The Birth and Death of the Traditional Retail Experience
Last week online retailer Amazon closed above $1000 a share for the first time in its history as Americans more and more become accustomed to the convenience of shopping at home and having a package show up at their door two days later.
More than a few people have described the experience as a “Christmas every day” phenomenon where boxes filled with items they had forgotten they had ordered appear on their doorsteps day after day.
Amidst this new shopping experience, brick-and-mortar store chains by the dozens have sunk into bankruptcy as consumers no longer walk their aisles.
But from the wreckage of retail, one firm has emerged by managing to grow, not shrink, and prosper, not wilt: Dollar General.
Dollar General has not only survived but is also seeing amazing growth.
According to Bank of America data, of the nearly 7,800 net new stores opened since 2008, a whopping 76% or 5,936 were Dollar General stores! Catering to the unglamorous low end of retail has been exactly the right thing to do.
This is by no means any kind of endorsement of the stock of Dollar General (DG). Do your own research if you think it might be interesting. It’s been my experience that the company and the stock of the company do not always move in lockstep.
Great company – crappy stock! Or the other way around.
I also think it’s interesting that Amazon opened a brick and mortar bookstore in Seattle a year or so ago.