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Amazon (NASDAQ: AMZN) plans to triple its delivery network by next year, offering same-day and next-day delivery to 4,000 small cities, towns, and communities across rural America. This expansion poses a significant competitive threat to Dollar General (NYSE: DG), which has dominated low-cost retail in these underserved areas.
As Amazon prioritizes fast delivery and utilizes artificial intelligence for inventory management, Dollar General may struggle to maintain its market share, especially given its ongoing challenges with declining profit margins. The dollar store retailer anticipates only 1.5% to 2.5% growth in comparable sales for the current fiscal year, heightening concerns about its long-term viability amid increased competition from Amazon.
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