Dollar General Sets Store Remodel Expansion Plans
Dollar General will embark on an aggressive real estate plan that includes remodeling approximately more than 4,000 stores along with opening approximately 575 new stores in the U.S.
The plans will be put in motion during is fiscal year 2025 and include the full remodeling of 2,000 stores, remodeling another 2,250 stores through its Project Elevate, and relocating an additional 45 stores.
“We are excited about our significant increase in planned real estate projects for 2025,” said Kelly Dilts, Dollar General’s chief financial officer. “In particular, we are enthusiastic about Project Elevate, which introduces an incremental remodel initiative within our mature store base. This initiative is aimed at our mature stores that are not yet old enough to be part of the full remodel pipeline.”
Dollar General’s unveiling of its store remodel and expansion plans comes as the retailer reported a solid third quarter. Net sales were up 5% to $10.2 billion. The increase was driven by positive sales contributions from new stores and growth in same-store sales, partially offset by the impact of store closures.
Same-store sales increased 1.3% compared to the third quarter of 2023, reflecting increases of 1.1% in average transaction amount and 0.3% in customer traffic. Same-store sales in the third quarter of 2024 included growth in the consumables category, partially offset by declines in each of the home, seasonal, and apparel categories.
While revenue grew, the retailer reported a decrease in net income of $196.5 million for the third quarter of 2024, down 28.9% compared to $276.2 million in the third quarter of 2023. Diluted earnings per share decreased 29.4% to $0.89 for the third quarter of 2024 compared to diluted earnings per share of $1.26 in the third quarter of 2023.
“We are pleased with our team’s execution in the third quarter, particularly in light of multiple hurricanes that impacted our business,” said Todd Vasos, CEO of Dollar General. “We believe our back to basics efforts contributed to these results, as we have continued to improve our execution and the customer experience in our stores.”
The retailer has updated its financial guidance for the remainder of the fiscal year. The company now expects net sales growth in the range of approximately 4.8% to 5.1%, compared to its previous expectation of approximately 4.7% to 5.3%. Same-store sales growth is expected in the range of approximately 1.1% to 1.4%, compared to its previous expectation in the range of 1.0% to 1.6%.