netrashetty
Netra Shetty
Dollar General Corp. is a chain of variety stores operating in 35 U.S. states. The chain operates over 9,000 stores[2] and is headquartered in Goodlettsville, Tennessee, a suburb of Nashville. The stores were founded in 1939 by Cal Turner in Scottsville, Kentucky as J.L. Turner & Son, Inc. In 1968 they changed the name to Dollar General Corporation. As of the third fiscal quarter of 2007, the company was acquired by Kohlberg Kravis Roberts & Co. (KKR), a private equity firm, who took the company public in 2009.[3][dead link]
Dollar General stores are typically in small shopping plazas or strip malls in local neighborhoods. The company acquired the 280 stores of the P.N. Hirsh Division of Interco, Inc. (now Furniture Brands International, Inc.) in 1983 and in 1985 added 206 stores and a warehouse from Eagle Family Discount Stores, also from Interco, Inc. In recent years, the chain has started constructing more stand-alone stores, typically in areas not served by another general-merchandise retailer. In some cases, stores are within a few city blocks of each other.
Dollar General offers both name brand and generic merchandise — including off-brand goods and closeouts of name-brand items — in the same store, often on the same shelf.
Dollar General Corporation (NYSE: DG) is the largest discount retailer in the United States. Dollar General competes with other discount retailers, such as Family Dollar Stores (FDO) and Dollar Tree Stores (DLTR), as well as wholesale retailers such as Wal-Mart (WMT) and Target (TGT).
Business Overview
Business Financials
Dollar General launched its Initial Public Offering (IPO) in November 2009, selling $34.1 million shares at $21 per share.[1]
Financial Metric 2007 2008 2009 2010
Revenue ($MM) 9,169.82 9,495.25 10,457.67 11,796.38
Operating Income ($MM) 248.28 255.39 580.49 953.26
Net Income ($MM) 137.94 (12.82) 108.18 339.44
[2]
Fiscal 2009 Performance (Ended January 29,2010)
Dollar General realized most of its profits during the Holiday Season.
Business Segments
Consumables (70.84% of 2009 net sales)
Since 2008, Dollar General has increased the number of private brand items it carries, and now carries over 1,300 such items.[2] From fiscal 2008 to fiscal 2009, Consumables net sales increased 15.3%.[2]
Seasonal (14.51% of 2009 net sales)
From fiscal 2008 to fiscal 2009, Seasonal net sales increased 12.5%.[2]
Home Products (7.37% of 2009 net sales)
From fiscal 2008 to fiscal 2009, Home Products net sales increased 0.9%.[2]
Apparel (7.28% of 2009 net sales)
From fiscal 2008 to fiscal 2009, Apparel net sales increased 4.0%.[2]
Trends and Forces
Dollar General Thrives During Economic Crisis
Dollar General plans to continue growth in 2011, as the firm will open 625 more stores and hire 6,000 more employees for the year.[3]
Contents
1 Business Overview
1.1 Business Financials
1.1.1 Fiscal 2009 Performance (Ended January 29,2010)
1.2 Business Segments
1.2.1 Consumables (70.84% of 2009 net sales)
1.2.2 Seasonal (14.51% of 2009 net sales)
1.2.3 Home Products (7.37% of 2009 net sales)
1.2.4 Apparel (7.28% of 2009 net sales)
2 Trends and Forces
2.1 Dollar General Thrives During Economic Crisis
2.2 Discount Retailers Struggle with Variable Costs
3 Competition
3.1 Off-Price Retailers
3.2 Wholesale Retailers
4 References
Discount Retailers Struggle with Variable Costs
Being a dollar store, Dollar General cannot pass increased production costs to consumers.
