Dollar General’s Earns Big Bucks

Aug 29, 2003

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

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

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
Anderson – Moderator

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