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Fast Five Shorts | Is Dollar General Right to Pump the Brakes on Fresh Produce? · Omni Talk Retail

• 0:00
  Dollar
• 0:00
  General
• 0:00
  is
• 0:01
  slowing
• 0:01
  down
• 0:02
  its
• 0:02
  fresh
• 0:02
  produce
• 0:03
  rollout.
• 0:04
  According
• 0:05
  to
• 0:05
  Grocery
• 0:05
  Dive.
• 0:06
  Dollar
• 0:07
  General's
• 0:07
  efforts
• 0:08
  to
• 0:08
  bring
• 0:08
  fresh
• 0:09
  produce,
• 0:10
  not
• 0:10
  produce
• 0:10
  produce
• 0:11
  to
• 0:11
  locations
• 0:12
  will
• 0:12
  continue
• 0:12
  into
• 0:12
  the
• 0:13
  new
• 0:13
  year,
• 0:13
  but
• 0:13
  at
• 0:14
  a
• 0:14
  slower
• 0:14
  pace
• 0:15
  compared
• 0:15
  to
• 0:15
  years
• 0:15
  prior.
• 0:16
  Dollar
• 0:16
  General's
• 0:17
  plan.
• 0:17
  Dollar
• 0:18
  General
• 0:18
  plans
• 0:19
  to
• 0:19
  begin
• 0:19
  selling
• 0:20
  fresh
• 0:20
  produce
• 0:20
  at
• 0:20
  approximately
• 0:21
  300
• 0:21
  more
• 0:22
  locations
• 0:22
  in
• 0:22
  2025,
• 0:23
  bringing
• 0:24
  the
• 0:24
  total
• 0:24
  number
• 0:24
  of
• 0:24
  stores
• 0:25
  that
• 0:25
  have
• 0:25
  this
• 0:25
  offering
• 0:26
  to
• 0:26
  roughly
• 0:27
  7000,
• 0:28
  which
• 0:28
  is
• 0:28
  still
• 0:28
  a
• 0:28
  lot
• 0:29
  of
• 0:29
  stores.
• 0:29
  From
• 0:30
  2022
• 0:31
  to
• 0:31
  2023,
• 0:32
  Dollar
• 0:32
  General
• 0:32
  added
• 0:33
  produce
• 0:33
  to
• 0:33
  more
• 0:33
  than
• 0:34
  1800
• 0:35
  stores,
• 0:35
  bringing
• 0:35
  the
• 0:35
  store
• 0:36
  count
• 0:36
  that
• 0:36
  offered
• 0:36
  fresh
• 0:37
  fruits
• 0:37
  and
• 0:37
  vegetables
• 0:38
  to
• 0:38
  more
• 0:38
  than
• 0:38
  5,000
• 0:39
  locations.
• 0:40
  However,
• 0:40
  $
• 0:41
  General
• 0:41
  still
• 0:41
  has
• 0:42
  ambitious
• 0:42
  store
• 0:43
  update
• 0:43
  plans
• 0:43
  in
• 0:43
  the
• 0:43
  new
• 0:44
  year.
• 0:44
  During
• 0:45
  the
• 0:45
  fiscal
• 0:45
  year
• 0:45
  2025,
• 0:46
  the
• 0:46
  retailer
• 0:47
  aims
• 0:47
  to
• 0:47
  complete
• 0:47
  around
• 0:48
  4,885
• 0:50
  projects.
• 0:51
  That
• 0:51
  sounds
• 0:51
  like
• 0:51
  an
• 0:51
  exact
• 0:52
  number.
• 0:52
  Very
• 0:52
  specific.
• 0:53
  Yeah.
• 0:53
  Including
• 0:54
  575
• 0:55
  store
• 0:56
  openings
• 0:56
  in
• 0:56
  the
• 0:56
  US
• 0:57
  and
• 0:58
  2000
• 0:59
  full
• 0:59
  remodels.
• 1:00
  And
• 1:01
  is
• 1:01
  Dollar
• 1:01
  General's
• 1:02
  fresh
• 1:02
  rollout
• 1:02
  slowdown
• 1:03
  just
• 1:03
  an
• 1:03
  example
• 1:04
  of
• 1:04
  good
• 1:04
  capital
• 1:05
  allocation
• 1:05
  or
• 1:06
  do
• 1:06
  you
• 1:06
  think
• 1:06
  there's
• 1:06
  more
• 1:07
  going
• 1:07
  on
• 1:07
  here?
• 1:09
  I
• 1:09
  think
• 1:09
  it's
• 1:09
  a
• 1:10
  little
• 1:10
  bit
• 1:10
  of
• 1:10
  both,
• 1:10
  Chris.
