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Dollar General Corporation

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Dollar General’s commitment toward better price management, merchandise initiatives and cost containment has helped the stock to outpace the industry in the past six months. Strategic endeavors have helped it to deliver better-than-expected numbers for the fourth straight quarter, as it posted third-quarter fiscal 2017 results. Upbeat performance aided management to raise 2017 sales outlook. Increase in sales was driven by robust performance of consumables, seasonal and apparel categories. Moreover, rise in average transaction amount as well traffic has been driving comparable sales higher. Despite robust performance, investors’ remained concerned over cut in SNAP benefit. Trump’s suggestion of reducing food stamps program by $193 billion will have a detrimental effect. Cut in SNAP benefit will hamper performance as people with low income will have less money to spend and could restrict spending to low margin products.


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