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DG is in the market segment known as the dollar store category. As a result, competitors such as Wal-Mart are in the same industry but not the same peer group. Comparisons will be made throughout this report to Wal-Mart and other big firms because they tend draw some of the same customers.
Retail merchandise stores attract many different types of people. For example, Wal-Mart targets all income level households, whereas dollar stores such as DG serve "need-to" shoppers. More specifically, the target customers of DG are normally in towns with less than 20,000 people and have the following characteristics:
? most customers are in the low-, middle-, and fixed-income brackets
? 81 percent of customers are female
? 44 percent of customers are over the age of 55
? 48 percent of its customers earn less than $30,000 a year
? 26 percent of customers have incomes lower than $20,000
? most customers live within five miles of the store
DG serves a narrow market range and offers low prices...
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