At an average of approximately 250,000 square feet, the fresh facilities are much smaller than Dollar General’s traditional dry distribution centers, which measure around 1 million square feet or more. The speed of the transition is staggering. As of the end of the third quarter of 2019, the company had approximately 4,900 stores being supplied from four (soon to be five) fresh distribution centers, all of which were opened in the course of the year. In addition, DG Fresh is expected to improve the stores’ in-stock levels. The company’s transformational refrigerated and self-distribution initiative, referred to as DG Fresh, is expected to enable the company to reduce costs and improve margins by negotiating with and purchasing directly from suppliers while reducing its reliance on third-party distributors. The cooler expansion has enabled Dollar General to increase significantly its refrigerated and frozen offerings, which includes an assortment of dairy items such as milk, eggs and cheese, frozen fruits and vegetables, and lean proteins.īy the end of fiscal 2019, the company expects to carry produce in approximately 650 stores. A Dollar General Market, measuring about 17,000 square feet and offering meat and produce, contains 54 cooler doors.
DOLLAR GENERAL MARKET PLUS
Today, new stores in the traditional Dollar General format open with a minimum of 21 cooler doors, on average, while the slightly larger Dollar General Traditional Plus (DGTP) can feature 34 doors. Vasos recalls that when he arrived at Dollar General in 2008, stores had five coolers on average.
These insights help guide the chain’s deployment of additional cooler doors throughout the store network. She has told us that she doesn’t look to us for apparel like she used to, and she prefers that we help her fill in on the food side.” “That’s why you see more coolers in our stores, and less apparel. “The consumer tells us how she’s feeling and where she believes she is going to be a year to 18 months from now,” Vasos says.
By listening closely to the customer and understanding her needs, Dollar General has been able to tailor its assortment to provide her with an affordable fill-in alternative to larger-box retailers and grocers, which may be located several miles away. Vasos added that Dollar General has a unique core customer, one who remains underserved by other retailers. We continue to execute well on many fronts, while maintaining our focus on delivering value and convenience for our customers.”
“The quarter was highlighted by our best customer traffic and same-store sales increases in nearly five years, as well as double-digit growth in both operating profit and diluted EPS. “We are pleased with another quarter of strong performance across the business,” said Todd Vasos, Dollar General’s chief executive officer, during the call. To consider just one performance metric, Dollar General posted its 29th consecutive year of comparable-store sales growth for FY 2018 in March and recently announced third quarter 2019 results that beat Wall Street expectations. Not only did the company celebrate its 80th anniversary, it also cut the grand-opening ribbon on its 16,000th store in a community devastated by Hurricane Michael in 2018, all while remaining strongly dedicated to its mission of Serving Others and posting consistently strong financial results. Though its fiscal year is not over, 2019 was certainly a year of celebrations for the Tennessee-based company. In recognition of the company’s ongoing success in growing its store base, its sales and its profits, the editors of Mass Market Retailers have named Dollar General the publication’s Retailer of the Year for 2019.
seems to defy the kind of gravity that is keeping much of the retail industry earthbound.Īt a time when some retailers are scaling back their brick-and-mortar expansion plans and may see their profits constrained by the need to invest in their omnichannel offerings, Dollar General has been growing at a rapid pace and shows no sign of slowing down.
0 kommentar(er)
