The supply chain in lieu of the welfare state

The Wall Street Journal, of all places, has a fascinating human interest piece on Dollar General which is dense with insight, How Dollar General Became Rural America’s Store of Choice:

The local Dollar General store, built on a rural highway and surrounded by farmland, sells no fresh meat, greens or fruit. Yet the 7,400-square-foot steel-sided store has most of what Eddie Watson needs.

Dollar General Corp.’s 14,000 stores yielded more than double the profit of Macy’s Inc. on less revenue during its most recent fiscal year. And its $22 billion market value eclipses the largest U.S. grocery chain, Kroger Co., which has five times the revenue.

The more the rural U.S. struggles, company officials said, the more places Dollar General has found to prosper. “The economy is continuing to create more of our core customer,” Chief Executive Todd Vasos said in an interview at the company’s Goodlettsville, Tenn., headquarters.

Dollar General’s typical shopper “doesn’t look at her pantry or her refrigerator and say, ‘You know, I’m going to be out of ketchup in the next few days. I’m going to order a few bottles,’” said Mr. Vasos, the company’s chief executive. “The core customer uses the last bit of ketchup at the table the night prior, and either on her way to work or on her way home picks up one bottle.”

Camouflage is a proven winner. This year, Dollar General became the exclusive seller of dog food from the camouflage-gear brand Mossy Oak. “Even off-brand camo does well here,” said the Evensville store manager Justin Ray, who has a display of camouflage merchandise, including pacifiers and pet toys.