By George Anderson
Dollar General announced its earnings climbed 41 percent in the most recent quarter versus the same period the last year, according to a CBS Market Watch report.
Total store sales were up nearly 14 percent, while stores opened more than a year posted an increase of 4.7 percent. The same store number improvements were attributed largely due to double digit growth in food, seasonal and home products.
Bernard Sands analyst Richard Hastings said strong financial reports from Dollar General and rival Dollar Tree demonstrate, "Consumer acceptance of the dollar format is gaining traction into upper income demographics, opening the way for more store expansions in new locations for a segment where small stores mean low occupancy rents and easier location cost because of the small square footage."
Moderator's Comment: How do you see dollar stores evolving from what they are today?
Dollar General has clearly defined food as a driver for its business going forward. The company announced that former senior vice president of supply operations for Safeway, Lawrence Jackson, will become Dollar General's new president and chief operating officer next month.
Mr. Jackson also spent 17 years in management positions within the Pepsi organization.
Dollar General's chairman and chief executive officer, David Perdue said, "Lawrence is absolutely the right person for this job. His informed perspective is both strategic and tactical, and his varied experience at Safeway and Pepsi will enable him to contribute immediately. He has proven his ability to lead, to motivate and to effect change in various business situations, and he fits our culture. I am confident that Lawrence will play a key role at Dollar General as we move to the next level in the development of our business model." [George Anderson - Moderator]