Dollar General Corporation recently released its annual report, providing an in-depth look at its financial performance and business operations. The discount retailer, based in Goodlettsville, Tennessee, operates 20,022 stores across 48 U.S. states and Mexico, offering a wide range of merchandise, including consumable products, seasonal items, home products, and apparel. Dollar General's strategic priorities include driving profitable sales growth, capturing growth opportunities, enhancing its position as a low-cost operator, and investing in its diverse teams through development, empowerment, and inclusion.
In the 10-K report, Dollar General highlighted its financial and operational performance, discussing various factors impacting its business. The company opened 987 new stores, remodeled 2,007 stores, and relocated 129 stores in 2023. It also plans to open approximately 800 new stores, remodel around 1,500 stores, and relocate approximately 85 stores in fiscal 2024. Dollar General's focus on driving profitable sales growth is evident in its initiatives to increase customer traffic and average transaction amount, particularly in the consumables category, which has been a key driver of net sales and customer traffic.
The company's "DG Fresh" initiative, a self-distribution model for frozen and refrigerated products, has positively contributed to its sales and gross margin performance. Dollar General also continues to evaluate and evolve its pOpshelf concept, a retail concept focused on categories such as seasonal and home décor, health and beauty, home cleaning supplies, and party and entertainment goods.
Dollar General's financial performance was impacted by various factors, including higher damages and significantly higher shrink in 2023. The company attributes the increase in shrink to factors such as higher inventory levels, store standards, operational challenges, and the macroeconomic environment. To address these challenges, Dollar General is revising its self-checkout strategy, investing in retail labor to improve store standards, and enhancing its inventory reduction efforts.
The company remains committed to its long-term operating priorities, emphasizing the importance of its diverse teams as a competitive advantage. Dollar General continues to pay quarterly cash dividends and utilizes key performance indicators, including same-store sales, average sales per square foot, and inventory turnover, to manage its business and make decisions about resource allocation.
Following these announcements, the company's shares moved 0.7%, and are now trading at a price of $151.82. If you want to know more, read the company's complete 10-K report here.
