The new year will again bring significant store expansion for Dollar General as the retailer continues to roll out its DG Fresh food offerings — which include store brands — and promote other merchandising initiatives.
The retailer didn’t share specifics but said its private brands remain a sales-driving initiative and a “priority,” as it continues to rebrand six lines. It also said it introduced two new brands this year. Going forward they will continue to rebrand some lines, expand on others and add new lines. The retailer hinted at these rebranding initiatives in March such as a rebranding of Clover Valley, its highest-selling private label that garnered more than $1 billion in sales in 2019.
In announcing its third-quarter earnings, the retailer also said that it plans to open 1,050 stores in 2021, remodel 1,750 stores and relocate 100. Dollar General operates roughly 17,000 stores.
“We are excited to once again accelerate our real estate growth plans in fiscal year 2021,” said Jeff Owen, Dollar General’s chief operating officer. “Our portfolio of high-return real estate projects continues to be a top priority for capital allocation as we look to continue delivering long-term shareholder value. With a robust pipeline in place and plans to execute an average of nearly eight real estate projects per day in fiscal year 2021.”
Yet again non-consumables outperformed its consumables business, per the call, setting its 10th straight year of year-over-year comparable sales growth in the nonconsumables category.
CEO Todd Vasos also highlighted other initiatives that promise to play big roles for the retailer in 2021.