Dollar General Corporation (DG)

Sector: Consumer Staples|Industry: Discount Stores|Market Cap: $16.42B|Employees: 185.8K


Dollar General is the largest discount retailer in the United States by store count, operating over 20,000 stores across 48 US states and Mexico. The company offers a broad selection of merchandise, including consumable items, seasonal items, home products, and apparel, at everyday low prices, leveraging both national brands and its own private labels. Dollar General's competitive advantage lies in its convenient small-box store format and low-cost operating structure, allowing it to serve both small and large markets.

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Business Summary

Dollar General Corporation is the largest discount retailer in the United States by store count, operating over 20,000 stores across 48 states and Mexico. The company offers a wide variety of merchandise, including consumable items, seasonal products, home goods, and apparel, at everyday low prices. Dollar General's core business model focuses on providing value and convenience to its customers through small-box stores located in rural, suburban, and urban communities. The company's competitive advantages include its low-cost operating structure, focused merchandise assortment, and convenient store locations.

Key Statistics

  • Employees: 185,800 (as of March 1, 2024)
  • Geographic Footprint: 48 U.S. states and Mexico
  • Headquarters: Goodlettsville, TN
  • Founded: 1939
  • Number of locations/facilities: 20,022 stores (as of March 1, 2024)
  • Revenue: $38.7 billion (FY2023)
  • Key Subsidiaries/Brands: pOpshelf, Mi Súper Dollar General, Clover Valley, trueliving, Rexall, Believe Beauty

Leadership

  • CEO: Todd J. Vasos
  • CFO: Kelly M. Dilts
  • Executive Vice President, Store Operations and Development: Steven R. Deckard
  • Executive Vice President and Chief People Officer: Kathleen A. Reardon
  • Executive Vice President and Chief Merchandising Officer: Emily C. Taylor
  • Executive Vice President and General Counsel: Rhonda M. Taylor
  • Executive Vice President and Chief Information Officer: Carman R. Wenkoff
  • Executive Vice President, Global Supply Chain: Roderick J. West
  • Senior Vice President and Chief Accounting Officer: Anita C. Elliott

Todd J. Vasos has served as CEO since October 2023, previously serving from June 2015 to November 2022. Kelly M. Dilts joined as CFO in May 2023. Other executives have extensive experience within Dollar General and the retail industry.

Key Financial Metrics

  • Annual Revenue: $38.7 billion (FY2023)
  • Net Income: $1.7 billion (FY2023)
  • Total Assets: $30.8 billion (as of February 2, 2024)
  • Employees: 185,800 (as of March 1, 2024)
  • Key Financial Highlights: Same-store sales increased by 0.2% in 2023. Gross profit rate decreased by 94 basis points. Operating profit decreased 26.5% year-over-year.

Products and Services

Dollar General offers a focused assortment of everyday necessities and general merchandise.

  • Consumables: Includes paper and cleaning products, packaged food, perishables, snacks, health and beauty, pet supplies, and tobacco products.
  • Seasonal: Includes holiday items, toys, batteries, small electronics, greeting cards, stationery, prepaid phones, gardening supplies, hardware, automotive, and home office supplies.
  • Home Products: Includes kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies, and kitchen, bed, and bath soft goods.
  • Apparel: Includes basic items for infants, toddlers, girls, boys, women, and men, as well as socks, underwear, disposable diapers, shoes, and accessories.

Key Business Segments

Dollar General operates as a single reportable segment, focusing on retail sales of general merchandise. The company does not provide a revenue breakdown by specific business divisions or segments.

Business Strategy

Dollar General's strategic priorities include driving profitable sales growth, capturing growth opportunities, enhancing its position as a low-cost operator, and investing in its diverse teams. Key initiatives include expanding store formats, enhancing digital tools, growing the private brand portfolio, and optimizing the supply chain. The company is also focused on improving store standards, reducing shrink and damages, and enhancing the customer experience. The company is also focused on international expansion with an initial focus on Mexico.

Industry Context

Dollar General operates in the highly competitive discount retail market, facing competition from various retailers, including discount stores, mass merchandise, warehouse clubs, grocery stores, drug stores, convenience stores, online retailers, and specialty stores. Key competitors include Family Dollar, Dollar Tree, Big Lots, Walmart, Target, Kroger, Aldi, Walgreens, and CVS. The company differentiates itself through its convenient, small-store format and everyday low prices. The company does not provide specific market share information.

Risk Factors

  • Economic Factors: Changes in economic conditions, such as inflation, unemployment, and government assistance programs, can reduce customers' disposable income and negatively affect sales and profitability.
  • Strategic and Competitive Risks: Failure to successfully execute strategic initiatives, intense competition, and changes in consumer preferences could limit growth opportunities and adversely affect results.
  • Operational Risks: Challenges in executing real estate projects, managing inventory, and maintaining the security of business, customer, employee and vendor information can negatively impact financial performance.
  • Supply Chain Risks: Disruptions in the distribution network, reliance on key suppliers, and risks associated with international sourcing could increase costs and reduce profitability.
  • Regulatory and Legal Risks: Changes in governmental regulations, compliance requirements, and legal proceedings could increase operating costs and affect financial performance.

Last Updated

2024-03-25

(Generated from latest 10-K filing)