- Category: Grocers
- Last Updated on Tuesday, 08 October 2013 01:33
- Published on Monday, 07 October 2013 17:14
- Written by Seraphim
On Saturday October the 5th Dollar General opened its 11,000th location in Murfreesboro, Tennessee, that makes more than 600 new store openings in just the past year with another 650 on tap for 2013. How is it maintaining such a phenomenal growth rate ? the company now boasts 100,000 employees and ranks 15th largest among North American food retailers ($15 billion in annual revenue ranks just behind Sobeys).
look no further than the most recent 13-week period ended August 2nd, 2013;
sales +11.3% -> $4.39 billion, earnings +15% -> $245 million, same-store sales +5.1%, gross profit +9%.
sales growth led by candy, tobacco (cigarettes), and other perishable items.
tobacco alone accounted for one-fifth of the growth in same-stores sales (1% of 5%). Grocery shopping - "average basket of items containing cigarettes is almost $13.75, vs. an average without cigarettes of about $10.70".. 1/3rd of tobacco purchases are tobacco only.
full year 2013 revenue estimate : +12%, same-store sales +4.5%, capital expenditures $575m - $625m