Timing Everything in Dollar General IPO
As most who
follow retailing know, the recession has meant a lot more business for
dollar stores as consumers try to stretch their bucks as far as they
Many of the
dollar store chains have welcomed this extra business and taken steps
to try and hold onto a group of new consumers who have flooded the channel
during the downturn.
has been among the chains benefiting most during this period. The company,
which was bought and taken private by Kohlberg, Kravis & Roberts
in 2007, is rumored to be looking at going public once again to take
advantage of its strong position in the marketplace.
a Wall Street Journal report,
Dollar General saw profits during the quarter ending May 1, grow from
$5.9 million in 2008 to $83 million this year.
good timing,” Stacey Widlitz, an equity analyst with Pali Research, told The
Tennessean. “I think the trends are certainly
General is looking to increase its store count by 450 stores this year
from the 8,362 it ended ’08 with. The chain
has stores in 35 states.
Questions: What will an IPO mean for Dollar General as a business? KKR
financial concerns aside, would the company be better off going public
or staying private?
- Dollar General May Go Public Again – The Tennessean
- KKR Plans a Dollar General IPO – The
Wall Street Journal