Dollar General Information Project

Business Information Project - MGMT 301 Spring 2014

Company & Industry Research/Analysis Project
Company Name: Dollar General
Currently Ranked # 175 in the Fortune 1000
Company Overview:
Dollar General is a large US Chain of discount variety stores that operate in about 40 states and
have headquarters in Goodlettsville, Tennessee. There are over 11,000 stores that offer mostly
basic household items, with about 25% if the merchandise priced at $1 or less.
Hoovers
Hoovers, Inc. (2013). Dollar General. [company profile]. Retrieved April 16, 2014, from
Hoovers database.
1.

Dollar General operates discount variety stores, targeting low, middle and fixed income
shoppers. Dollar General offers mostly basic household products, as well as seasonal products
and shelf-stable items and perishable foods. The company was founded in 1939 by a father-son
pair, and its name was changed to Dollar General in 1968. The company was acquired by private
equity firm Kohlberg Kravis Roberts, who took the company public in 2009.
2. Dollar General is publicly traded on the NASDAQ and its ticker symbol is DG
3. Dollar General competes mainly with other discount and variety stores. The top three

competitors of Dollar General include Family Dollar Stores, Wal-Mart, and Dollar Tree.
These three companies offer similar products and services as Dollar General and are
generally interchangeable.
4. Richard W. Dreiling is the CEO of Dollar General and David M. Tehle is the CFO.
5. Dollar Generals top three competitors are Family Dollar Stores, Wal-Mart and Dollar Tree.
Family Dollar is smaller than Dollar General with 8,000 locations and 50,000 employees.
Walmart is considerably larger than Dollar General with 11,088 stores and a significant 2.2
million employees. Dollar Tree is smaller than Dollar General with 4,900 stores and 87,400
stores.
6. Dollar General has 90,000 employees
7. Dollar General operates solely in the United States

.
Standard & Poors NetAdvantage
Asaeda, Tuna N. (2013, December) Retailing: General. Industry Survey. Retrieved April 16,
2014, from Standard & Poor's NetAdvantage database.
Dollar General Corporation is incorporated in the United States. Dollar General operates in the
consumer discretionary sector and its primary industry classification is multiline retail. As far as
the Multiline Retail industry goes, there is a 2.5% increase in sales projected during the holiday
season. Consumers in the retail industry are usually highly value conscious, with most shopping
occurring during the holiday season. In this industry, online shopping is the most popular form of
retail; there is a projected 13% rise in online retail for the holiday season. The industry has also
been trending in a different direction in recent years. Numerous stores fight for the top spot,

which keeps the industry competitive. In addition, consumer spending has decreased due to the
weak state of the economy. Due to all of this, consumers value low-prices above all else, which
is a point many retailers try to make.
ABI/Inform or Business Source Premier
Bryant, Celan (2014, April) Dollar Generals Got It. The Motley Fool. Retrieved April 16, 2014
from ABI/Inform Complete database.
According to the recent earnings of several companies such as Walmart and Target compared to Family
Dollar Stores and Dollar General, the dollar stores are earning better in same-stores sales growth. There
are several reasons for which Dollar General is performing better than its larger competitors. Smallerscale stores such as Dollar General focus on different types of products than Target and Walmart. Dollar
stores focus more on items that people purchase several times a week, such as food products, which is an
ever-growing market among discount retailers. Small stores such as Dollar General work with limited
space, so they need to fill their stores with items that turn over quickly, and Dollar General realizes that
filling stores with items people consume will increase their volume. Much to the contrast of Target and
Walmart, Dollar General had same-store sales increased by 3.3% in 2013. Walmart now realizes that
smaller stores perform better than larger supercenters, so they are changing the way they open new stores.
In February, the CEO of Walmart committed to the development of 270 to 300 new smaller stores.
Walmart plans on using the supercenters as a sort of supply chain center for the smaller-format stores.
Walmart used the managerial method called Benchmarking. Benchmarking is comparing your company
to outside organizations in order to improve your own operation. Walmart benchmarked Dollar Generals
use of small stores in order to better their own sales.

Non PSU Sources:

Census Bureau
U.S. Census Bureau. (2013). 2012 Annual services: Estimated revenue for employer and nonemployer firms: 2007 through 2012. Retrieved January 16, 2014, from
http://www.census.gov/services/index.html.
One piece of information that Dollar General might find interesting is the statistics of ecommerce in the
United States. According to U.S Census Bureau, there has been a 16% increase from the fourth quarter of
2012 in the purchases of good through online retailers. This is a large increases and shows that ecommerce is an ever-growing market. As of 2014, Dollar General does not offer online shopping and
relies solely on shopping in their retail stores. Dollar General is going to have to make steps to ensure that
they do not fall behind with growing online markets. Dollar General will have to ensure that their prices
are competitive with those online, and emphasize the convenience and pleasant experience of their stores.
Online retailers emphasize convenience, so Dollar General will have to show that their stores are
convenient, offer low prices, and offer a friendly atmosphere. Dollar General could also consider the
prospect of offering their products online, although this would require them to change their business
model. Overall, Dollar General needs to continue to focus on offering customers the essential products
they need at an affordable price in order to keep customers coming to their stores.

Company Web Site

XYZ (2014). Ethics, diversity and our bottom line. Retrieved January 16, 2014 from
www.dollargeneral.com.
According to the company website, www.dollargeneral.com, Dollar General is dedicated to making
shopping for everyday items simpler and hassle-free. Dollar General offers the most popular brands at

low everyday prices in small, convenient locations. The website details its involvement in the following
topics:
Sustainability Dollar Generals recycling of cardboard alone is projected to save nearly 2.4
million trees in one year. Dollar General also keeps electronic equipment and harmful plastics out
of its landfills and directs them toward recycling programs instead. Dollar General also uses
energy efficient lighting, and heating/air conditioning, which conserves energy and keeps costs
low for customers.
Diversity Dollar General strives to build a workforce that incorporates diverse talent in the
communities they serve. Dollar General believes diversity leads to quality
Philanthropy The Dollar General Literacy Foundation was created in 1993. The Dollar General
Literacy Foundation strives to increases access to programs that are designed to help adults and
children who are struggling with basic literacy.
Community Dollar General promotes healthy families, thriving communities and a cleaner
environment. Dollar General also supports the community by providing safe products and
enforcing environmentally-friendly practices.