Dollar General has done well selling consumables in other categories so why not try its hand at beer and wine?
Tawn Earnest, a spokesperson for the dollar store chain, told The Associated Press the company plans to eventually sell the alcoholic beverages in half its stores. Dollar General currently operates 9,000 stores in 35 states.
"This (beer and wine) is generally in line with what they've been doing the past year," Zoe Tan, an analyst with Morningstar, told the AP. "They've been adding quite a bit of consumables. I think this is another way to help drive store traffic. This seems like a natural step to providing a different option to consumers in the store."
Discussion Questions: How big a competitive threat do you think dollar stores are to other retail outlets that currently sell beer and wine? Will dollar stores entry into the beer and wine business grow those categories or simply shift the business from other outlets?