apparel. Stores average roughly 7,400 square feet, and about 75% of Dollar General locations are in towns of 20,000 or fewer people. The firm emphasizes value, with more than 80% of its items sold at $5 or less, mostly using an everyday-low-price strategy.

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