Better Buy: Dollar General vs. Walmart

No business is immune to the negative impact of a recession. Yet consumer staples retailers with wide selling footprints can perform well during downturns. Demand for essential products like groceries and apparel remains relatively stable, after all, even as people reduce spending in areas like travel and dining out.

That fact helps explain why companies like Walmart (NYSE: WMT) and Dollar General (NYSE: DG) are targeting solid sales growth in 2023 even as economic growth rates slow. Let's take a closer look at these retailers to see which is the better fit for your portfolio today.

Both companies are performing well in a challenging selling environment. In late February, Walmart announced that sales rose 8% in the core U.S. market, in part thanks to market share gains in the grocery department. Likewise, Dollar General executives credited increased market share when it revealed 6% comparable-store sales growth in its fiscal Q4.

Continue reading


Source Fool.com