Dollar General SWOT and PESTLE Analysis

ID : 52675353| Feb 2023| 20 pages

COMPANY PROFILE -Dollar General

Business Sector :Retail, Discount Retailer

Operating Geography :United States

About Dollar General :

Dollar General Corporation is an American chain of retail stores selling consumables, seasonal items, home products and apparel. Dollar General’s headquarters are located in Goodlettsville, Tennessee. The variety stores foster cozy shopping options for daily needs offering a carefully curated assortment of popular brands at attractively discounted prices. As of April 2020, Dollar General employs over 1,35,000 people and runs over 16,000 stores in 46 states across the United States. Dollar General’s various subsidiaries include Dolgencorp, Dollar General Global Sourcing and Dollar General Literary Foundation. The company was formerly recognized as J.L Turner & Son and later converted their name to Dollar General Corporation in 1968. Dollar General was established in 1939, family-owned by two brothers with an initial investment of $5000 each. After years of perseverance, its annual revenue now amounts to almost $23.5B annually. Fortune 500 acknowledged Dollar General in 1999 and recently in 2020, the Company reached 112th position. Dollar General is among the largest discount retailers in the United States by the number of stores. The company runs on a simple business model aiming to provide a wide base of customers with their essentials, every day and household needs, enhanced with a variety of general commodities, at low prices, in easily accessible locations.
Dollar General sells a wide range of products from some of America’s most-trusted brands such as Clorox, Energizer, Procter & Gamble, Hanes, Coca-Cola, Mars, Unilever, Nestlé, Kimberly-Clark, Kellogg’s, General Mills, and PepsiCo. Additionally, the company stocks high-quality private brands to equip customers with more options to purchase products at tangible discounts. Dollar General's private brands incorporate Clover Valley®, Good & Smart®, true living®, DG Home®, Gentle Steps®, Studio Selection™, DG Health®, DG Office®, Comfort Bay®, Bobbie Brooks®, Smart and Simple® and more. In March, 2020, Dollar general celebrated the opening of its first store in Pine Bluffs, Wyoming, extending its national presence.
Dollar General Corp.’s unique selling proposition or USP lies in being the largest small-box discount retailer in the United States. It also ranks among the largest retailers of top-quality brands made by America’s most trusted manufacturers. Dollar General’s mission statement reads “Serving others; by placing our customers at the center of what we do, working every day to deliver value and convenience.”

Dollar General Revenue :

US$ 27.8 billion – FY ending Jan 31st, 2020
US$ 25.6 billion – FY ending Feb 1st, 2019

Competitive Analysis of Dollar General

SWOT

PESTLE

Conveniently located stores, quality brands, wide range of general commodities, and low prices are the core competencies of the Dollar General, also presenting the company with a competitive advantage over its peers. Dollar General's business model is driven by its motto "Save time. Save money. Every day", which focuses on endeavoring its customers with a convenient and easy buying experience. Dollar general's biggest strength is its huge, diverse, frequently used and every-day-based product line. Under the parasol of America's most trusted brands and Dollar General's quality private brands, the portfolio includes everyday products such as food, snacks, health and beauty aids, cleaning supplies, basic apparel, housewares, and seasonal items at reasonable prices in nearby neighborhoods. Furthermore, the SWOT report substantiates a discussion on all the internal and external factors and their impacts on the company's micro and macro environment. Precisely the SWOT analysis is a structure, utilized to evaluate Dollar general's competitive position by identifying its internal and external strategic factors like strengths, weaknesses, opportunities, and threats respectively.
Besides its diversified product portfolio, strengths like a strong foothold in the US, strong employee base, DG-label as a well-known private brand for low-priced goods, brand publicity through word-of-mouth, sponsorship of motorsports, exclusive retailer for Rexall (pharmaceutical drug store) products, renowned for its goods at discounted prices, etc. are success factors and growth drivers of Dollar General corporation.
Lack of global penetration compared to its competitors is one of the key weaknesses of Dollar General. However, to overcome this weakness Dollar General could tap on the opportunity of entering international markets, particularly the emerging economies.
Dollar General focuses on capturing growth opportunities via its high-return, low-risk real estate growth model. For the year 2020, the company intends to open nearly 1,000 brand-new stores, refurbish 1,500 older stores and relocate 80 stores and seek the opportunity to serve both novel and existing consumers across the nation. Dollar general faces stringent competition threats from its top competitors like Target Corporation, Walmart, Costco Wholesale.
The SWOT analysis for Dollar General is presented below in a matrix followed by the detailed analysis report:

