Dollar General swimming against the tide

Discount retailer's brass will continue to invest in more polished image

Email | Print By Kyle Swenson

Rick Dreiling

Dollar General Chairman and CEO Rick Dreiling and CFO David Tehle fielded both questions and congratulations from investors and industry analysts today as the pair outlined the company's positive third-quarter results.

Citing a growing customer base and improved store and product quality, the pair reported third-quarter sales of $2.6 billion, up 12.4 percent from last year.

Despite dismal retail prospects across the nation, the Goodlettsville-based chain has attracted the frugal flow of consumers looking for lower-priced options. Conscious of the increase, the company has made an effort to clean up its discount image.

“Our customers are responding well to the changes we have made in our stores, which include improvements to store appearance, the introduction of new products and plan-o-grams, and the expansion of our private label offerings,” Dreiling said.

Dollar General spent $99 million in the first nine months of the year on improvements and upgrades to existing stores as well as $22 million to remodel and relocate other locations.

“Our stores are much cleaner and much more orderly than they have been in the past,” Dreiling added.

Both men emphasized Dollar General will keep putting money back into the improving quality of their existing stores and product offerings.

“Our first priority for the use of cash flow is investing in our business,” Tehle said. “We expect to continue to invest in our capital expenditure and our inventory as long as we can keep the turns up.”