Dollar General

More recently, the recession impelled many bricks-and-mortar retailers towards a damaging focus on discounting that eroded not only many stores’ price positioning but also any point of differentiation or exclusivity.

More often than not, Target’s products fall under the consumer discretionary category. Thus, the company is vulnerable to macroeconomic forces— consumer spending trends, employment and income, and GDP (gross domestic product) growth rate. After a failed attempt to expand into Canada, Target’s operations are limited to the United States market. This makes the company’s financial performance more vulnerable to our fluctuating economy. It is primarily these macro forces, in the recession and thereafter, that forced Target to shift towards an affordability focus in all of its product lines. However, these macro forces, in the betterment of the state of the economy, also provide Target with the opportunity to refresh its product offerings according to the tastes and preferences of its consumers, while continuing to offer a relatively low price point, regardless of the product area. In this way, Target is shifting from employing a production concept, in which its main focus is to sell products at a low production

Low product differentiation and economies of scale: There isn’t much product differentiation at play in the retail industry as there are well known manufacturers whose products are offered for sale, which leaves price to compete on. Current well established retailers with thousands of stores enjoy the economies of scale to control their cost that a new entrant might not be able to replicate after immediately entering the industry.

If we analyze Dollar Store, we will see that it has established over 140 stores across Canada since its inception in 1998. As it has been considerably increasing its market reach across Canada; they are considered a direct competitor to Dollarama. On the other hand, Great Canadian Dollar stores are extending their reach in eastern Canada. Additionally, they are very present in the community by offering both charitable and communal support. At last, Dollar Tree is a growing chain of discounted retail stores in the United States. It operates over 4400 retail stores in 48 states of the US and in Canada. Thus, they are ready to expand their customer base into Canada. Also, Dollar Tree offers a much broader range of products compared to Dollarama, for example frozen foods and dairy items. As such, there is a very high competition in the discounted retail stores industry. However, in such a high competitive environment, Dollarama is still able to open over 150 stores in the past four years only. Also, considering their stock trend, their share price had increased from 25$ to 56.90$ per share in only one year. That represents a growth of 128% in a single year. We can conclude that their shares are in demand in our current market environment. Thus, we can assess that they are very well positioned in today’s competitive environment.

With 30% of Dollar General’s inventory being made up from nationally known brands and the other 70% consisting of Private label brands, Dollar General does not face a large threat from the bargaining power of suppliers. While the national brands are on par, or sometimes below, big box stores such as Wal-Mart’s prices. Dollar General’s focus is supplying consumers with quality products at the lowest price possible. Since the majority of their products are created internally the power of supplies to control prices or production is very low.

Family Dollar has a big competitive advantage over supermarkets and box stores. The same products that the supermarkets and box stores carry, Family Dollar sells to its customers for a cheaper price. Family Dollar stores are conveniently located in your local neighborhoods within walking or a short driving distance. Most supermarkets and box stores you have to fight with crowds and parking in a larger shopping district. Family dollar not only sells food and health and beauty products but they also have clothing for the family. This is something that supermarkets do not carry. Some box stores do carry clothing products but not with the convenience that Family

The intensity of rivalry and the threat of substitutes are strong components for J.C. Penney to consider as they continue to strive for increased revenue and market share. Their two primary competitors are Macy’s and Kohl’s, both of whom have fiercely competitive strategies to be strong retail operations. For instance, while Macy’s offers a multitude of promotional deals and is working hard to choose products based upon demographics and geographic segmentation, Kohl’s is attempting to reduce their inventory levels and improve their marketing strategies in order to become a stronger competitor in the department store segment of the retail industry. In order to compete with their competitors, J.C. Penney aims to focus on their previously successful promotions and home department segmentations by bringing in new reputable designers in order to attract a larger customer base. Due to the fact that the intensity of rivalry and threat of substitutes are both moderately strong in the retail department store industry, J.C. Penney ought to be diligent in their implementation of strategies in order to achieve success in the retail business.

