With 975 new stores opening this year, Dollar General advances its troops
Dollar General announced this week that it will open 975 new stores and remodel 1k older stores in a nationwide expansion.
Even as other Dollar-dealing competitors flounder, the General perseveres, as it has managed to increase sales in its stores for 29 consecutive years.
Growing where no brand’s grown before
Since Dollar General stores cost just $250k to open, (far less than the $15m required to open a larger retailer like Walmart), they can make money in small rural communities where other businesses can’t.
Often, Dollar General is the only option in low-income rural communities, which has helped the franchise explode in popularity across rural areas — last year, DG opened 900 new stores last year and 1,315 the previous year.
From the mixed-up files of new retail…
So as other brick-and-mortar retailers like Sears have slid toward their fiery demise, Dollar General has continued to provide a business model that supports large, national networks of stores.
Despite its growth, DG’s stock fell 9% in response to a profit forecast that failed to live up to Wall Street hype. Though, DG plans to invest more in digital ordering and grocery sales, which is likely to help the company rebound and keep its 29-year streak alive.
But not all Dollars are created equal: Family Dollar, a competing national dollar-store chain, will close 400 stores this year as it struggles to turn profits in urban areas that often have more competition.