Where Dollar General plans to invest $100 million this year
- Dollar General will make a $100 million investment in its stores this year.
- Much of that investment will go toward increasing workforce labor hours, CEO Jeff Owen said.
- Owen said enhancing in-store experience for customers was key in 2023.
Dollar General will spend approximately $100 million on its stores this year, according to the discount store’s CEO Jeff Owen .
During the retailer’s fourth-quarter earnings call with investors, Owen said the chain would invest the money throughout the year, primarily with expenditures in incremental labor hours to help it build sales momentum and capture additional market share. Owen told investors the investment would lead to improving store standards and enhancing shoppers’ in-store experience.
Dollar General's sales failed to meet its expectations set for the fourth quarter, though Owen said sales at the chain remained strong. Sales in the fourth quarter increased by 17.9%, the company said, while the retailer’s fiscal year net sales increased by 10.6%. Dollar General’s operating profit increased 17.1% in the fourth quarter to $933.2 million, while its operating profit for the overall fiscal year increased 3.3% to $3.3 billion.
Owen said the retailer made significant progress on its goals last year, including:
- Executing approximately 3,000 real estate projects.
- Completing the rollout of its non-consumables initiative, which focuses on non-food items, such as health care products and home goods.
- Tripling the count of its Popshelf store concept, a slightly more expensive store aimed at wealthier shoppers. The retailer aims to have about 1,000 Popshelf stores by 2025.
- Increasing the size of its private tractor fleet by more than double.
- Opening three new distribution centers.
“As a result, we believe we are well-positioned to continue serving our customers with our unique combination of value and convenience in the communities we call home,” Owen said, adding: “Building on the investments we made in 2022, and the substantial progress we have made in our supply chain, we believe this incremental investment will yield strong returns as we continue creating long-term sustainable growth and value for our shareholders.”
The dollar- and discount-store channels have seen growth among consumers, as they search for value in the face of inflation and other economic pressures. These channels become increasingly popular with consumers for grocery items, especially as the dollar channel offers value and often has a presence in communities with no or limited access to supermarkets or other retail channels, Retail Leader Pro recently reported.
Dollar General competitor Dollar Tree, which also owns and operates the Family Dollar chain, earlier in March signaled it would invest significantly in increasing its offering of private-label consumable products, as Retail Leader previously reported. The retailer said it would introduce hundreds of new private-label consumables by the end of 2023.