Dollar General to Open 1,900 Stores by End of 2017
GOODLETTSVILLE, TN - For Dollar General’s annual investor day on Thursday, the company announced a strategic plan for massive store growth in the coming years. Dollar General revealed that its plan is to open 900 new stores this year, and then another 1,000 in 2017. This would bring the discount retailer’s total all the way up to nearly 15,000 locations.
"Dollar General has a powerful strategic plan that enables us to drive both the top line and bottom line to deliver strong financial returns as outlined in our growth model over the long-term,” said Todd Vasos, Dollar General's Chief Executive Officer in a press release, explaining that the company’s strong cash flow and an efficient capital structure, provides a compelling opportunity to invest for growth.
The success and growth of Dollar General stores, which typically are small enough to occupy a 7,400-square-foot space, may be part of the growing trend of small, discount retailers garnering increased market share. A prime example of this type of store gaining strength is Aldi and its recent expansion into the Southern California market.
These discount retailers have been particularly effective at gaining traction against retail giants like Walmart, which opened a rival 15,000-square-foot store concept, Walmart Express, in 2011. As we’ve previously reported, that plan had been less-than-successful, with the retail giant closing all 102 Wal-Mart Express stores in January.
Dollar General recently completed its 26th straight year of same-store sales increases. The company is targeting annual sales growth of 7% to 10%, with earnings per share growing 10% to 15%.