Dollar General Reports Record Q3 Results

By Anna Rose Welch, Editorial & Community Director, Advancing RNA

With 11,000 stores and counting, company plans aggressive expansion for 2014

Dollar General reported record sales for its third quarter ending November 1. The company’s net income rose 14 percent to $237 million, up from $208 million in 2012’s Q3. Net sales increased 10.5 percent to $4.38 billion, while increased traffic and average transaction value drove comparable store sales up 4.4 percent. A large amount of this growth is being attributed to consumable sales, with tobacco products, perishables, candy, and snacks being the most in-demand products during the sales. Considering the quarter ended right after Halloween, it would seem lots of consumers were turning to Dollar General for affordable Halloween treats this year.

ndeed, CEO Rick Dreiling talks up the company’s prices, saying that the low-price strategy “has proven to be a winning formula given our long track record for success. Of the Q3 earnings, Dreiling says, “Dollar General once again delivered strong results in the third quarter, even in the face of an ongoing challenging consumer environment. Our merchandising initiatives have continued to be successful in driving traffic and sales. Looking ahead, while we are cautious on the current macroeconomic trends, we remain excited about the long-term growth prospects for our business.”

In terms of short-term growth, the company, like many others, offered a slew of early holiday promotions to email subscribers a week before Thanksgiving and Black Friday. There were also additional savings available for those who downloaded or had already downloaded the Dollar General smartphone app. By clicking on the “Coupon” link, customers could access same-day, redeemable offers for all their holiday needs.

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As far as long-term growth, Dollar General foresees even more expansions in its future. For the first nine months of the year, the company opened 577 new stores and remodeled or relocated 534 units in its goal of 650 new stores and 550 relocated/remodeled locations. As of November 1, the company operated 11,061, having celebrated its 11,000 store opening in early Oct. In 2014, the company will continue setting records by planning to open 700 more new stores and to remodel/relocate 525 stores, increasing the company’s square footage by 6 to 7 percent.

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