• 1:11
  I
• 1:11
  think
• 1:12
  that,
• 1:12
  number
• 1:12
  one,
• 1:13
  this
• 1:13
  shows
• 1:13
  me
• 1:13
  that
• 1:13
  operating
• 1:14
  a
• 1:14
  grocery
• 1:15
  concept,
• 1:15
  especially
• 1:16
  one
• 1:16
  that
• 1:16
  includes
• 1:17
  fresh
• 1:17
  produce,
• 1:18
  isn't
• 1:19
  as
• 1:19
  easy
• 1:19
  as
• 1:19
  it
• 1:20
  might
• 1:20
  seem.
• 1:20
  And
• 1:21
  even
• 1:21
  though
• 1:21
  you
• 1:22
  have
• 1:22
  the
• 1:22
  best
• 1:22
  financial
• 1:23
  modelers
• 1:23
  at
• 1:24
  Dollar
• 1:24
  General,
• 1:24
  I
• 1:25
  think
• 1:25
  you
• 1:25
  still
• 1:26
  can't
• 1:26
  predict,
• 1:27
  you
• 1:27
  know,
• 1:27
  how
• 1:28
  consumers
• 1:28
  buy
• 1:29
  the
• 1:29
  cost
• 1:29
  of
• 1:29
  food,
• 1:30
  like
• 1:30
  inflation.
• 1:32
  Especially,
• 1:32
  you
• 1:32
  know,
• 1:32
  with
• 1:33
  Dollar
• 1:33
  General
• 1:33
  kind
• 1:33
  of
• 1:33
  bringing
• 1:34
  this,
• 1:34
  it's
• 1:34
  still
• 1:34
  relatively
• 1:35
  new
• 1:36
  to
• 1:36
  some
• 1:36
  of
• 1:36
  the
• 1:37
  Dollar
• 1:37
  General
• 1:37
  stores
• 1:38
  being
• 1:38
  able
• 1:38
  to
• 1:38
  purchase
• 1:38
  these
• 1:39
  things.
• 1:39
  So
• 1:40
  I
• 1:40
  actually
• 1:40
  think
• 1:41
  that,
• 1:41
  you
• 1:41
  know,
• 1:41
  they've
• 1:42
  already
• 1:42
  got
• 1:42
  a
• 1:42
  good
• 1:43
  pilot
• 1:43
  going
• 1:43
  with
• 1:43
  5,000
• 1:44
  stores
• 1:45
  and
• 1:45
  I
• 1:45
  think
• 1:45
  they're
• 1:46
  smart
• 1:46
  to
• 1:46
  kind
• 1:46
  of
• 1:47
  slow
• 1:48
  roll
• 1:48
  the
• 1:48
  rest
• 1:48
  of
• 1:48
  the
• 1:49
  rollout
• 1:49
  because
• 1:50
  they,
• 1:50
  they're
• 1:50
  still
• 1:51
  learning
• 1:51
  from
• 1:51
  it
• 1:51
  and
• 1:51
  they're
• 1:52
  still
• 1:52
  having
• 1:52
  to
• 1:53
  develop.
• 1:53
  And
• 1:53
  like
• 1:54
  I
• 1:54
  said
• 1:54
  at
• 1:54
  the
• 1:54
  beginning,
• 1:55
  like
• 1:55
  there's,
• 1:55
  it's
• 1:55
  still
• 1:55
  a
• 1:55
  very
• 1:56
  volatile
• 1:56
  and
• 1:56
  low
• 1:57
  margin
• 1:57
  industry
• 1:58
  grocery.
• 1:58
  So
• 1:58
  I
• 1:58
  think
• 1:59
  like,
• 1:59
  you
• 1:59
  have
• 1:59
  to
• 1:59
  be
• 2:00
  really
• 2:01
  able
• 2:01
  to
• 2:02
  flex
• 2:02
  and
• 2:03
  learn
• 2:03
  as
• 2:04
  you
• 2:04
  continue
• 2:04
  to
• 2:04
  expand,
• 2:05
  especially
• 2:05
  at
• 2:05
  the
• 2:05
  pace
• 2:06
  that
• 2:06
  they
• 2:06
  were
• 2:06
  going
• 2:06
  to
• 2:06
  do
• 2:06
  that.
• 2:07
  So
• 2:07
  I'd
• 2:07
  be
• 2:07
  doing
• 2:08
  the
• 2:08
  same
• 2:08
  thing
• 2:08
  if
• 2:08
  I
• 2:09
  was
• 2:09
  Dollar
• 2:09
  General.
• 2:09
  I'd
• 2:10
  be
• 2:10
  kind
• 2:10
  of
• 2:10
  phasing
• 2:11
  this
• 2:11
  out
• 2:11
  slowly.
