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GOODLETTSVILLE, Tenn. — Dollar General Corp., which in recent years aggressively relocated underperforming stores, plans this year to invest in freshening up smaller locations and trimming the number of items on offer.
Dollar General Corp., which in recent years aggressively relocated underperforming stores, plans this year to invest in freshening up smaller locations and trimming the number of items on offer.
Such an approach is cheaper than a traditional remodel, and the refurbished stores generate returns that are between 25% and 40% higher, chairman and chief executive officer Rick Dreiling told investors this month.
"We have developed what we were calling a life cycle remodel," Dreiling said. "Rather than trying to play in every category, [we’re] really focusing on those that are most productive. Then, of course, we are going to stay focused on category management."
Stores in the program range from 5,700 square feet to 6,500 square feet.
Dollar General expects to open 700 stores this year, and foresees same-store sales rising between 3% and 4%, with top-line growth of 8% to 9%.
