Dollar General Corp. fell after cutting its profit outlook on higher supply-chain costs and a shift in customer demand to less-profitable consumable products.
Link: Dollar General Stock (DG) Falls as Supply Chain Costs Eat Into Profit - Bloomberg
The part about “not being able to find warehouse space” is the most curious part. Strikes me that a few companies are making unforced errors in this economy.
And yet, in a recent linked in post @rickwatson , you highlighted how DG is looking to add 1500 locations and add fresh produce to the mix.
Something doesn’t quite add up: got a supply chain problem, so let’s make it worse by growing like topsy and adding a new complex category which needs a different kind of warehouse and supply chain model (unless they will manage to outsource fresh produce to 3rd parties for direct to store delivery or “trunked” via regional warehouses).