• 2:13
  And
• 2:13
  the
• 2:14
  other
• 2:14
  thing
• 2:14
  I'd
• 2:14
  be
• 2:14
  watching
• 2:15
  too
• 2:15
  is,
• 2:15
  you
• 2:15
  know,
• 2:15
  as
• 2:16
  Walmart
• 2:16
  is
• 2:17
  still,
• 2:17
  still
• 2:17
  gaining
• 2:17
  share
• 2:18
  in
• 2:18
  grocery
• 2:18
  and
• 2:18
  that's
• 2:19
  a
• 2:19
  lot
• 2:19
  of
• 2:19
  the
• 2:19
  other
• 2:20
  retailers
• 2:20
  that's
• 2:21
  closest
• 2:21
  to
• 2:21
  people
• 2:21
  in
• 2:21
  these
• 2:22
  Dollar
• 2:22
  General
• 2:22
  geographies,
• 2:23
  like
• 2:24
  that's
• 2:24
  something
• 2:24
  their
• 2:25
  low,
• 2:25
  low
• 2:25
  pricing
• 2:26
  is
• 2:26
  something
• 2:26
  that
• 2:26
  you're
• 2:26
  going
• 2:26
  to
• 2:27
  have
• 2:27
  to
• 2:27
  contend
• 2:27
  with,
• 2:27
  too.
• 2:28
  So
• 2:28
  that's
• 2:28
  something
• 2:28
  else
• 2:29
  that
• 2:29
  kind
• 2:29
  of
• 2:29
  plays
• 2:30
  into
• 2:30
  this
• 2:30
  as
• 2:30
  a.
• 2:30
  As
• 2:31
  a
• 2:31
  tertiary
• 2:31
  factor.
• 2:32
  So
• 2:32
  I
• 2:33
  think
• 2:33
  it's.
• 2:34
  It's
• 2:34
  both
• 2:35
  like
• 2:36
  modeling
• 2:36
  the
• 2:37
  financial
• 2:37
  component
• 2:38
  of
• 2:38
  this
• 2:38
  and
• 2:38
  then
• 2:39
  figuring
• 2:39
  out
• 2:40
  operations
• 2:40
  of.
• 2:41
  Of
• 2:41
  running
• 2:41
  a
• 2:42
  grocery
• 2:42
  concept
• 2:42
  inside
• 2:43
  of
• 2:43
  a
• 2:43
  dollar
• 2:44
  store.
• 2:44
  But
• 2:45
  where
• 2:45
  do
• 2:45
  you.
• 2:45
  What
• 2:45
  do
• 2:45
  you
• 2:46
  think
• 2:46
  about
• 2:46
  this?
• 2:46
  I
• 2:46
  mean,
• 2:46
  is
• 2:46
  this.
• 2:47
  Do
• 2:47
  you
• 2:47
  think
• 2:47
  it's.
• 2:48
  It
• 2:49
  can
• 2:49
  be
• 2:49
  modeled
• 2:50
  correctly?
• 2:50
  Like,
• 2:50
  where.
• 2:51
  What
• 2:51
  do
• 2:51
  you
• 2:51
  think?
• 2:51
  Yeah.
• 2:51
  Yeah.
• 2:52
  No.
• 2:52
  Yeah.
• 2:52
  In
• 2:53
  reality,
• 2:53
  the
• 2:53
  question
• 2:53
  I
• 2:53
  ask
• 2:53
  you
• 2:53
  is
• 2:54
  kind
• 2:54
  of
• 2:54
  silly,
• 2:54
  you
• 2:54
  know,
• 2:55
  because
• 2:55
  in
• 2:55
  reality,
• 2:56
  like,
• 2:56
  if
• 2:56
  you're
• 2:56
  gonna.
• 2:56
  If
• 2:56
  you're
• 2:56
  gonna
• 2:57
  reallocate
• 2:57
  your
• 2:57
  capital,
• 2:58
  it's
• 2:58
  probably
• 2:59
  both.
• 2:59
  Right.
• 2:59
  It's
• 2:59
  probably.
• 3:00
  It's
• 3:00
  clearly
• 3:01
  not
• 3:01
  doing
• 3:01
  or
• 3:01
  not
• 3:02
  producing
• 3:02
  the
• 3:02
  ROI
• 3:03
  that
• 3:03
  they
• 3:03
  initially
• 3:04
  thought
• 3:04
  it
• 3:04
  was.
• 3:04
  And
• 3:05
  so
• 3:05
  especially
• 3:05
  compared
• 3:06
  to
• 3:06
  the
• 3:06
  standard
• 3:06
  remodels.
• 3:07
  So
• 3:07
  they're
• 3:07
  reinvesting
• 3:07
  their
• 3:08
  capital.
• 3:08
  They're
• 3:08
  smart
• 3:09
  and,
• 3:09
  you
• 3:09
  know,
• 3:09
  and
• 3:10
  I
• 3:10
  think.
