Dollar general
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Dollar General. Wynne Barton [email protected] Why Dollar General?. DG Timeline. 1939- J.L. Turner and Cal Turner Sr. opened J.L. Turner and Son Wholesale in Scottsville, KY 1955- Springfield, KY Turner’s Department Store was converted into the first Dollar General Store

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Dollar General

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Dollar general

Dollar General

Wynne Barton

[email protected]


Why dollar general

Why Dollar General?


Dg timeline

DG Timeline

  • 1939- J.L. Turner and Cal Turner Sr. opened J.L. Turner and Son Wholesale in Scottsville, KY

  • 1955- Springfield, KY Turner’s Department Store was converted into the first Dollar General Store

  • 1967- Exceeded the $1 million net income mark

  • 1968- DG goes public

  • 1973- New warehouse and office built in Scottsville, KY

  • 1976- $100 million sales mark

  • 1983- Acquires 280 stores from P.N. Hirsh Division of Interco Inc.

  • 1985- Acquires 206 stores and a warehouse from Eagle Family Discount Stores

  • 1987- Launches GED/Learn to Read Program


Dg timeline1

DG Timeline

  • 1988- Ronald Reagan honors DG for its literacy program

  • 1989- 50th anniversary

    • 1,300 Stores in 23 states; 7,000 employees

  • 1995- Opens new distribution center in Ardmore, OK

  • 1996- Exceeds $2 Billion sales and $100 Million net income

  • 1997- 3,000 store mark; 25,000 employees. New distribution center in South Boston, VA

  • 1998- New distribution center Indianola, MS. Sales over $3B

  • 1999- New distribution center in Fulton, MO

  • 2000- GHQ moves to Goodlettsville. New DC in Alachua, FL

  • 2001- 5,000 store mark. Exceeds $5 Billion in sales. Opened new DC in Zanesville, OH


Dg timeline2

DG Timeline

  • 2002- 6,000th store and $6B in sales

  • 2003- David Perdue named chairman and CEO

  • 2005- 8th distribution center in Jonesville, SC. $8B in sales

  • 2006- 8,000 store mark. New DC in Marion, Ind. $9B sales

  • 2007- DG goes private after being acquired by PE firm

  • 2008- Rick Dreiling is named CEO

  • 2009- DG goes public

  • 2010- 9,000th store in Fountain Run, KY

  • 2011- Launches Ecommerce website

  • 2012- 10,000 store mark and 2 more distribution centers


Dg where are they now

DG- Where are they now?


A typical dollar general store

A Typical Dollar General Store

  • Is roughly 7,200sf

  • Freestanding stores (63%) as well as strip mall stores (37%)

  • 10k-12k SKU per store


Dollar general store key to success

Dollar General Store: Key to Success

  • “Convenience, quality brands and low prices…”

    -Dollar General 10-K 2012

  • Only the most popular brands and sizes

    • Procter and Gambler, Kimberly Clark, Unilever, Kellogg’s, General Mills, and Nabisco


Business model

Business Model

  • “Providing a broad base of customers with their basic everyday and household needs, supplemented with a variety of general merchandise items, at everyday low prices in conveniently located, small-box stores.”

- Dollar General- 10-K Report


Business model1

Business Model

  • Convenient Locations-

    • 70% serving communities with populations of less than 20,000.

    • Majority of customers live within three to five miles.

  • Time-Saving Shopping Experience-

    • Product offering includes most necessities.

    • Convenient hours and broad merchandise offering allow customers to fulfill their routine shopping requirements and minimize their need to shop elsewhere.

  • Everyday Low Prices on Quality Merchandise.

    • Low prices on quality merchandise

    • Low-cost operating structure

    • Maintain a limited number of SKUs per category

    • Maintain strong purchasing power.


Measuring success

Measuring Success

  • Lean expense structure is the foundation

    • YE2012 expenses as a percentage of sales were 21.66%

    • Walmart expenses as a percentage of sales YE2012: 19.21%

  • Average DG does $1.5M in annual sales: break it down…

    • 20 customers per hour for 12 hours per day spending an average of $17.12… $4,109/day… $28,846/week… $1.5M/year

  • Stock Price: up 138% today since November 2009


Sources

Sources

  • www.dollargeneral.com

  • http://finance.yahoo.com/q/pr?s=DG

  • http://www.sec.gov/Archives/edgar/data/29534/000104746913003283/a2213303z10-k.htm

  • http://retailingtoday.com/sites/retailingtoday.com/files/Dollar_General_2012.pdf


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