Strengths	Weaknesses
1. Same-store sales growth for 30 consecutive years 2. Established position as a low-cost operator 3. One of the largest discount retailers spread widely across the United States 4. Everyday low prices for national and private brands. 5. Successful in leveraging economies of scale	1. Penalty and reputation damage for selling expired items 2. Offering mostly processed packaged foods with limited options of fresh produce
Opportunities	Threats
1. Investment in employees to gain competitive advantage 2. Growth in their low risk real estate model 3. Partnership with FedEx to increase customer footfall 4. Expanding into more states by opening more stores 5. Expansion in private label categories	1. Highly competitive discount consumer goods market. 2. Effect of Covid-19 to defer imported merchandise from China 3. Legislations against predatory proliferation of dollar stores

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Detailed SWOT Analysis of Dollar General

Strength

1. Same-store sales growth for 30 consecutive years. In 2019, Dollar General achieved 30th consecutive year of positive same-store sales growth. This growth is mainly due to the compelling value that Dollar General provides to the customers. Also, the convenience proposition that Dollar General provides due to stores available to the customers at their location has helped it achieve this. Continuous evaluation of needs and demands of the customers helps it to gauge the customer needs properly in a timely manner and then Dollar General modifies the merchandise selections and pricing accordingly. Delivering highly competitive prices in convenient locations helps Dollar General create a unique shopping experience for the customers which provides them enough value to continue with Dollar General and helps in customer retention.

2. Established position as a low-cost operator: Dollar General, which enjoys the next-door store image is expanding rapidly in the United States by capitalizing towards cost-conscious shopping. It guarantees everyday low price which are lower than other grocery and drug stores. There are various factors that help in keeping the price low. It mainly operates in rural and suburban areas where operation cost is less. It carries the popular brands and hence the limited selection of products gives it more bargaining power with suppliers from whom it buys in bulk. Having fewer products in stock also helps in keeping the labor costs down. It also has limited stocks of fresh produce which helps in having strong margins.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.

Weakness

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Opportunity

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Threats

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The retail market for essential goods has been one of the least affected industries even during an economic crisis. The global pandemic like COVID-19 has left devastating trails on almost all industries, but the damage is not gross for the sectors serving essential goods and services. Some of the current trends in the retail industry in 2020 are as follows:
• Advancements in technology like AI, AR, Blockchain, Big Data etc
• Social transformation leading to changes in buying preferences
• Increasing demand for physical stores despite digital transformation
• Growing sales of private label products compared to branded ones due to their quality and affordability
• Online marketing via social media platforms is gaining huge traction
Here is a review of other external influencers like political, economic, social, technological, legal, and environmental, their impression on the retail industry, and largely on Dollar General Corporation. The PESTLE / STEEPL / PEST analysis report is a structure to examine the consequence of external factors on the macro-environment that influences the business of Dollar General. The PESTLE analysis is a useful technique to study the impact of influencers on Dollar General’s business model, growth trajectory, its business case, and market strategy.
Dollar General encounters political and legal factors that are beyond its control and have an adverse effect on its business and economic performance. The US-CHINA trade wars, The United States’ foreign trade policies, duties, tariffs, impositions on imported goods, restrictions imposed on trade with certain countries, etc. have huge impact on Dollar General’s business operations and financial condition. Dollar General largely targets middle-class families with fixed or low incomes, thus any economic crisis will lead to a reduction in their customers' spending ability eventually decreasing sales and profitability of the company. Driven by its mission of "serving others", Dollar General's corporate and social responsibility program aims at creating career opportunities for employees, encouraging their vendors to provide safe, reliable and environmentally friendly products, and executing charitable efforts for the welfare of communities.
The PESTLE / STEEPL / PEST analysis for Dollar General is presented below in a table followed by the detailed analysis report:

Political	Economical
1. Trade tensions between United States and China	1. Impact of change in disposable income of the customers
Social	Technological
1. Focus on vastly underserved markets 2. Local societal impact of dollar stores in small towns 3. Increasing acceptance of private labels	1. Using cutting edge digital technology. 2. Technology driven supply chain network
Legal	Environmental
1.Legislations and backlash against dollar stores. 2.Compliance with privacy laws to maintain security 3.Laws related to product liability, product recall and product safety	1. Sustainable and business friendly practices to reduce environmental impact 2. Adopted first safer chemical policy to ban 8 chemicals

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This report contains the table contents only. In case you need the complete report please purchase using the buy options displayed.

