Watch Out Walmart, Here Comes Dollar General

Your views on the housing market in your area:

“In Baldwin County, Alabama, prices are up. Rentals are hard to find and new home construction is off the charts.”

“There is a town north of Indianapolis called Fishers. It’s in affluent Hamilton County. Nearby ‘burgs are hot, but not as hot as Fishers. […] homes are selling in the first few hours of listing, multiple offers, final price well above list price.”

We know some folks in nearby Noblesville. Hearing the same as what you report from Fishers.

“New high rise apartment buildings are going up like gangbusters here in Stamford, CT. […] rents, even though they’re high here, are more reasonable than they are in New York City.”

“The current situation in Las Vegas is a timebomb with a short fuse. What happened in Vegas and many other areas of the country years ago (massive foreclosures) is bound to happen again as long as lenders continue to allow ownership without sufficient down payments.”

This last letter came from a reader with 50 years experience in real estate. We’ll accept it as an expert opinion.

For what it’s worth, we didn’t get any letters that said real estate is slow. Everyone who wrote in described boom-time conditions, from all over the country.

Is this confirmation bias or something more?

Send your opinions to, TheRundownFeedback@SevenFigurePublishing.com.

Your Rundown for Thursday, August 30, 2018…

When Dollar General Comes Around…

If you live in a rural area with a cooler real estate climate, chances are you’re familiar with Walmart in miniature, Dollar General (DG: NYSE).

DG reported earnings yesterday, and it’s clear the company’s domination of rural America continues.

Same-store sales were up 3.7% according to Reuters, leading to $407.2 million in net income.

That’s $1.52 a share, up from $294 million and $1.08 a share a year ago this time.

DG’s business model is as simple as it is brilliant.

The company opens new stores in locations where getting to Walmart is a hassle. The middle of nowhere, in other words.

As of late July, DG has ballooned to 15,000 locations in 44 U.S. states. Coming out of the Great Recession, DG was small potatoes. In the last decade the company’s turned into a monster.

DG’s fast expansion, however, isn’t without controversy.

Earlier this month The Guardian did a longform piece on Haven, Kansas and other rural towns in the Midwest where DG has essentially wiped out what remained of small, independent and family-run businesses.

Long story short, the arrival of DG puts tremendous pressure on the local businesses that survived Walmart arriving 30 miles away out on the highway 20 years ago.

We can debate the local impact of DG’s model, but there’s no arguing with the stock performance. DG over the last year:

chart

DG also pay $1.16 a year in dividends, good for a 1.07% yield.

This continued strong performance proves even further that between Amazon, Walmart, and now stores like Dollar General, retail as we know it has changed forever.

Cost, convenience, and immediacy rule all. DG checks those boxes in ways even Amazon and Walmart cannot.

What this means for the future of small, local, boutique businesses? Hard times are here to stay.

Now, turning to the markets this morning…

Market Rundown for Thurs. August 30, 2018

S&P 500 futures are down 3.75 at 2,911 at writing.

Oil’s up $0.41 at $69.92.

Gold’s down slightly at $1,210.

Bitcoin’s down $158.72 this morning, or 2.25%, at $6,893.

Send your comments and questions to, TheRundownFeedback@SevenFigurePublishing.com.

Have a great day, we’ll talk again tomorrow.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown and has been with Agora Financial / Seven Figure Publishing since 2005. He's been covering technology and markets for over a decade.

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