BREAKING NEWS : One man exonerated, a second charged with murder Full Story

Dollar General is opening 900 new stores next year

Dollar General is bucking the retail trend.The discount chain announced Thursday that it plans to open 900 new...

Posted: Dec 8, 2017 11:18 AM
Updated: Dec 8, 2017 11:18 AM

Dollar General is bucking the retail trend.

The discount chain announced Thursday that it plans to open 900 new stores in 2018 for the second year in a row. Dollar General did not say how many new jobs the openings could create.

"Our first priority remains investing in new stores where we continue to see great returns," said CFO John Garratt on a call with investors.

Dollar General has become a shopping staple across the country. It currently has more than 14,000 stores in 44 states, a 35% increase from five years ago.

By the end of the year, more than three in four Americans will live within 5 miles of a Dollar General, the company noted on the call.

Dollar stores are one of the few retail groups that are thriving. Many traditional brick-and-mortar retailers have been eclipsed by the growth of e-commerce.

Shares of Dollar General have climbed 25% this year. Dollar Tree, its top discount competitor, has risen 38%.

Dollar General has succeeded thanks to its lean business model, said GlobalData Retail analyst Neil Saunders. Its smaller stores sell cheap day-to-day essentials, especially in rural areas where it doesn't make sense for Walmart or other large retailers to open up shop.

"The company [is] the closest and most convenient general merchant for millions," said Saunders.

Sales were up 4.3% last quarter at stores that were open a year ago, a sign of retail health. Revenue last quarter ballooned to $5.9 billion -- an 11% uptick from last year -- in part from hurricane-related spending in Texas and Florida.

More middle income and affluent shoppers are helping lift Dollar General's overall sales. The expansion, especially in metro areas, will allow it to continue reaching these shoppers, said Saunders.

But lower-income Americans remain the store's primary customers. The stores attracted shoppers during the economic downturn in 2008 and 2009, and consumers haven't stopped coming back since, even as the economy has picked up steam.

Analysts expect Dollar General's run to continue as long as government benefits to support poorer Americans, like Medicaid and food stamps, remain steady.

"A reduction in social benefits, like food stamps, and an increase in healthcare or housing costs may continue to be a headwind for Dollar General's customers," said Morningstar's John Bruck.

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 119066

Reported Deaths: 3612
CountyConfirmedDeaths
Marion21563768
Lake10745324
Elkhart6734112
St. Joseph6679115
Allen6364205
Hamilton4965109
Vanderburgh384231
Hendricks2779124
Monroe267137
Tippecanoe259013
Johnson2362125
Clark226757
Porter222447
Delaware201162
Cass19589
Vigo187928
Madison171475
LaPorte151941
Warrick140743
Floyd140464
Howard133964
Kosciusko127117
Bartholomew119357
Marshall102124
Dubois100919
Boone99746
Grant96636
Hancock94843
Noble92932
Henry82226
Jackson77610
Wayne77314
Morgan73940
Shelby68329
Daviess68129
Dearborn67928
LaGrange64711
Clinton63414
Harrison59824
Putnam59011
Gibson5455
Knox5379
Lawrence51829
Montgomery51321
DeKalb49111
White48814
Decatur46139
Miami4394
Greene42936
Fayette42314
Jasper4032
Steuben3977
Scott39311
Posey3541
Sullivan33812
Jennings31712
Franklin31525
Clay3105
Ripley3108
Orange28724
Whitley2876
Carroll28013
Adams2773
Wabash2758
Starke2737
Washington2702
Wells2694
Spencer2683
Jefferson2523
Huntington2503
Fulton2462
Tipton22922
Randolph2238
Perry22213
Jay1920
Newton17411
Owen1711
Martin1690
Pike1691
Rush1584
Vermillion1320
Fountain1302
Blackford1223
Pulaski1141
Crawford1100
Parke1072
Brown1033
Benton860
Ohio797
Union790
Switzerland690
Warren411
Unassigned0227

Ohio Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 152907

Reported Deaths: 4783
CountyConfirmedDeaths
Franklin27283615
Cuyahoga17603657
Hamilton13340321
Montgomery7993166
Lucas7377364
Butler6151112
Summit5393252
Warren313649
Mahoning3114282
Marion311447
Stark2946175
Pickaway268445
Lorain234286
Delaware232821
Fairfield214654
Licking196063
Columbiana195180
Wood194273
Trumbull1921132
Clark185341
Clermont176123
Lake166051
Greene153634
Medina149339
Miami147652
Allen147372
Portage117766
Mercer113919
Erie96047
Tuscarawas94320
Wayne94268
Richland94119
Ross90426
Madison85512
Darke81144
Athens7402
Geauga73349
Hancock73110
Belmont72427
Lawrence68622
Shelby66910
Ashtabula66248
Auglaize62511
Putnam62523
Sandusky58720
Huron5727
Union5512
Scioto5287
Seneca49514
Ottawa47230
Muskingum4553
Preble44716
Holmes3999
Jefferson3424
Henry33715
Defiance33212
Champaign3143
Logan3143
Clinton30512
Perry3039
Fulton2991
Brown2923
Knox28915
Jackson2667
Washington26323
Morrow2622
Hardin25713
Ashland2484
Crawford2486
Coshocton23511
Fayette2346
Highland2313
Williams2163
Wyandot21512
Pike2040
Gallia19713
Meigs17711
Guernsey1748
Hocking1679
Carroll1527
Adams1374
Van Wert1283
Paulding1130
Monroe11018
Harrison643
Morgan500
Vinton483
Noble350
Unassigned00
Fort Wayne
Clear
50° wxIcon
Hi: 61° Lo: 42°
Feels Like: 50°
Angola
Few Clouds
46° wxIcon
Hi: 61° Lo: 43°
Feels Like: 44°
Huntington
Clear
48° wxIcon
Hi: 62° Lo: 41°
Feels Like: 48°
Decatur
Clear
46° wxIcon
Hi: 61° Lo: 42°
Feels Like: 44°
Van Wert
Clear
46° wxIcon
Hi: 61° Lo: 41°
Feels Like: 44°
More Showers Thursday
WFFT Radar
WFFT Temperatures
WFFT National

Community Events