(Jan. 30, 2009)
100 Mission Ridge, Goodlettsville, TN 37072 USA
Tel: (615) 855-4000; Fax: N/A
URL: www.dollargeneral.com
Total Sales: $10.5 Billion +10.1%
Percentage of Sales in Exclusive Brands: 13+% (E)
Principal Business: Dollar General is a discount retailer, operating 8,362 “small box” neighborhood stores (including 57 Dollar General Markets) in 35 states (primarily in Southeast and Midwest). Its stores average about 6,900 square feet of selling space, located within a five-mile radius to its customer base. Typically, they stock some 5,400 core skus plus 3,000 non-core skus. One-half of the stores are situated in communities of 20,000 or less customers. Its merchandise mix (priced at $10 per item or less with about 25% at $1 or less).
Exclusive Brand Identities: Dollar General, Clover Valley (food and beverage), DG Guaranteeed (home cleaning products and health and beauty care items), American Value (lower priced food and paper product), Uni-Lab (automotive oil, transmission fluid), and different apparel brands (Open Trails, etc.)
Total SKUs in Exclusive Brands: 400+ (E)
Profile: The rapid store growth of the recent past has slowed with 365 stores opened during fiscal 2008, while 400 stores were closed. Plans for 2008 called for just 200 new stores. Dollar General has moved more into consumables (66.5% of the merchandise mix), covering packaged foods, candy, snacks, refrigerated products, health and beauty care items, home cleaning supplies, and pet supplies. In seasonal items (15.9), there are holiday merchandise, toys, stationary, and hardware. Its home products mix of housewares and domestics represents 9.2% of the mix and basic clothing 8.4%. Its larger stores, called Dollar General Markets, which average 17,000 square feet. This retailer emphasizes national brands. (Some 12% of its sales are in Procter & Gamble products.) While more new branded items have been added, the retailer also is improving its private label assortment. Clover Valley brand now covers soup, salad dressings, breakfast foods, pasta, crackers, cookies and snacks, peanut butter, pudding and gelatin, pickles and relilsh, spices, carbonated beverages, etc. The DG Guarantee health and beauty care and general merchandise range includes: soaps, cleansers, lotions, hair care, toothpaste, razors plus laundry supplies, home cleaning products, batteries and pet food. In 2003 a new brand, American Value, was launched, featuring foods and paper goods at lower prices. Dollar General pioneered the dollar store concept, starting in 1955. The company in July 2007 merged with affiliates of Kohlberg Kravis & Roberts & Company L.P., GS Capital Partners (affiliate of Goldman Sachs), Citi Private Equity, and other equity co-investors in deal for its stockholders valued at $7.3 billion cash. In November 2009, the company completed an IPO for $445.2 million and then was listed on the NYSE under the “DG” symbol.
Procurement Contacts: Stonie O’Briant, Exec. VP, Merchandise Marketing; Bob Warner, Vice-President of Merchandise; Terry Lee, Vice-President
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FAMILY DOLLAR, INC.
(Aug. 29, 2009)
10401 Monroe Rd., Matthews, NC 28105 USA
Tel: (704) 847-6961; Fax: N.A.
URL: www.familydollar.com
Total Sales: $7.4 Billion +6%
Percentage of Sales in Exclusive Brands: 19%
Principal Business: Organized in 1959, Family Dollar has grown to become the second largest dollar store chain (”general merchandise retail discount store”) in the U.S. Its store tally at the end of this period was 6,655 stores in 44 states and DC. Its stores (ranging from 7,500 to 9,500 square feet) sell mostly merchandise under $10. They are located in urban, suburban and rural areas. Some 64.4% of its product mix is now in consumables: household chemicals, paper products, candy, snacks and other foods, health and beauty care, hardware and auto supplies, plus pet food/supplies. Home products take 13.4%, apparel and accessories 11.2% and seasonal & electronics 11% of sales. The company leases most of its stores and operates nine distribution centers
Exclusive Brand Identities: Family Dollar
Total Number of SKUs in Exclusive Brands: N/A
Profile: Family Dollar’s store opening pace has slowed from its level of 500+ per year a couple of years ago to only 180 outlets opened in this its 50th year, while 96 outlets were closed, 10 relocated, and some 40 expanded. Consumables in its product mix continue to grow, as does its private label stock. The company now has set a goal of 25% of sales in private label. Also, the company is reinforcing its global sourcing capability. During this weak economic period, , Family Dollar was able to post record earnings: $291.3 million up 24.9%. Since 2005, this retailer has continued to add refrigerated coolers. The emphasis is on quick prepared and ready-to-eat products. Family Dollar continues to increase its food assortment and to expand its private label merchandise. This included the debut of a new store brand, Kidgets for diapers, whlich will be extended into infant-todler apparel. This retailer caters to low and lower-middle income consumers, each store serving a five-mile radius. The company reports that 52% of its sales are in national branded products, 19% under private label, and the balance in other labels or unlabed packages.
Procurement Contacts: John Scanlon, Senior Vice-President, Merchandising & Marketing
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