Normally when word comes down that a state Attorney General has its eye on a company’s pricing structure, it is bad news for the company in question. But for discount retail giant Dollar General (DG) that is not the case at all. The Missouri Attorney General is taking aim at Dollar General, but investors were clearly happy, sending shares up nearly 2% in Monday morning’s trading.
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This is a case that has been building for some time, reports note, as in 2022 and 2023, investigators with the Attorney General’s office spent time in 147 different locations. Given that Missouri is home to around 650 locations, this is a pretty fair sample size, statistically. But what the investigators found was a bit alarming.
Investigators checked the prices of over 5,000 different products at those locations, reports noted, and found significant discrepancies therein. For instance, one store had a bottle of Gatorade marked at $1.45. At the register, however, it rang up $1.70. A plastic storage box went from $16.50 on shelves to $18 at the checkout. A range of similar events was uncovered, and the Attorney General’s office sued. It is also looking for Dollar General to pay restitution to impacted customers, as well as surrender what the state called “ill-gotten gains.” Dollar General, not surprisingly, denied this was the case.
Beating Stanley Cup Inflation
Meanwhile, for those looking to beat prices on Stanley cups, there is an alternative awaiting, if you do not mind a little unconventional branding. Dollar General reportedly offers a Dolly Parton-themed Stanley cup alternative. While it may not be a Stanley cup, and it may be a little odd, it offers one serious plus: a massive cost markdown.
Regular Stanley cups can run around $50 each, or more in some cases. But the Dolly tumblers are just $10, for a limited time. The Dolly tumblers are also stainless steel and feature slogans like “Have a Holly Dolly Christmas” and “I (heart) Dolly” with the heart looking like a peppermint drop, likely a reference to the Parton song Hard Candy Christmas.
Is Dollar General Stock a Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on DG stock based on nine Buys and 13 Holds assigned in the past three months, as indicated by the graphic below. After a 24.4% loss in its share price over the past year, the average DG price target of $123.95 per share implies 22.26% upside from current levels.
