WMT: Taking Over

Wal-Mart is an engine that shows no sign in slowing up. Now that it has swallowed up all the Mom and Pop stores it is looking for its next target to take down. It has zeroed in on dollar stores like Dollar General (DG) and Dollar Tree (DLTR). Wal-Mart has now opened up 3 Wal-Mart Express stores near its headquarter in Bentonville, Arkansas that look to compete directly with the dollar stores. These stores are basically a smaller version on the mega-mart that can fit into spaces where a traditional store would be too large. The Wal-Mart Express stores have been dominating the market and look to put other stores out of business. Wal-Mart already controls the affordable retail market and is now looking to take the cheap goods market currently controlled by dollar stores. From what I have heard the Wal-Mart Express stores are extremely popular and, being Wal-Mart, their margins are better than that of Dollar Tree and Dollar General. I would recommend stock in Wal-Mart on this news and believe for the foreseeable future Wal-Mart's stock will perform very well. I would also sell my positions in Dollar General and Dollar Tree but also I would look to Wal-Mart Express to take on Drug stores like CVS and Walgreen's.