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 can.
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.
Dollar General 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.
According to
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.
"It's pretty good timing," Stacey Widlitz, an equity analyst with Pali Research, told The Tennessean. "I think the trends are certainly with them."
Dollar 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.
Discussion 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?