Competition
Off-Price Retailers
Dollar Tree Stores (DLTR)
Family Dollar Stores (FDO)
Competition Revenue ($MM) Operating Income ($MM) Net Income ($MM) Sales per Store ($MM) Number of Stores
Dollar General Corporation (DG) 11,796.38 953.26 339.44 1.336 8,828
Dollar Tree Stores (DLTR) 5,231.20 512.80 320.50 1.355 3,860
Family Dollar Stores (FDO) 7,866.97 575.60 358.13 1.182 6,655
Wholesale Retailers
Wal-Mart (WMT)
Costco Wholesale (COST)
Dollar General stores are typically in small shopping plazas or strip malls in local neighborhoods. The company acquired the 280 stores of the P.N. Hirsh Division of Interco, Inc. (now Furniture Brands International, Inc.) in 1983 and in 1985 added 206 stores and a warehouse from Eagle Family Discount Stores, also from Interco, Inc. In recent years, the chain has started constructing more stand-alone stores, typically in areas not served by another general-merchandise retailer. In some cases, stores are within a few city blocks of each other.
Dollar General offers both name brand and generic merchandise — including off-brand goods and closeouts of name-brand items — in the same store, often on the same shelf.
Dollar General Corporation (NYSE: DG) is the largest discount retailer in the United States. Dollar General competes with other discount retailers, such as Family Dollar Stores (FDO) and Dollar Tree Stores (DLTR), as well as wholesale retailers such as Wal-Mart (WMT) and Target (TGT).
Business Overview
Business Financials
Dollar General launched its Initial Public Offering (IPO) in November 2009, selling $34.1 million shares at $21 per share.[1]
Financial Metric 2007 2008 2009 2010
Revenue ($MM) 9,169.82 9,495.25 10,457.67 11,796.38
Operating Income ($MM) 248.28 255.39 580.49 953.26
Net Income ($MM) 137.94 (12.82) 108.18 339.44
[2]
Fiscal 2009 Performance (Ended January 29,2010)
Dollar General realized most of its profits during the Holiday Season.
Business Segments
Consumables (70.84% of 2009 net sales)
Since 2008, Dollar General has increased the number of private brand items it carries, and now carries over 1,300 such items.[2] From fiscal 2008 to fiscal 2009, Consumables net sales increased 15.3%.[2]
Seasonal (14.51% of 2009 net sales)
From fiscal 2008 to fiscal 2009, Seasonal net sales increased 12.5%.[2]
Home Products (7.37% of 2009 net sales)
From fiscal 2008 to fiscal 2009, Home Products net sales increased 0.9%.[2]
Apparel (7.28% of 2009 net sales)
From fiscal 2008 to fiscal 2009, Apparel net sales increased 4.0%.[2]
Trends and Forces
Dollar General Thrives During Economic Crisis
Dollar General plans to continue growth in 2011, as the firm will open 625 more stores and hire 6,000 more employees for the year.[3]
Contents
1 Business Overview
1.1 Business Financials
1.1.1 Fiscal 2009 Performance (Ended January 29,2010)
1.2 Business Segments
1.2.1 Consumables (70.84% of 2009 net sales)
1.2.2 Seasonal (14.51% of 2009 net sales)
1.2.3 Home Products (7.37% of 2009 net sales)
1.2.4 Apparel (7.28% of 2009 net sales)
2 Trends and Forces
2.1 Dollar General Thrives During Economic Crisis
2.2 Discount Retailers Struggle with Variable Costs
3 Competition
3.1 Off-Price Retailers
3.2 Wholesale Retailers
4 References
Discount Retailers Struggle with Variable Costs
Being a dollar store, Dollar General cannot pass increased production costs to consumers.
Competition
Off-Price Retailers
Dollar Tree Stores (DLTR)
Family Dollar Stores (FDO)
Competition Revenue ($MM) Operating Income ($MM) Net Income ($MM) Sales per Store ($MM) Number of Stores
Dollar General Corporation (DG) 11,796.38 953.26 339.44 1.336 8,828
Dollar Tree Stores (DLTR) 5,231.20 512.80 320.50 1.355 3,860
Family Dollar Stores (FDO) 7,866.97 575.60 358.13 1.182 6,655
Wholesale Retailers
Wal-Mart (WMT)
Costco Wholesale (COST)