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David Livingston

Principal
DJL Research

Dollar General Getting Into Beer and Wine Biz

August 20, 2010

FROM RETAILWIRE:
Dollar General has done well selling consumables in other categories so why not try its hand at beer and wine? How big a competitive threat do you think dollar stores are to other retail outlets that currently sell beer and wine?      [more...]

MY COMMENTARY:

I agree with Bob Phipps, the demographics will drink it up. Many of these stores are located in blighted areas where the local liquor store is the commercial focal point. The good news is there is a high demand among the consumers. The bad news is that it will increase security risks. I don't think Dollar General will be too big of a threat to local businesses. In blighted urban areas, local mom and pops often skirt the law and accept Food Stamps, WIC, and such for liquor where as Dollar General and other chains will never do that.

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