Dollar General stores multiplying, reporting higher sales than competitors
On October 5th, Dollar General opened its 11,000th store in Munfreesboro, TN. This growth will continue throughout the remainder of the year, as Dollar General anticipates opening 650 stores in 2013 and creating 6,000 new jobs. In fact, according to a press release detailing second quarter financial results, Dollar General opened 375 new stores in the 26-week period ending August 2. Since 2007, Dollar General —the retailer with the most stores in the United States — has created nearly 30,000 new jobs. In honor of the grand opening, Dollar General donated $11,000 to schools and community organizations to support literacy initiatives.
This milestone is coupled with good news from Dollar General Corporation’s 2013 second quarter financial results. Dollar General reported record second quarter results, with same-store sales increasing 5.1 percent because of heightened customer traffic and average transaction value — no easy feat considering top competitors Family Dollar and Dollar Tree both reported Q2 sales growth up 2.9 and 3.7 percent respectively. This increase is attributed to a roll out of tobacco products in Dollar General stores as well as increasing apparel and seasonal sales. Total sales also increased 11.3 percent to $4.39 billion, a higher value than the second quarter of 2012 when total sales equaled $3.95 billion. Net income rose by 15 percent, reaching $245 million, compared to the $214 million dollars reported in 2012’s second quarter.
The press release also highlights the 26-week period results, revealing that net sales increased 9.9 percent to $8.63 billion and same store sales increased 3.8 percent. Looking into the future, Dollar General expects total sales to increase by 10-11 percent over 2012’s results, however executives are forewarning investors and analysts to expect slightly lower margins in the third and fourth quarters. According to Rick Dreiling, chairman and CEO, “There’s more top-line upside to come, because for many of Dollar General’s shoppers, the recession never ended.”