Dollar General testing new format for urban shoppers
March 16, 2017,
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.
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%.
Related Content By Author
The Countdown to the ICON Honors Continues featuring Christophe Pourny