"Dollar stores" are coming to Europe

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"Dollar stores" are coming to Europe

13 July 2021

What readers said about this report

So-called "dollar stores" have long been the fastest-growing, most profitable part of the US retail industry. "Dollar stores" are stores that sell a wide range of goods at low prices, typically for one dollar or less. New such brick-and-mortar stores are opened at a record pace, and Amazon cannot compete with them.

Despite the low-pricing strategy, the US' leading dollar store chains have made fortunes for their shareholders.

Dollar General, the market leader, is up 10 times since it went public in 2009. Dollar Tree, the #2, is up 80 times since 1995.

Will the success of dollar stores repeat itself in Europe?

Which company will be the likely winner?

Most deep-discount retailers in Europe are in private hands, because their owners don't want to share the spoils (Aldi, Lidl, Home Bargains, Action). Today's report analyses one of the few publicly-listed European companies that lets you benefit from this retail trend.

It is probably one of the best-run businesses you have never heard of.

During the 2020s, this company could grow by a factor of 4-7 times. If the economy turns sour, inflation ramps up or the middle class hurts – it will do all the better!

While you wait for this growth story to unfold, you get to bag a dividend yield of over 5%.

And with a liquid listing on the London Stock Exchange, it's easy to buy and sell its stock.

Curious to learn more?

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|  What readers said about this report

Gene G.
July 2021

That was a very nice report on (company name hidden by Undervalued-Shares.com). Looks like a promising growth play. Thank you.

Philip T.
July 2021

The anecdotal evidence [from personal observation] supports your thesis and there are lots of similar success stories in other segments. So for me this looks like a promising candidate to initiate a small tracking position to get a foot into the door (and overcome FOMO) and then dig deeper.

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"Dollar stores" are coming to Europe

This company is one of the few publicly-listed European companies that lets you benefit from the deep-discount retail trend.

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