Non-food discounters
I am continuing to look at the non-food discounter sector and have carried out a small financial analysis in order to better assess the market situation.
Dollar General $DG (+1,38%) and Dollar Tree $DLTR (+1,87%) are clearly the heavyweights in the US market. Both have sales of over 30 billion dollars and are positive. However, compared to their competitors Dollarama $DOL (-1,07%) only have a tiny profit margin.
The share prices of US companies have also fallen sharply in recent months. The US market is struggling with problems. Inflation and high costs are leading to smaller profit margins and poor future forecasts. Another major issue is the threat of tariffs on China, which is depressing share prices.
Dollarama, on the other hand, is a Canadian company and has at least nothing to do with China tariffs. The majority of the stores are located in Canada and South America, here under the Dollercity brand. The profit margins are really impressive for a "1 dollar store" and that is why the share has performed so extremely in recent months. Over the year, the share price has risen by 48%.
In my opinion, there is potential for further growth as the company continues to expand, especially in South America. South America is an exciting market for me anyway.
