Dollar General, a low-cost discount store in the U.S., is showing a stronger stock price than rival .. - MK
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Dollar General, a low-cost discount store in the U.S., is showing a stronger stock price than rival retailers such as Walmart and Costco.
According to the financial investment industry on the 8th, the dollar general closed at $113.48 on the New York Stock Exchange on the 6th (local time). Dollar General, which was $75.63 at the beginning of the year, rose 50.05% in more than five months.
During the same period, stock prices have increased more than competitors such as Walmart (8.3%), Costco (11.56%), Target (-29.06%), and BJ's Wholesale Club (25.98%). The performance is better than Dollar Tree (23.58%) and Five Billows (28.53%), which are affiliated with Dollar Shops.
Dollar General, which sells daily necessities at low prices, is drawing attention this year as concerns over worsening economic conditions and high prices in the U.S. grow.
Dollar General's sales in the first quarter of last fiscal year rose 5.3% from the same period last year to $10.44 billion (about 14 trillion won).
Dollar General, which has a relatively low dependence on China, is also considered to have a lower "tariff risk" than its competitors.
Following President Trump's proclamation of "Liberation Day" on April 2, Dollar General's stock price rose 4.67% the next day. This contrasts with the 13.34% plunge in rival Dollar Tree shares.
Dollar General, based on low-income consumers, is expanding its base by attracting even wealthy consumers this year.
Todd Vasos, CEO of Dollar General, said, "The first quarter of this fiscal year has the largest number of middle-class and high-income customers in the last four years," adding, "Both the frequency of visits and the amount of purchases have increased."
The fall of Temu, a Chinese e-commerce company that has been pressuring Dollar General through an "ultra-low-cost airstrike," is also a positive factor for Dollar General.
Temu's parent company Pinduoduo's stock price has fallen 16% on the New York Stock Exchange since April 2, when President Trump abolished the benefits of the small tax exemption system from China.
Wall Street is scrambling to raise the price target for Dollar General. Morgan Stanley has raised its previous price target from $96 to $115 and UBS has raised its previous price target from $120 to $128.