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Dollar General

Dollar General. Wynne Barton jwbartoniv@gmail.com. Why Dollar General?. DG Timeline. 1939- J.L. Turner and Cal Turner Sr. opened J.L. Turner and Son Wholesale in Scottsville, KY 1955- Springfield, KY Turner’s Department Store was converted into the first Dollar General Store

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Dollar General

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  1. Dollar General Wynne Barton jwbartoniv@gmail.com

  2. Why Dollar General?

  3. DG Timeline • 1939- J.L. Turner and Cal Turner Sr. opened J.L. Turner and Son Wholesale in Scottsville, KY • 1955- Springfield, KY Turner’s Department Store was converted into the first Dollar General Store • 1967- Exceeded the $1 million net income mark • 1968- DG goes public • 1973- New warehouse and office built in Scottsville, KY • 1976- $100 million sales mark • 1983- Acquires 280 stores from P.N. Hirsh Division of Interco Inc. • 1985- Acquires 206 stores and a warehouse from Eagle Family Discount Stores • 1987- Launches GED/Learn to Read Program

  4. DG Timeline • 1988- Ronald Reagan honors DG for its literacy program • 1989- 50th anniversary • 1,300 Stores in 23 states; 7,000 employees • 1995- Opens new distribution center in Ardmore, OK • 1996- Exceeds $2 Billion sales and $100 Million net income • 1997- 3,000 store mark; 25,000 employees. New distribution center in South Boston, VA • 1998- New distribution center Indianola, MS. Sales over $3B • 1999- New distribution center in Fulton, MO • 2000- GHQ moves to Goodlettsville. New DC in Alachua, FL • 2001- 5,000 store mark. Exceeds $5 Billion in sales. Opened new DC in Zanesville, OH

  5. DG Timeline • 2002- 6,000th store and $6B in sales • 2003- David Perdue named chairman and CEO • 2005- 8th distribution center in Jonesville, SC. $8B in sales • 2006- 8,000 store mark. New DC in Marion, Ind. $9B sales • 2007- DG goes private after being acquired by PE firm • 2008- Rick Dreiling is named CEO • 2009- DG goes public • 2010- 9,000th store in Fountain Run, KY • 2011- Launches Ecommerce website • 2012- 10,000 store mark and 2 more distribution centers

  6. DG- Where are they now?

  7. A Typical Dollar General Store • Is roughly 7,200sf • Freestanding stores (63%) as well as strip mall stores (37%) • 10k-12k SKU per store

  8. Dollar General Store: Key to Success • “Convenience, quality brands and low prices…” -Dollar General 10-K 2012 • Only the most popular brands and sizes • Procter and Gambler, Kimberly Clark, Unilever, Kellogg’s, General Mills, and Nabisco

  9. Business Model • “Providing a broad base of customers with their basic everyday and household needs, supplemented with a variety of general merchandise items, at everyday low prices in conveniently located, small-box stores.” - Dollar General- 10-K Report

  10. Business Model • Convenient Locations- • 70% serving communities with populations of less than 20,000. • Majority of customers live within three to five miles. • Time-Saving Shopping Experience- • Product offering includes most necessities. • Convenient hours and broad merchandise offering allow customers to fulfill their routine shopping requirements and minimize their need to shop elsewhere. • Everyday Low Prices on Quality Merchandise. • Low prices on quality merchandise • Low-cost operating structure • Maintain a limited number of SKUs per category • Maintain strong purchasing power.

  11. Measuring Success • Lean expense structure is the foundation • YE2012 expenses as a percentage of sales were 21.66% • Walmart expenses as a percentage of sales YE2012: 19.21% • Average DG does $1.5M in annual sales: break it down… • 20 customers per hour for 12 hours per day spending an average of $17.12… $4,109/day… $28,846/week… $1.5M/year • Stock Price: up 138% today since November 2009

  12. Sources • www.dollargeneral.com • http://finance.yahoo.com/q/pr?s=DG • http://www.sec.gov/Archives/edgar/data/29534/000104746913003283/a2213303z10-k.htm • http://retailingtoday.com/sites/retailingtoday.com/files/Dollar_General_2012.pdf

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