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locations from 9,000 to 9,825. This will be achieved through selling products like General Mills,
PepsiCo, and Gamble. Dollar General intends to lure a new type of client those with huge
incomes. However, those with fixed incomes will still be their main clients. In general, the firstdeveloping retailer is making a play for what is known as trade-down shoppers reports. Based on
investors.com, trade-down shoppers are the once who make a standard wage of $ 75,000
annually and head to Dollar for the Consumables. This is the fastest growing/developing
consumer group for the organization (Wheelen, & Hunger, 2010).
Based on research, it is clear that Dollar General had not encouraged difficulty finding
suitable store sites over the past years. Having the size of the community it was targeting, the
company believes that there was sufficient change for new store development in new and
existing markets. In addition, the rates sites where better than the previous years. The real estate
is another factor that was providing Dollar General in development of existing markets. The real
estate was providing the company with new chances to gain new quality sites at lower rates than
in the past. Dollar General knew that it had opportunities of relocation and remodel programs.
The remodeled stores required approximately US$65,000 for equipments and fixtures while the
cost of relocation amounted US$ 110,000 for only equipments, fixtures, and additional inventory
(Wheelen, & Hunger, 2010).
The figure below illustrates Dollar Generals four major groups of merchandise
Consumables
Seasonal
Home products
Apparel
2009
70.8%
14.5%
7.4%
7.3%
2008
69.2%
14.6%
8.2%
7.9%
2007
66.5%
15.9%
9.2%
8.4%
237,906
1,885,75
3
27,677
121,422
2,272,75
8
1,414,70
0
4,338,58
9
1,262,83
4
60,693
9,349,57
4
1,358
337,019
1,680,27
3
31,268
68,754
2,117,31
4
1,305,85
8
4,338,58
9
1,293,28
0
77,491
9,132,53
2
26,762
January 29,
2010
$
222,076
1,519,57
8
7,543
96,252
1,845,44
9
1,328,38
6
4,338,58
9
1,284,28
3
66,812
8,863,51
9
3,671
971,538
378,750
14,068
44,601
1,410,31
5
3,286,90
7
565,510
254,669
5,517,40
1
852,988
381,346
3,659
46,178
1,310,93
3
4,105,25
2
547,180
298,622
6,261,98
7
830,953
342,290
4,525
25,061
1,206,50
0
3,399,71
5
546,172
302,348
5,454,73
5
14,783
15,131
18,486
298,459
2,937,30
0
278,202
2,497,93
9
298,013
2,923,37
7
Commitments and
contingencies
Redeemable common stock
Shareholders' equity:
Preferred stock
Common stock
Additional paid-in capital
The figure above shows consolidated balance sheet and consolidated statements of
income for Dollar General in the year 2010. The management noticed that the company has
substantial debt.
As the fast-growing retailer, Dollar General commands a chain of 10,000 discount stores
in about 40 Countries, mainly in the southern and eastern America, the Midwest, and the
Southwest. In the year 2011, Dollar General entered three new states, its first since 2006 and
made considerable progress (Wheelen, & Hunger, 2010).
The company offered mostly basic family products, such as cleaning supplies and health
and magnificence aids, it also peddles regular items, attire, and food. The Company typically
targets low, middle, and fixed-income shoppers. The company's no-frills stores are situated in
small urban/cities that are off the radar of massive discounters such as Wal-Mart. Part of its plan
illustrates that some 25% of its products is priced at $1 or less in order to attract clients
(Wheelen, 2011).
6
References
Wheelen, E., K., (2011). Dollar General Corporation: 2011 Growth Expansion Plans. Print.
Retrieved from
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Wheelen, T. L., & Hunger, J. D. (2010). Strategic management and business policy: Achieving
sustainability. Upper Saddle River, N.J: Prentice Hall.