The Wall Street Journal reports that Dollar General "plans to pour an additional $100 million into its stores, primarily in staffing levels, as it looks to attract more bargain-hunting shoppers from rivals.
"Chief Executive Jeff Owen said Thursday the investment in additional labor hours looks to build on its continued sales growth and capture market share by lifting store standards and the in-store shopping experience."
The story notes that "the discount retailer said it expects sales to continue to rise this year, despite challenges from higher levels of theft in stores, rising interest rates and mounting inventories."
Dollar General already had said it planned to invest between $1.8 billion and $1.9 billion in the company this year.
- KC's View:
I'm not saying that the leadership at companies like Dollar General and its dollar store brethren, as well as limited assortment retailers that are price-driven, cheered last week when the mini-banking crisis dominated the news. But the suggestion that the collapse of a couple of banks and a lack of confidence in the banking system make a recession more likely certainly will be a boon to their sales numbers.
All this stuff is cyclical, and the cycle right now favors companies that are able to help their shoppers navigate a tricky economy. The retailers that will be in trouble will be then ones that occupy the mushy middle, that don't really stand for anything.