Dollar General, led by CEO Jeff Owen, is arguably the best-positioned retailer for growth out of any other retailer in the world. The company currently operates more than 19,000 stores in 47 states and generated $37.8B in revenue in 2022. The company is rapidly expanding. On top of the $1.6 billion in capital investments last year, Dollar General plans to spend another $1.8 billion to $1.9 billion on 3,170 real estate projects in 2023, including 1,050 new store openings, 2,000 remodels, and 120 store relocations.
Dollar General is similar to the company X5 Group which operates nearly 22,000 grocery stores throughout Russia. I encourage Dollar General to assess the Pyaterochka stores operated by X5 Group as they have a very inviting and profitable format. Dollar General has recognized the value of selling fresh groceries to consumers, and the company operates 2,700 DG Market stores. Fresh food is a massive opportunity for the company.
Dollar General opened their first store in Mexico called Mi Super Dollar General. I believe Mexico and Latin America are strategic to the future of the company. It’s conceivable that Dollar General can open 10,000 to 15,000 stores over the next 10 to 15 years, if not more, throughout Latin America. Acquiring Waldos Dolar Mart Co. should be explored.
I encourage Dollar General to explore an acquisition of the company Swift that operates over 500 retail stores that sell frozen meat, vegetables, desserts, and beer. Swift is owned by JBS Argentina SA. JBS operates a similar retail model in the U.S. under the brand name Wild Fork.
Another interesting acquisition or partnership opportunity is Mercado Libre which is the largest online retailer in Latin America.
Opportunities for expanding into Africa should be explored.
It’s conceivable that Dollar General can expand their store count to 50,000 or more stores globally. In order for this happen, Dollar General must first greatly modernize their supply chain. I’ve stated many times on LinkedIn that the purpose of a supply chain is to do one thing – enable growth. Dollar General is wisely investing heavily in its supply chain strategy, and I have confidence in Tony Zuazo and Wes Whalberg.
Steve Sunderland should contact Mark Edwards, the founder of 345 Global, and discuss 345’s AI platform for store planning. A digital twin strategy for Dollar General would prove valuable to improving operations.
Dollar General must utilize a strategy that negates the advantages of entrenched retailers. I strongly encourage a partnership with Uber to take advantage of Uber’s best-in-class grocery platform and food delivery capabilities.
Dollar General should explore a partnership with Temu to introduce a marketplace for their customers.
A partnership with Epallet, Inc. for bulk sales would be interesting.
Dollar General can rule the world.