• 3:10
  And
• 3:10
  is
• 3:10
  that
• 3:10
  common,
• 3:11
  Chris?
• 3:11
  Like,
• 3:11
  you
• 3:12
  worked
• 3:12
  on
• 3:12
  Fresh,
• 3:13
  like
• 3:13
  putting
• 3:13
  Target
• 3:14
  Fresh
• 3:14
  together.
• 3:14
  Like,
• 3:14
  where
• 3:15
  does.
• 3:15
  How
• 3:15
  does
• 3:15
  that.
• 3:16
  It's
• 3:16
  actually.
• 3:17
  It's
• 3:17
  actually
• 3:17
  not
• 3:18
  that
• 3:18
  common,
• 3:18
  I
• 3:18
  would
• 3:18
  say,
• 3:19
  because
• 3:19
  retailers
• 3:20
  double
• 3:20
  down
• 3:21
  on
• 3:21
  things
• 3:21
  they've
• 3:21
  said,
• 3:22
  so
• 3:22
  actually
• 3:22
  give
• 3:22
  a
• 3:23
  lot
• 3:23
  of
• 3:23
  kudos
• 3:23
  to
• 3:24
  them
• 3:24
  for
• 3:24
  saying,
• 3:24
  okay,
• 3:25
  you
• 3:25
  know,
• 3:25
  we're
• 3:25
  still
• 3:25
  going
• 3:25
  to
• 3:26
  do
• 3:26
  it.
• 3:26
  We're
• 3:26
  going
• 3:26
  to
• 3:26
  slow
• 3:26
  it
• 3:26
  down.
• 3:27
  We're
• 3:27
  going
• 3:27
  to
• 3:27
  do
• 3:27
  it
• 3:27
  in
• 3:27
  the
• 3:27
  stores.
• 3:27
  We
• 3:28
  think,
• 3:28
  you
• 3:28
  know,
• 3:28
  we're
• 3:29
  still
• 3:29
  going
• 3:29
  to
• 3:29
  do
• 3:29
  300
• 3:29
  stores.
• 3:29
  We're
• 3:29
  going
• 3:30
  to
• 3:30
  do
• 3:30
  it
• 3:30
  in
• 3:30
  the
• 3:30
  stores
• 3:30
  where
• 3:30
  I
• 3:30
  think
• 3:30
  it's
• 3:31
  going
• 3:31
  to
• 3:31
  have
• 3:31
  the
• 3:31
  biggest
• 3:31
  impact.
• 3:32
  The
• 3:32
  other
• 3:32
  thing
• 3:32
  I'll
• 3:32
  say,
• 3:32
  because
• 3:32
  I
• 3:33
  think
• 3:33
  we
• 3:33
  talked
• 3:33
  about
• 3:33
  this
• 3:33
  when
• 3:34
  they
• 3:34
  first
• 3:34
  announced
• 3:34
  the
• 3:34
  strategy.
• 3:35
  Zach
• 3:35
  Brining
• 3:36
  is
• 3:36
  there.
• 3:36
  He's
• 3:37
  former
• 3:37
  army
• 3:37
  star
• 3:38
  Zach
• 3:38
  Brining.
• 3:38
  He
• 3:39
  was
• 3:39
  actually
• 3:39
  in
• 3:39
  charge
• 3:39
  of
• 3:40
  Targets
• 3:40
  Fresh
• 3:40
  rollout.
• 3:41
  So.
• 3:41
  So
• 3:41
  they
• 3:42
  have
• 3:42
  people
• 3:42
  inside
• 3:42
  Dollar
• 3:43
  General
• 3:43
  that
• 3:43
  know
• 3:44
  how
• 3:44
  to
• 3:44
  do
• 3:44
  this
• 3:44
  as
• 3:44
  well
• 3:45
  as
• 3:45
  anyone
• 3:45
  out
• 3:46
  there.
• 3:47
  So
• 3:47
  I
• 3:47
  just
• 3:47
  think.
• 3:47
  I
• 3:48
  just
• 3:48
  think
• 3:48
  Net
• 3:48
  Net.
• 3:48
  To
• 3:49
  me,
• 3:49
  it
• 3:49
  actually
• 3:50
  feels
• 3:50
  like
• 3:50
  a
• 3:50
  smart
• 3:51
  move
• 3:51
  on
• 3:51
  paper.
• 3:52
  And
• 3:52
  I
• 3:52
  don't
• 3:53
  think
• 3:53
  I'd
• 3:53
  read
• 3:53
  anything
• 3:54
  more
• 3:54
  into
• 3:54
  it
• 3:54
  than
• 3:55
  that,
• 3:55
  honestly.
• 3:55
  Yeah,
• 3:56
  Yeah.