Dollar General testing new format for urban shoppers

Net rises in Q4, FY

Goodlettsville, Tenn.-Add Dollar General to the list of retailers looking at new formats.

The company is in the midst of testing a new format, called DGX. Targeted at urban areas and Millennial shoppers, DGX now numbers two locations, and two others are planned for opening later this year.

DGX is part of Dollar General’s plan—one of four initiatives for 2017—to open 1,000 new stores along with remodeling or relocating 900 stores, ceo Todd Vasos told analysts during this morning’s fourth quester conference call.

The other initiatives are to continue to drive profitable sales growth, reinforce the company’s position as a low-cost operator and investing in its people. About the latter, Vasos said the company has begun a program to increase compensation and training for its store managers.

As difficult as the retail environment was in 2016, Dollar General managed solid gains in income and sales for both its fourth quarter and fiscal year.

Detailing the results during a conference call to financial analysts this morning, Vasos, Dollar singled out home and consumables as key factors in its sales gains.

Net income in the quarter rose 10.1% to $414.2 million, while for the year net income increased 7.4%, to $1.3 billion. Net sales in the quarter rose 13.7% to $6 billion, and for the year net sales reached $22 billion, up 7.9%. Same-store sales in the quarter edged up 1%, while for the year same-store sales gained 0.9%.

For 2017, Dollar General is expecting overall sales growth of from 4 to 6%. Same-store sales should range from slightly positive to up 2%.

Home Textiles Today Staff | News & Commentary

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