Dollar General is planning approximately 2,385 real estate projects for fiscal year 2024, including about 800 new store openings (including approximately 30 pOpshelf openings and 15 new stores in Mexico), along with 1,500 store renovations and 85 store relocations.
While this would be an ambitious growth plan for any retailer, it actually represents a “modest slowdown” compared to the number of real estate projects Dollar General has undertaken in recent years, according to a statement by CEO Todd Vasos. Back in December 2022, Dollar General announced plans to open 1,050 locations in FY 2023, which ends in February 2024. Vasos called the slowdown “prudent in this environment.”
The discount retailer reported net sales of $9.7 billion in Q3, which ended on Nov. 2, 2023, an increase of 2.4% over the same period the previous year. Growth primarily came from newly opened stores; same-store sales declined 1.3% compared to Q3 2022, driven by a decline in average transaction amount that was offset to some extent by an increase in customer traffic. The same-store sales declines were spread across multiple categories, including home, seasonal, apparel and consumables.
“While we are not satisfied with our financial results for the third quarter, including a significant headwind from inventory shrink, we are pleased with the momentum in some of the underlying sales trends, including positive customer traffic, as well as market share gains in both dollars and units,” said Vasos, who replaced former CEO Jeff Owen in October 2023. “We continue to believe our model is relevant in all economic cycles, and we are working diligently to further enhance our unique combination of value and convenience.”
Dollar General also has been seeking alternate revenue streams; the retailer expanded its DG Media Network in March 2023.