Dollar General 2005 Annual Report Download - page 11

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Our Focus in 2006
In addition to driving toward
the long-term strategic objectives
outlined above, we will pay very
close attention to the challenges
ahead in 2006.
One of our highest priorities is
improving same-store sales. That
improvement requires effort in all
areas of the business but will be
chiefly centered in our merchandis-
ing, marketing and store opera-
tions functions.
To meet the expanding needs
of our customers, as well as the
growing number of new cus-
tomers, we must grow as well. In
2006, we plan to open approxi-
mately 800 new traditional Dollar
General stores and 30 Dollar
General Markets. We expect to
open our ninth distribution center
in 2006 in Marion, Ind., and we will
consider our expansion strategy as
we determine the location of
future distribution centers. We
also will maintain our practice of
investing in technology that sup-
ports our growth and helps
improve performance.
Since its founding in 1939,
Dollar General has cultivated a
strong and loyal customer base. Its
customer-centered efforts have
endured and succeeded through
various economic cycles.The
Company’s compounded annual
sales growth rate is in excess of 17
percent over the past 10 years. Our
legacy of being “customer-centric”
is crucial to our future success.
Past leaders of the Company,
including our founder J.L.Turner,
his son Cal Turner, Sr., and his
grandson Cal Turner, Jr., under-
stood the importance of focusing
on the customer. They personal-
ized the effort to help our cus-
tomers deal with the financial
pressures of everyday life.
Today, we build on that legacy.
As we continue to add new cus-
tomers, we never forget the needs
of our low-income core customer.
Our ability to understand the cir-
cumstances our customers face
and to give them products they
want, at prices they can afford, is
our greatest strength, and our
customers know it.
The supply chain team is critical to the success of the EZstore process
improvement program, which continues to show promising preliminary results.
Dollar General’s growing network of stores
demands a high efficiency supply chain operation.
Senior Vice President/General Merchandise Manager
of Consumables Rita F. Branham, Vice President of
Distribution Anthony Roden and Vice President of
Process Improvement Rod West collaborate to ensure
seamless movement of products from shop floor to
sales floor.
7