Dollar General to Expand Market Store Test

Nov 18, 2003

By George Anderson

Dollar General announced yesterday it planned to expand its new format test by opening 20 Dollar General Market stores next year.

The Dollar General Market format is a larger box than the chain’s average store with an expanded selection of the chain’s core product mix plus a selection of fresh produce,
refrigerated, frozen and non-perishable food items.

Dollar General also announced it would open a new distribution center to better serve its existing and new store base.

The retailer’s chairman and chief executive officer, David Perdue, said in a released statement, “This is an exciting day for the company. We are reaffirming our strategy as
a growth-oriented distributor of highly consumable basic items for the underserved customer. Our 2004 plans to open stores in three new states, expand our distribution network,
and open 20 Dollar General Market stores reflect my confidence in our business model and my enthusiasm for our future prospects.”

Moderator’s Comment: What are your thoughts on Dollar General expanding its Market store format test? How are dollar stores impacting the retail market
and what must they do to remain competitive against the likes of discount stores, supermarkets, convenience stores, drugstores, etc.?

It’s interesting to note that the more other formats adopt the ways of dollar stores, the more dollar stores copy from their competitors.

David Bishop, director, Willard Bishop Consulting, told attendees at the Private Label Manufacturers Association’s (PLMA) Show that he expects to see convenience
stores adding dollar store items as they continue looking for alternatives to offset declining revenues in categories such as cigarettes and gasoline.
Anderson – Moderator

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