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SWOT & PESTLE (combined)
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Detailed Pestle Analysis of Dollar General

Political

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Economic

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Social

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Technological

1. Using cutting edge digital technology to enhance customer experience:Digital technology is transforming sectors and retail industry is no exception. Customer experience is one area where retailers have effectively used digital technologies. Even though people don’t think of digital technology being much associated with Dollar General selling consumable in its small stores, the discount chain has been working to change this notion. In 2018 it launched its DG GO app. This app allows customers to scan items on their phones while they shop, totals it and even allows the customers to checkout using an in-store DG GO! Kiosk. The popularity of the app among its customers is very high with more than 140,000 downloads in 2018. It has around 25000 monthly active users despite DG GO! Kiosks in only 250 stores. These efforts make shopping even easier for the customers in Dollar General stores providing them the convenience. The American retail chain is also working towards making it possible for the customers to order online and pick it up from the stores. This would help in increasing customer satisfaction and would help Dollar General in the long run.

2. Technology driven supply chain network: For any store to succeed it is very important to have a healthy retail supply chain. Technology can be used to track products and would help in achieving an optimal inventory level. By using AI across various retail modules, data sets of different departments which are working in silos can be then integrated. The various departments could be order management, inventory management, warehouse management or even logistics. Dollar General has a clear focus of ensuring that the products which are needed by consumers are available at the right time consistently. So, its teams, through investments in emerging technology like artificial intelligence and platforms can support business management functions efficiently

Legal

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Environmental

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Major Competitors :

Dollar Tree
Aldi
Target
Lidl
Family Dollar
Walmart
Big Lots
99 Cents only

Major Brands :

Clover Valley
true living
DG Home
DG Baby
DG Health
DG Office
Comfort Baby
Bobbie Brooks
Smart and Simple

Sample Complete Report

This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase.

Free Summary Report

This report contains the table contents only. In case you need the complete report please purchase using the buy options displayed.

* By clicking on "Buy Now" you agree to accept our "Terms and Conditions."

SWOT & PESTLE (combined)
Complete Report
USD 14.53

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Safe and secure payments

On purchase the Dollar General SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.

WHY BUY THIS REPORT?

DELIVERY AND FORMAT

WHY CHOOSE US?

1. The Dollar General Corporation's SWOT and PESTLE analysis report consists of a comprehensive analysis of all major pertinent internal and external factors shaping the brand and its operations.
2. The SWOT analysis report incorporates internal and external analysis. Internal analysis substantiates Dollar General’s strengths and weaknesses, whereas the external analysis helps to acknowledge the opportunities for improvement and threats that can restrain growth.
3. The PESTLE / STEEPL / PEST report highlights the current trends in the retail sector with a precise depiction of macro factors and its reverberations on the industry and largely on the Dollar General Corporation.
4. The PESTLE analysis helps in identifying the impact on Dollar General's business model by influencers like political, economic, social, technological, legal and environmental factors
5. Scanning through the lens on acquisitions, capital raising, equity transactions, alliances or partnership ventures, deal valuations, and the synergies achieved by this retail behemoth.
6. Studying the latest mission statement and vision statement followed by its Unique Selling Proposition or USP that makes Dollar General Corporation one of the leading American chain of variety stores
7. Examining the Dollar General's business model and business diversification, with further categorization and analysis of key business segments and business case study.
8. Crisp synopsis of the Dollar General core competencies that strengthened and added a competitive advantage to the company over its major competitors from the Retail Industry.
9. Overall company analysis to infer information about company profile, business model, business plans and marketing strategy
10. Classifying the core values, key performance indicators, and success factors that contributed to sustainable growth and proliferation.

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Dollar General

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Dollar General SWOT and PESTLE Analysis

COMPANY PROFILE -Dollar General

Business Sector :Retail, Discount Retailer

Operating Geography :United States

About Dollar General :

Dollar General Revenue :

Competitive Analysis of Dollar General

Detailed SWOT Analysis of Dollar General

Strength

Weakness

Opportunity

Threats

Detailed Pestle Analysis of Dollar General

Political

Economic

Social

Technological

Legal

Environmental

Major Competitors :

Major Brands :

WHY BUY THIS REPORT?

TABLE OF CONTENTS

DELIVERY AND FORMAT

WHY CHOOSE US?

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