[Marxism] Fwd: How Dollar General Became Rural America's Store of Choice

[Michael Yates via Marxism]

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We began to see this in our travels across the US quite a few years ago. Dollar 
General stores have been proliferating in small towns everywhere. You know when 
you see one that people in the area are close to the margin economically. And 
you see too the relentless capital accumulation that drives the system.
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[Marxism] Fwd: How Dollar General Became Rural America's Store of Choice

[Louis Proyect via Marxism]

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While many large retailers are closing locations, Dollar General 
executives said they planned to build thousands more stores, mostly in 
small communities that have otherwise shown few signs of the U.S. 
economic recovery.


The more the rural U.S. struggles, company officials said, the more 
places Dollar General has found to prosper. "The economy is continuing 
to create more of our core customer," Chief Executive Todd Vasos said in 
an interview at the company's Goodlettsville, Tenn., headquarters.


"We are putting stores today [in areas] that perhaps five years ago were 
just on the cusp of probably not being our demographic," he said, "and 
it has now turned to being our demographic."


Dollar General's target shoppers come from households earning $40,000 or 
less. Its primary competitor, Dollar Tree Inc., has more suburban 
locations and sells all items for $1, including unbranded knickknacks 
that attract shoppers browsing for fun. In 2015, Dollar Tree bought 
another competing low-price chain, Family Dollar Stores Inc. which has 
more urban locations.


This lower-end market is better protected from Amazon and competitors 
that target wealthier shoppers, company executives and analysts said.


Dollar General's typical shopper "doesn't look at her pantry or her 
refrigerator and say, 'You know, I'm going to be out of ketchup in the 
next few days. I'm going to order a few bottles,'" said Mr. Vasos, the 
company's chief executive. "The core customer uses the last bit of 
ketchup at the table the night prior, and either on her way to work or 
on her way home picks up one bottle."


full: 
http://news.morningstar.com/all/dow-jones/us-markets/201712045232/how-dollar-general-became-rural-americas-store-of-choice.aspx

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