CVS will close 900 stores. That’s great news for Dollar General
Dollar General (DG) has rapidly expanded in the United States over the past decade, in large part by undercutting independent and chain drug stores and snatching away some of their shoppers. The discount giant is particularly well-positioned to capitalize on CVS’ planned closings.
CVS’ announcement comes at a timely moment for Dollar General — exactly as Dollar General tries to “establish itself as a health destination.”
Dollar General is launching a health care initiative for the first time, offering customers in what the company calls “health care deserts” in rural America a variety of health services in stores and expanded over-the-counter products. The company sees this market as a major growth area. Thursday’s “news from CVS (CVS) has the potential to accelerate that opportunity,” Chuck Grom, a retail analyst at Gordon Haskett Research Advisors, said a note to clients Thursday. CVS’ planned closings are a “positive” for Dollar…
