Dollar General (NYSE: DG) is one of the largest discount retailers in the United States by number of stores. Across the United States, it has 18,190 stores. Most of them are located in the southern and eastern parts of the nation. Dollar General sells a broad selection of merchandise, ranging from consumable items to apparel to seasonal items, at everyday low prices – typically under $10 per item. Strong leadership and planning, especially under current CEO Todd Vasos, has resulted in 31 consecutive years of positive same-store sales growth between 1990 and 2020. Today, we will talk about why Dollar General Franchise is not available.

This video was based on an exclusive Vetted Biz analysis, click here for the full report: https://www.vettedbiz.com/dollar-general-franchise/

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00:00 Introduction
00:17 Is Dollar General Open to Franchising in 2022?
00:27 Opportunities with Dollar General
00:38 Dollar General Growth
01:05 Dollar General Locations & Costs
01:57 What Does Dollar General Offer?
02:23 Number of Dollar General Store Closings
02:45 Dollar General Competition
02:56 Net Income During the Pandemic
03:37 Conclusion

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Dollar General’s large domestic presence and history of profitable growth has prompted questions about whether or not investors can own and operate a Dollar General franchise. Unfortunately, Dollar General stores are not available for franchising. The company owns and operates all of their units. Meaning that profits stay within the company and do not go to outside operators.

WE ESTIMATE THAT THE DOLLAR GENERAL FRANCHISE COST WOULD BE $1,000,000 TO $2,000,000+.

Nevertheless, prospective franchisees who intend to explore franchising opportunities in the discount consumer goods market should assess comparable businesses in the industry, such as Dollar General. This article will analyze Dollar General’s annual report, the 10K, for 2021. And examine the financial health and viability of the Dollar General business. Including potential investment catalysts, risk factors, and their outlook on the future.

Founded in 1939 in Kentucky, Dollar General has expanded across the United States with a simple business model: providing customers with their everyday needs at low prices in convenient, small-box stores.

Dollar General offers basic merchandise with the idea that customers can address most of their shopping needs in one trip. To this end, the company offers four types of goods:

Consumables are the largest category and include cleaning products, packaged foods, snacks, and health products;
Seasonal products include holiday items, toys, cards, phone accessories, gardening, and home office supplies;
Home products include kitchen supplies and small appliances; and
Apparel includes basic apparel for a wide demographic of individuals.

Dollar General stores form the backbone of the company. Many are small stores in small towns, – the average building consists of 7400 sq ft of selling space, and 75% of stores are located in towns with less than 20,000 people. Stores have low operating costs and limited maintenance capital, driving operating costs down. Dollar General has also experienced net growth in the total number of stores operated. Which is a reflection of the company’s success in locating suitable markets.

Dollar General operates in the discount consumer goods market. Which is a highly mature and competitive market with respect to price, customers, location, quality, and market share. The direct competitors are other small-box discount retailers, namely Family Dollar, Dollar Tree, and 99 Cents Only. Dollar General also indirectly competes with larger mass merchandise retailers such as Walmart, Target, CVS, and Rite-Aid. Executives at Dollar General believe they stand out in this market by consistently offering low prices in a convenient, small-store setting.

There is the possibility to build a Dollar General and lease the space to Dollar General. You could even sell the property to a REIT (real estate investment trust) to recoup your investment faster.

This video was based on an exclusive Vetted Biz analysis, click here for the full report: https://www.vettedbiz.com/dollar-general-franchise/

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