Americans have been bombarded by new worries in recent days with the war in Libya, unrest in much of the Middle East, and the seemingly endless series of catastrophes in Japan as reported by a recent Gallup poll measuring economic confidence. Added to that, there is a weak job market, increasing fuel prices, and fierce budget battles in Congress, obviously, it is clear the U.S. economy still faces

According to Reuters, “the Dollar Tree Inc., was incorporated in 2008, as discount retail stores” (2016, para. 1). Today, the company has 13,851 discount retail stores located throughout 48 states and five outside the United States (Reuters, 2016). Their competitors are Wal-Mart and Target (Reuters, 2016). The company has two segments. (Reuters, 2016). The first segment is the Dollar Tree, which “are discount variety stores offering merchandise at a fixed cost” (Reuters, 2016, para. 1). Their second segment is Family Dollar, which are “general merchandise retail discount stores providing consumers with a selection of merchandise in neighborhood stores” (Reuters, 2016, para. 1). According to Kurumi Fukushima, when the Dollar Tree were given

In 2015, Dollar Tree finalized its acquisition of the Family Dollar brand chain (Thomas, 2015). Per Thomas (2015), the combining of these two brands will give the organization more than 13,000 stores in 48 states and five of the Canadian provinces and allow them to be a multi-price point retail chain. Dollar Tree CEO Bob Sasser was quoted as saying “This is a transformational opportunity for our business to offer a broader, more compelling merchandise assortment, with greater value, to a wider array of customers” (Thomas, 2015). Another change that has been noted is that the size of the Dollar Tree stores is getting bigger. They are placing themselves in stores with more square footage so that they can offer more products and incorporate food items into their offerings. Even with combining of the two brands and expanding their store size, Dollar Tree corporation is still facing

The retail industry is highly competitive, with few barriers to entry. Each Company competes with many other local, regional and national retailers for customers, associates, locations, merchandise, services and other important aspects of the Company’s business. Those competitors include other department stores, discounters, home furnishing stores, specialty retailers, wholesale clubs, direct-to-consumer businesses and other forms of retail commerce. Some competitors are larger than JCPenney, have greater financial resources available to them, and, as a result, may be able to devote greater resources to sourcing, promoting and selling their products.” There are many factors that characterize competition, including advertising, service,

The Dollar General is an American wholesale company that was first initiated in Scottsville, Tennessee by Turner and Cal Turner. Its headquarters are located in Goodlettsville, Tennessee. The mission statement of the Dollar General is "Serving Others." This mission statement helps to bring out the innate requests and intentions of the company in the United States of America and other countries in the world. The company has a vision that describes how it manages to cater for four different types of people. These four groups of people include the customers, the community, employees, and shareholders. Within these categories of people, Dollar General aspires to serve others through deliver of price quality and terrific prices for customers, opportunity, and respect for employees, a superior return for shareholders and a better life for the communities.

The current economy has hurt many retail businesses. Every month another retail giant closes its doors. Retail stores which we never would have imagined have gone bankrupt. Retail sales have declined greatly. Major cause of this declination is because many people are unemployed and cannot afford to purchase anything. Retailers are forced to discount prices to increase sales, but discounting still hurts margins. Retailers are assuming a very

The respect and care Dollar General gives to the customers and employees comes back to benefit them in their revenue. Dollar General gives the customer a cheap reliable product and distributes it through stores that are local and convenient; convenience and price is where they win. At Dollar General they research and battle daily to provide the cheapest prices in the business at our stores. Not only are the prices cheap, but they are made easy for the customers when shopping. Customers can find the prices of all the products in even increments. This makes it easy for the customers when adding up totals and figuring out taxes. Another convenient aspect of our stores is the size. On average a Dollar General store will be about 6,900 square feet. This allows the customer to get in and out of the store as quickly possible and get on with their day. In fact the average shopper at Dollar General will have completed their shopping, paid, and out the store within 10-20 minutes. This can be compared to a customer going into Wal-Mart shopping for the same goods would spend around 55 minutes in the store. Our last strength would be the products. Dollar General is designed

Dollar general have a certain chain of management starting at the top in the headquarters department located in Goodlettsville Tennessee.