Walmart is a problem for Dollar General: Analyst's big reason why
Shares of Dollar General (DG) plunged over 30% on Thursday after the company slashed its full-year guidance, with the CEO warning its core consumer is cash strapped. Piper Sandler managing director Peter Keith joins Market Domination to give insight into what's driving Dollar General's stock price. He notes that Walmart (WMT) is a problem for Dollar General, saying that it's a "giant vacuum cleaner sucking up a lot of market share," citing that part of the reason why is Walmart's digital strategy. Keith elaborates on why Dollar General is performing poorly during the current economic landscape: "When we're in this a little bit tighter consumer spending environment where normally Dollar General would be picking up market share, seeing what they call trade in or trade down, new customers coming into Dollar General. That's not happening. Those customers are going to Walmart because they like the digital capabilities. And frankly, you know, Dollar General, the dollar store model isn't very digital." He follows up with how the company could turn it around: "We do think they need to build out a more robust, digital playbook that if they want to get younger customers, they want to get more middle-income customers. There are certain basic things around digital shopping and e-commerce that are just demanded these days." Watch the video above to hear what Keith said about Best Buy's (BBY) Q2 results. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Nicholas Jacobino
