From “Dollar General: Intense Focus” (June 2025): “Given my views on the competitive threat from Walmart omnichannel, [DG’s evolving digital offerings] are a notable change in their strategic focus… Management is taking the necessary action to find a sustainable answer for this use case. It’s a timely example of how the DG model needs to continue evolving and improving.”
Dollar General’s Q2 FY25 results provided another quarter of evidence that their financial recovery is underway. If that statement proves accurate, leading to results that live up to the financial vision outlined alongside DG’s Q4 FY24 results, the shares are attractively priced at ~$110 per share.
What has also become increasingly apparent is that DG management has developed a clearer view of the role(s) they can play in an omnichannel world – and, as importantly, the one’s they can’t take on while staying within the financial constraints of their business model. As we think about DG’s evolving value proposition, this comment from CEO Todd Vasos stood out to me: