Excellent post much like the DG post last week! This has been the most interesting and informative comparison I have read from you guys so far! Thank you!
Also, I agree with Brett's worries about DLTR/FD's competition. As DLTR/FD revamp and raise prices, I feel that e-commerce sites and stores such as Five Below become a bigger threat. Customers already love the scavenger hunt aspect to Five Below's set-up currently.
Lastly, I could see DG and FD slowly encroaching more and more into each other's locations as they grasp for more customers, much like AutoZone and Advance Auto Parts have very close proximities to many of each others locations.
Concerning "The bad news is that FD (maybe DT a bit too?) was underinvested for many years. The good news is that the new managers can now reinvest in existing stores and (hopefully!) get solid returns on these investments.". You have published the slide with the metrics on renovation. It shows a pay back period of 0.5y for DT and 2y for FD and it looks like an excellent opportunity if they can keep similar levels.
Excellent post much like the DG post last week! This has been the most interesting and informative comparison I have read from you guys so far! Thank you!
Also, I agree with Brett's worries about DLTR/FD's competition. As DLTR/FD revamp and raise prices, I feel that e-commerce sites and stores such as Five Below become a bigger threat. Customers already love the scavenger hunt aspect to Five Below's set-up currently.
Lastly, I could see DG and FD slowly encroaching more and more into each other's locations as they grasp for more customers, much like AutoZone and Advance Auto Parts have very close proximities to many of each others locations.
Thank you for this analysis.
Concerning "The bad news is that FD (maybe DT a bit too?) was underinvested for many years. The good news is that the new managers can now reinvest in existing stores and (hopefully!) get solid returns on these investments.". You have published the slide with the metrics on renovation. It shows a pay back period of 0.5y for DT and 2y for FD and it looks like an excellent opportunity if they can keep similar levels.