Survey: Dollar General beats Walmart as low-price leader

Dollar General has once again bested Walmart for the title of low-price leader, according to a pricing study by Sterne Agee analyst Charles Grom.

The pricing study compared shopping baskets at Dollar General (NYSE:DG), Walmart (NYSE:WMT) and Family Dollar (NYSE:FDO). Dollar General's basket was 40 basis points, or 0.4 percent, lower than Walmart's.

Grom noted the razor thin gap between the two retailers, one that continues to narrow. There was a time when Walmart's prices were as much as 12 percent lower than those at deep discounters, or dollar stores, according to Investor's Business Daily.
The current study is a follow up to a similar price comparison conducted in April and in both, deep-discounter Dollar General led with the lowest basket price. Agee launched the program following Family Dollar's announcement earlier this year that it was embarking on a $50 million program to reduce prices on 1,000 SKUs.

The competitive maneuver has resulted in lower prices at Family Dollar. The overall basket price was just 0.4 percent higher than Dollar General's, compared to May when it was 5.3 percent.

Both Dollar General and Walmart showed a slight increase in total basket prices from the earlier report.

For more:
-See this Investor's Business Daily story

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