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    Dollar General: Group B6 Chiranjib Mukherjee Chitransh Chaudhary Ishika Gupta Naireeta de Sudeshna Halder Varshika Dharia

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    Group B6 consists of 6 members: Chiranjib Mukherjee, Chitransh Chaudhary, Ishika Gupta, Naireeta De, Sudeshna Halder, and Varshika Dharia. The document compares Dollar General, an extreme value retailer, to Walmart, a mass discount retailer. It discusses their differences in locations, assortments, formats, and shopper time spent. Dollar General has improved inventory turns and revenue but decreasing sales growth and EBITDA due to reduced margins. The document suggests ways for Dollar General to copy its success such as focused assortments, low costs, and profitability at small stores. It recommends tweaking product

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    Dollar General: Group B6 Chiranjib Mukherjee Chitransh Chaudhary Ishika Gupta Naireeta de Sudeshna Halder Varshika Dharia

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    Group B6 consists of 6 members: Chiranjib Mukherjee, Chitransh Chaudhary, Ishika Gupta, Naireeta De, Sudeshna Halder, and Varshika Dharia. The document compares Dollar General, an extreme value retailer, to Walmart, a mass discount retailer. It discusses their differences in locations, assortments, formats, and shopper time spent. Dollar General has improved inventory turns and revenue but decreasing sales growth and EBITDA due to reduced margins. The document suggests ways for Dollar General to copy its success such as focused assortments, low costs, and profitability at small stores. It recommends tweaking product

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    Dollar_Group_06

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    Group B6 consists of 6 members: Chiranjib Mukherjee, Chitransh Chaudhary, Ishika Gupta, Naireeta De, Sudeshna Halder, and Varshika Dharia. The document compares Dollar General, an extreme value retailer, to Walmart, a mass discount retailer. It discusses their differences in locations, assortments, formats, and shopper time spent. Dollar General has improved inventory turns and revenue but decreasing sales growth and EBITDA due to reduced margins. The document suggests ways for Dollar General to copy its success such as focused assortments, low costs, and profitability at small stores. It recommends tweaking product

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    30 views6 pages

    Dollar General: Group B6 Chiranjib Mukherjee Chitransh Chaudhary Ishika Gupta Naireeta de Sudeshna Halder Varshika Dharia

    Uploaded by

    No name
    Group B6 consists of 6 members: Chiranjib Mukherjee, Chitransh Chaudhary, Ishika Gupta, Naireeta De, Sudeshna Halder, and Varshika Dharia. The document compares Dollar General, an extreme value retailer, to Walmart, a mass discount retailer. It discusses their differences in locations, assortments, formats, and shopper time spent. Dollar General has improved inventory turns and revenue but decreasing sales growth and EBITDA due to reduced margins. The document suggests ways for Dollar General to copy its success such as focused assortments, low costs, and profitability at small stores. It recommends tweaking product

    Copyright:

    © All Rights Reserved
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    Download as pptx, pdf, or txt
    of 6

    Group B6

    Chiranjib Mukherjee
    Chitransh Chaudhary
    Ishika Gupta
    Naireeta De
    Sudeshna Halder
    Varshika Dharia

    Dollar General
    Extreme value v/s Mass Discount Retailers

    EXTREME VALUE RETAILER (Dollar) MASS DISCOUNT RETAILER (Walmart)


    competed on price and convenience competed on price and large assortments

    Located in areas with population of


    <20,000 located in areas with population of at least 50,000

    focused assortment, focus on high-moving


    SKUs varied assortment- focus on providing variety
    small-box format big-box format
    shoppers typically spned 10-20 minutes shopper spends approx. 55 minutes in the store
    Sales/ sq. ft. has improved over the years

    Dollar
    General has It has improved inventory turns from 3.8
    in 2002 to 4.7 in 2006
    grown
    satisfactorily
    over the past Revenue has also grown by 4.5% from
    $7929million to $ 8260 million
    years….
    However, sales has been increasing at a
    decreasing rate, and EBITDA has also fall
    down due to reduced operating margin
    • Focused approach- by having a focused
    assortment, Dollar has been able to generate
    more same-store sales than Walmart
    What does • Low cost at all levels- most of the stores are
    it take to located in second-tier locations to reduce real
    estate cost
    copy the • Profitable even at small size- low cost model
    helps Dollar in being profitable despite
    Dollar’s operating such small stores

    success? • Better reach- due to its small box strategy,


    Dollar is able to reach population in far-fetched
    areas, where Walmart will find it difficult to
    open a store
    Growing • The mantra of the company has always been to
    serve people and provide convenience at competitive
    through prices

    tweaking • Options like reaching to more affluent customers can


    hamper the value-perception of Dollar
    product-mix • Company should focus on pull-strategy, thereby,
    and changing the product mix to suit the requirements of
    their shoppers
    expanding in • Expanding in western U.S. is easier as there are less
    extreme value retailers in the area, they can also
    Western U.S seek to grow through acquisition
    seems more • Providing more value-added services like, check
    cashing can be coupled with tweaking product mix
    favourable and expansion
    THANK YOU

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