Dollar General is emerging from the shadow of accounting errors, which resulted in a nearly $200 million overstatement of earnings, shareholder lawsuits and an investigation by the SEC, with aggressive initiatives designed to enhance its long-term profitability.
New programs include an expanded test of perishables, the rollout of a markdown program in apparel and seasonal goods, new processes in store operations aimed at improving productivity and various technology upgrades. As a result of these efforts, Dollar General expects same store sales to grow five percent to seven percent this year and earnings before special charges to grow 13 percent to 15 percent.
Moderator Comment: Does the dollar store format and consumers lend itself to food sales?
Dollar General's competitor, Family Dollar, doesn't think so. It is on the record saying that it has no plans to get into the grocery business. [George Anderson - Moderator]