US Discount Retail Chain Dollar General's same-store sales surged by 21.7% during the quarter and net sales were up 27.6%, far outpacing both its rival dollar store chains and grocery and big-box leaders such as Walmart and Target.
While the chain benefited from an industry-wide trend for shoppers flocking to stores to stockpile on items during March and early April, analysts say it was able to be able to grow at a faster pace than its rivals because of the location of the majority of its stores.
The stores which are mostly situated in rural or suburban areas are underserved by other operators. The majority of Dollar General's 16,500 stores are located in small towns or close to neighborhoods.
When the company started to expand in the early 2000s, its strategy was to go where Walmart wasn't, opening stores that were 40 miles from a Walmart.
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