No. of Recommendations: 5
I think some of this can be explained by competition.
Within 5 miles of my home, I have Whole Foods, Acme, Costco, Wegmans, Aldi, Giant, Trader Joes, Target, Wal Mart and some others. Me and the wife frequent most of them within an average month and we know who has the best prices on most items we buy.
I imagine your average DG customer has much less competition and maybe the means to get to them easily so stores have more pricing power.
I avoided investing in DG because I haven't been in one and I thought the Debt/Equity Ratio was too high. I like the old Peter Lynch rule of 80% or less.
