The dollar store industry has dominated value retailing recently. Over the last four years, Dollar General has increased their sales by 35% and their market cap by well over 100% to $16 billion, while JCPenney sales have declined by 26% and their market cap has declined dramatically from the high of $11.9 billion in 2009 to $3 billion today. For the dollar store industry, and especially Dollar General, it comes down to having a clear position in the market and making significant investments to drive growth.
When he decided to drive such dramatic change to the point where his customers said no! The recent announcement of Ron Johnson being pushed out at JCPenney is another example of an organization losing sight of who their customer is and why they shop with them.