Dollar General is opening 900 new stores next year

Contrary to the current Retail Meltdown from excessive retail outlets and online competition, the dollar store model – simplified offerings to meet basic needs, no-frills buildings or service, and continued investment in markets that show good returns – appears to be attractive to low- and high-income shoppers, as well as to investors. They fill a need, especially in more rural markets.

Dollar General is bucking the retail trend.

By the end of the year, more than three in four Americans will live within 5 miles of a Dollar General, the company noted on the call.

Shares of Dollar General (DG) have climbed 25% this year. Dollar Tree (DLTR), its top discount competitor, has risen 38%.

Dollar General has succeeded thanks to its lean business model, said GlobalData Retail analyst Neil Saunders. Its smaller stores sell cheap day-to-day essentials, especially in rural areas where it doesn’t make sense for Walmart or other large retailers to open up shop.

“The company [is] the closest and most convenient general merchant for millions,” said Saunders.

Sales were up 4.3% last quarter at stores that were open a year ago, a sign of retail health. Revenue last quarter ballooned to $5.9 billion — an 11% uptick from last year — in part from hurricane-related spending in Texas and Florida.

More middle income and affluent shoppers are helping lift Dollar General’s overall sales. The expansion, especially in metro areas, will allow it to continue reaching these shoppers, said Saunders.

But lower-income Americans remain the store’s primary customers. The stores attracted shoppers during the economic downturn in 2008 and 2009, and consumers haven’t stopped coming back since, even as the economy has picked up steam.

Wildfires are becoming more destructive. A new book says that’s not natural — and it’s not climate change

“Flame and Fortune in the American West,” a book by University of Colorado Denver professor Gregory Simon argues that increasing devastation by fire is a result of building homes and businesses in unwise places, rather than the easy scapegoat of ‘climate change’. An interview with the author discusses economics and development patterns that increase fire risk at the urban boundary:

“One objective of the book is to say, look, you can change land use planning in this way or that way, you can change the rules, you can change development to reduce fire risks and costs. But the other part of the book is concerned with how we talk about fire. I argue that when we suggest the problem is caused mainly by climate change and environmental factors we are actually exonerating — unfairly — the role of humans and city developers in creating these risks in the first place …  We keep spreading cities farther and farther out and I think that needs to be part of the discourse. Fires disasters aren’t natural, they’re very social.

I propose ways in which we can slow down this process of converting landscape, and adding risk to the landscapes and extracting profits from landscapes, by doing things like taking land out of availability through conservation easements or making development more costly, whether that means reducing fire protection services or reducing home ownership incentives.”

Energized by Changes in Demographics and Consumer Demand, U.S. Suburbs are Positioned to Thrive in the Decades Ahead, Says New ULI Report

A December 5, 2016 report, Housing in the Evolving American Suburbprovides a new analytic framework developed by RCLCO for the ULI Terwilliger Center for Housing that describes different kinds of suburbs based on the key factors that define and determine their housing markets. The report classifies and compares suburbs in the 50 largest metro areas in the U.S. – shown in a searchable online map – and assesses the key issues that will shape suburban residential demand and development in the years ahead.

Terwilliger Center Executive Director Stockton Williams says, “The capacity of American suburbs to evolve with the economic and demographic transformations the country is experiencing will be one of the central real estate and land use issues of the 21st century.” 

The Sprawl Repair Manual

Sprawl Repair Manual

The Sprawl Repair Manual presents a comprehensive methodology for transforming sprawl developments into human-scale, sustainable communities. In this richly illustrated book, Galina Tachieva draws on more than two decades of experience to provide a step-by-step process of design, regulatory, and implementation techniques for reurbanizing and rebalancing suburbia.
Her solutions will inspire and equip anyone looking to reimagine suburban development.

The Sprawl Repair Manual is so far the only complete physical planning manual for handling the impending transformation of suburbia into vital human communities. It is not only hugely instructive but formidably inspirational.

—Leon Krier, Master Planner of Prince Charles’ Poundbury Project in Dorset, UK and author of The Architecture of Community