Dollar General expects to open 800 new stores in fiscal 2024,along with2,000 remodels and 120 store relocations.
Dollar General reported better-than-expected third-quarter earnings and revenue as price-conscious consumers shopped its stores for groceries and other essentials.
However, in the earnings release, CEO ToddVasos said he was “not satisfied” with the company’s third-quarter results, including a significant headwind from inventory shrink.
“Over the last several weeks, we have spent significant time reviewing all areas of the business, and we have identified key opportunities for improvement both in the near term and over the longer term,” said Vasos, who returned as CEO in October, after serving in the role from June 2015toNovember 2022.
On the chain’s earnings call, Vasos outlined plans that include increasingupfront store staff at the checkout area, which he said should help with shrink. The company is also looking to get products to store shelves faster by reallocating labor investments toward store-level inventory-management processes.
[Read more: "Is Shrink From Self-Checkout Lanes Worse Than Grocers Think?"]
The extreme discounter said it expects to open 800 new stores (down from an expected 990 openings in 2023) in fiscal 2024,along with2,000 remodels and 120 store relocations.
“This is a modest slow down compared to the number of projects in recent years, which we believe is prudent in this environment,” stated Vasos. The openings will include more stores in rural areas and an emphasis on its larger format.
Dollar General reported net income of $276.2 million, or $1.26 a share, for the quarter ended, down from $526.2 million, or $2.33 a share, in the year-ago period. Analysts had expected earnings per share of $1.20.
Sales rose 2.4% to $9.694 billion, topping estimates of $9.644 billion.Same-store sales fell 1.3%,driven by a decline in average transaction amount. The decrease was partially offset by an increase in customer traffic.
“We are pleased with the momentum in some of the underlying sales trends, including positive customer traffic, as well as market share gains in both dollars and units,” Vasos stated. “We continue to believe our model is relevant in all economic cycles, and we are working diligently to further enhance our unique combination of value and convenience.”
As of Nov. 3, 2023, total merchandise inventories, at cost, were $7.4 billion compared to $7.1 billion as of a year ago, a decrease of 1.8% on a per-store basis.
During the third quarter, Dollar General opened 263 new stores, remodeled 545 stores, and relocated 44 stores.
As of Nov. 3, Goodlettsville, Tenn.-basedDollar General operated 19,726 Dollar General, DG Market, DGX and PopShelf stores across the U.S. and Mi Súper Dollar General stores in Mexico. The company is No. 16 on The PG 100, Progressive Grocer’s 2023 list of thetop food and consumables retailers in North America.
This article first appeared on the site of sister publication Chain Store Age.
FAQs
Dollar General, based in Goodlettsville, Tennessee, reiterated its plans Thursday to execute 2,385 real estate projects in fiscal 2024, including the opening of 800 stores, remodeling 1,500 and relocating 85 stores.
What is the future of Dollar General? ›
Dollar General forecast 2024 sales to grow between 6.0% and 6.7%, above analysts' estimate of 4.4% growth to $40.33 billion, according to LSEG data.
What is Dollar General changing their name to? ›
In an effort to cater to customers who want a more upscale shopping experience, Dollar General is opening retail locations that operate under a different brand. These stores are called pOpshelf, and they're meant to appeal to wealthier and more suburban customers.
Are Dollar General Dollar Tree and Family Dollar owned by the same company? ›
Dollar Tree acquired Family Dollar in 2015 for over $8 billion after a bidding war with Dollar General, but Wednesday's earnings report signals difficulty in maintaining the value of both brands.
Is Dollar General being bought out? ›
An investment group consisting of affiliates of Kohlberg Kravis Roberts (KKR), GS Capital Partners (an affiliate of Goldman Sachs), Citigroup Private Equity, and other co-investors completed an acquisition of Dollar General Corporation for $6.9 billion.
What is the Dollar General revenue for 2024? ›
Dollar General Revenue (Annual): 38.69B for Jan. 31, 2024.
Why is Dollar General struggling? ›
Both companies said inflation and shoplifting have contributed to their troubles. While inflation has pressured the companies' low-income customer base and shoplifting has squeezed their profits, those factors alone can't explain their difficulties.
What is the Dollar General q3 report? ›
Third Quarter 2023 Highlights
Net sales increased 2.4% to $9.7 billion in the third quarter of 2023 compared to $9.5 billion in the third quarter of 2022.
What is the Dollar General controversy? ›
Dollar General is stealing from their customers. They put one price on items and charge another—higher—price at the register. It's a major scam that's siphoning hundreds of millions of dollars from the poorest people in America.
What is the difference between Dollar General and pOpshelf? ›
Popshelf stores are roughly 9,000 square feet and carry items such as home goods, seasonal decor and party supplies, including items from Dollar General's private brands. Dollar General debuted a new store called Popshelf about a year ago, aimed at wealthier, suburban shoppers who enjoy the hunt for a good deal.
As of March, 2024, there are 18912 Dollar General stores in the United States. These stores are located in 48 states and territories and 8008 cities. The state with the most Dollar General locations is Texas, with 1947 stores. This is about 10% of all Dollar General locations in the United States.
What does Dollar General stand for? ›
Dollar General stands for convenience, quality brands and low prices. Dollar General's stores aim to make shopping a hassle-free experience. We design small, neighborhood stores with carefully -edited merchandise assortments to make shopping simpler.
What is the future of the Dollar General? ›
In fiscal year 2023, Vasos said Dollar General moved on over 3,000 real estate projects. That included 987 new stores, 129 relocations and 2,007 remodels. The retailer is projecting stronger sales growth next year, with guidance calling for sales growth in the range of 6% to 6.7%.
Why did Dollar General employees quit? ›
The workers wrote on the signs that the entire team quit due to a "lack of appreciation, being overworked, and being underpaid." Take this as notice that we the team at store 20610 located in Mineral Point, WI all quit!" another note reads.
Who is merging with Dollar Tree? ›
Two Great Stores, One Big Deal
It's two great stores coming together under one roof — Family Dollar, ready to meet your family's needs, alongside Dollar Tree, with its thrilling offerings in seasonal, party, and crafting — to help you celebrate life's occasions.
Is Dollar General financially stable? ›
Dollar General Balance Sheet Health
Dollar General has a total shareholder equity of $6.7B and total debt of $7.0B, which brings its debt-to-equity ratio to 103.7%. Its total assets and total liabilities are $30.8B and $24.0B respectively. Dollar General's EBIT is $2.5B making its interest coverage ratio 7.5.
How fast is Dollar General growing? ›
Dollar General has had explosive growth over the depicted period, more than doubling their store count from 8,194 to 19,147 in 2022. In fact, Dollar General was the leading retailer with the most store locations in the United States in 2021.
What is Dollar General price forecast? ›
DG Stock 12 Month Forecast
Based on 21 Wall Street analysts offering 12 month price targets for Dollar General in the last 3 months. The average price target is $159.16 with a high forecast of $190.00 and a low forecast of $118.00. The average price target represents a 12.08% change from the last price of $142.00.
Are Dollar General buildings a good investment? ›
Evaluating all the pros and cons, one can be sure that sinking money into Dollar General properties is your low-risk chance, stable and profitable, to experience all the benefits of a triple net lease and earn good money.
