Wednesday, January 7, 2015

Dollar General and family Dollar: (Unedited): 07 Jan 2015:

Family Dollar will become a poison in the Generals veins.
There are better options and opportunities for Dollar General. I have been thinking about this for some time. Especially how DG has $9 Billion in CCAASSHHHH. Of course all of that money is located in the basement of one Dollar General Market store in New Port Richey, Florida.
I do not think this purchase is a wise move for the short term or even the long term. In the medium term. It will work out nicely and then what ever long term plans that DG originally had will become negated. I can explain more on this later. It is all about options and opportunities. While the Family Dollar acquisition seems like a good move. It isn't. There seems to be dishonest secret deals going on. This is just what I have picked up on from all of the news sources. This is just my opinion and gut feeling. Possibly even involving investors who are willing to lose about a half of billion dollars. Give or take a few dollars. Who just gives away that kind of money. That's unheard of. I first thought it was the corporate officers trying to make sweet heart deals for themselves. Maybe they all are now. Do the math on how much they lose. DG bought around 3%. Sell it and walk.
Nonsense Stench: (Unedited): 07 Jan 2015:
 When nonsense fills the air with it's foul stench. It's time to walk upwind. 
Here is the plan for avoiding family Dollar and Dollar Tree nonsense.
Dollar General

1). Begin to expand the physical size of the Dollar General stores by about 1,000-2,000 SF. In this new space will reside extra warehouse space and floor space for expanded dollar only items. Which to include extra coolers and freezers. For dollar items only. I do think in the DG emerging markets. You should go with 5,000 extra square feet. This would put additional pressure on both Family Dollar and Dollar Tree related stores. They would begin to crumble under their debt loads. Which in the beginning they will stop any re-investments and allow the company to do a K-Mart. I think it was K-Mart. Kmart big changes was to only put p new signs called Big K. Maybe the customers won't notice the roofs falling in.

1A). With your existing stores do add more dollar items as well as dollar coolers and freezers. Close to the registers. Using the "BELL CURVE". Ascertain what are the top selling items in Dollar Tree and Family Dollar and then Assign those items space in your stores by square feet available.

That's really all. That will be enough to put a financial woe on those dollar stores. Find and keep those good people like at that DG Market in New Port Richey, Fl. Sal is alright to.
Dollar General Market
1). Expand the walk-in Cooler, Freezer, Ice Cream with dedicated Dollar item products. Marketing term. (DG Dollar Doors).
2). More of these DG Markets should be stand alone stores.
3). Expand the dry goods with more dollar items.
4). Make substantial investments into regional fuel delivery companies. Yes, Substantially huge.
5). You gotta go with the fuel pumps. Create a two part store system. A quick convenience side of the store. Where fuel is purchase as well as snacks and quick meals. Something like the T/A, Petro Brand of truck stops except DG unique. Get rid of the insanely high mark ups as is typical in convenience stores everywhere. Many people want to get gas and go. Using the "BELL CURVE" once again. Ascertain what are the top 100 items sold in quantity and daily from a typical convenience store.  Then assign enough square footage plus impulse items sales space and weekly sales ad space.
6). Automated car wash. It's a part of the deal.
7). Digital and automated air compressor for free. 
8). Suggestion only. Since the Dollar general name is in green. If you do begin to sell fuels. The roof top of the fuel island should be covered with Solar Panels. Maybe, even the entire roof of the stores.  Call it. "Going Green with Dollar (Gene)ral"
Create a Dollar General store character. Call him "Dollar Gene or Green Gene". He can explain how wonderful Dollar general is and why you should go there. The Dollar general difference. For Instance, The true 34 degree cooler and how it helps the dairy, egg and meat products.
Everyone knows Green Gene and Green Gene is just one of those excited to be there kind of guys, well anywhere. Of course DG Gene seems to always get in the way of moving DG staff. They all gently and kindly call out to Green Gene to move quickly or to physically move a poorly clothed Gene out of the Ice Cream freezer. Green Gene can also be that comedic safety teacher.
How many 7-11's are there?
plus all of the others.
Once you begin this process. The entire face of the convenience store industry will fundamentally change. 
This is the highly profitable DG future.
By staying focused and staying on your original course. Without being side tracked by some losers money and assets. The things you hope for will manifest greater than if you get side tracked by someone's Stench.
Also, Anyone associated within the corporate structures of Family Dollar and Dollar Tree. Should not be accepted in any way for any employment opportunities with Dollar General.  What happens to a bushel of good apples when a bad apple is placed inside of the same basket? You guessed it. All of the good apples go bad.
All information is solely for Dollar General Officers use only.  Not for use or to be copied by anyone, any group, any corporation, any entity or any where for any reason. Without first contacting my lawyer and his agents. All rights reserved. 

 Added on 12 Jan 2015: Merger news:
According to news reporting about this merger and all of the problems associated with it. I want to strongly encourage Dollar General to resend their offer from the negotiating table. while at the same time selling their entire 3%+ stake in Family Dollar stocks immediately. Faster and sooner if possible.
It looks like the share holders have been liquidating assets which is a common practice of any corporation which is about to be sold or merged or bankrupt. Which means the value of Family Dollar is less than what is was when it was valuated. I have not seen any reporting of Family Dollar taking on any new debts. If they have then the Family Dollar corporation has further devalued. 
Those cash funds set aside for Family Dollar should be utilized for future logistics when the Panama Canal widening project is completed in 2016+. By purchasing industrial zoned parcels in close proximity to the shipping ports all along the Eastern sea board of the USA and the Shipping ports all along the Gulf of Mexico. By doing so. Will create a logistical savings and thus translated into better competitive pricing with the new Walmart Neighborhood markets which seem to be popping up. Especially, a new one in new Port Richey, Fl.
You will also need to re-consider your expansion into California as shipping, warehousing and other logistics related businesses will diminish greatly. I do believe there will be a migration of logistics related workers/families at all levels out of California. Thus, causing a substantial devaluation of commercial and residential real estate assets. To a lesser degree in Oregon and to even a lesser degree in Washington State. Does this mean Dollar general should leave California? NO. DG should plan for it. 
DG should expand their Distribution Centers into Texas and ?Massachusetts? areas. Close to the deep Water ports. DG should no longer use outside trucking firms for anymore store deliveries. Which means DG needs to expand their capabilities into refrigeration/Freezer warehousing capabilities. Container receiving Distribution centers. For all shipping related cargo's. 

?Massachusetts? means DG DC facilities North of New York City Proper. With refrigeration/Freezer as well as Container off loading, sorting, staging, storing. Your new DG DC's should be of that mind set. I know that DG is good about not forcing truck drivers into breaking federal DOT laws. Unlike Walmart, Target and many other grocery store chains. Expanding this ability should be seen by the Fed as a safe and legal positive thing. The promotional marketing of this should be positively seen. 
At the top right of my blogger page is a donate button for PayPal. If you liked this blog, were inspired from it. Please help me out with just a little something.  Anything is greatly appreciated and welcomed.  
  “Musings of an American Truck Driver”: