Dollar General (DG) Gets Smaller to Get Bigger

Dollar General (DG) plans to expand its test of its smaller-format stores this year even as other retailers, Wal-Mart Stores (WMT) in particular, have abandoned the concept, Investor’s Business Daily reported.

Dollar General currently is trying out around 30 of the smaller-format stores, which are less than 6,000 square feet vs. 7,400 square feet at the typical location. Earlier this month, the company said it will open about 80 smaller-format stores this year as part of an overall plan to open 900 new stores.

The smaller stores help Dollar General “capture growth opportunities” in more densely populated metropolitan areas and smaller, lower household rural sites,” said Chief Executive Todd Vasos.

Dollar General announced Wednesday it also plans to step up its growth in 2017, adding 1,000 new stores. In addition to its new stores, the company plans to remodel or relocate 1,775 outlets between now and the end of 2017.

DG is a Cabot Benjamin Graham Value Investor stock.

Stock Picks


This stock could rise 50% before becoming fairly valued.

This hot technology company is growing like a weed, thanks to products that speed up cloud communications.

This stock is somewhat well known, but far from well loved.

Cabot Wealth Advisory

Targeting Upside in PayPal Stock

By Jacob Mintz on October 25, 2016

PayPal stock is trending higher after last week’s strong earnings report, with plenty of upside. Here’s how options traders can take advantage of that potential.Read More >

Nine Characteristics of Great Growth Stocks

By Timothy Lutts on October 24, 2016

Recommending great growth stocks is our specialty at Cabot. But so is education--we want you to be able to find growth stocks on your own too. Here are nine characteristics of what to look for.Read More >

How to Find Great Growth Stocks in a Scary Market

By Paul Goodwin on October 21, 2016

Even in today’s scary market, there are great growth stocks out there. Here’s how to find them—and how to avoid the kind of losses that can haunt your portfolio.Read More >