Dollar General expands as other retailers labor
Company to build new Texas facility, add 400 jobs
Even as the economy soars to new heights, one of retail’s biggest stars is a humble discount chain focusing on rural America.
And Dollar General showed again Wednesday why it is becoming such a force. The chain’s rapid growth continued as it announced plans for its
17th U.S. distribution center, a facility that’s expected to create approximately 400 new jobs.
Projected for an early-2018 construction start in Longview, Texas, the nearly 1 million-square-foot facility will help supply the company’s nearly
1,400 stores across the state, Dollar General CEO Todd Vasos said.
The expansion comes weeks after Tennessee-based Dollar General said it would add 900 new locations to its roster of nearly 14,000 stores. Applauding the growth, investors have sent Dollar General’s stock up nearly
26% in 2017, making the company a bright spot in a retail sector troubled by store closings and bankruptcies.
“We look forward to the facility helping better serve our customers with value and convenience, as well as creating career opportunities for approximately 400 future Dollar General employees,” Vasos said in a statement issued with the Texas expansion plan.
Sears Holdings, Macy’s, JCPenney and other major U.S. retailers have been closing stores as they try to cope with changing consumer tastes and the growing shift to e-commerce.
In contrast, Dollar General is expanding. As 2017 draws to a close, the year is expected to become the 27th in a row of sales growth in stores open at least one year. The company’s market capitalization, now roughly $25.1 billion, edges the $24.5 billion for Kroger, the largest U.S. grocery chain.
Dollar General’s corporate strategy focuses in part on opening stores in rural and exurban locations often located miles from the nearest Walmart or other major retailers. In recent years, the company has also expanded that focus to include stores in parts of New York City, Chicago and other major urban centers. Dollar General has also boosted salaries and training for store managers.
After issuing the company’s thirdquarter earnings report Dec. 7, Vasos told investors and Wall Street analysts in a conference call that 75% of the U.S. population would likely be within 5 miles of a Dollar General store by the end of the company’s current fiscal year.
Dollar General stores typically stock cereal, milk, laundry detergent, pet food and other sundries, in some cases in smaller sizes to help customers keep their costs down. A typical customer buys about five items per shopping trip for an average basket cost of approximately $12, Vasos said.