While many retailers have struggled mightily, or even gone out of business, a few have bucked that trend.
The companies defying current industry logic do things differently. They haven’t been hurt by the internet because they offer consumers experiences and opportunities that can’t be easily replaced by digital offerings.
In addition, all three — Costco (NASDAQ:COST), Dollar General (NYSE:DG), and TJX Companies (NYSE:TJX) — offer value. It’s not just about being cheap, but pricing has proven important in a market where consumers can get nearly anything they want with just a few keystrokes.
Dollar General keeps growing
Dollar General’s growth model has been about adding stores more than growing sales at its existing locations. Basically, the chain has a model that works: It opens in a new area and builds its business to a predictable level. That may not be the typical model investors reward, but it’s a successful and sustainable one.
In Q1 2017, Dollar General saw overall sales rise 6.5% to 5.6 billion, driven mostly by the addition of new stores. Same-store sales rose 0.7% for the quarter, which the company attributed to “an increase in average transaction amount, partially offset by a decline in traffic.”
The chain expects to add 1,290 new stores in 2017, after adding about 1,000 in 2016. That will continue to drive revenue higher as the company has proven it knows how to identify markets for efficient growth.
Consumers love hunting for bargains
The TJX Companies brands, which include Marshalls, HomeGoods, and T.J. Maxx, all share one trait in common: The three discount retailers carry ever-changing merchandise. That allows bargain-seeking customers to have a sense of discovery when they find something they want. It also drives repeat visits because you never know when you’ll find the deal you were looking for (or that you didn’t even know you wanted).
During the first quarter of the company’s fiscal…