Dollar General 2005 Annual Report Download - page 9

In 2005, we added significant
leadership talent in the areas of
store operations and store devel-
opment. All of the new additions
have extensive and successful
retail experience.We also put both
of those areas under the same
division president, ensuring that
they work closely together to
achieve their complementary goals.
Near the end of the 2005
fiscal year, we also combined our
merchandising, marketing and
supply chain teams under a new
division president.This move was
the final step in joining all of our
merchandise-related efforts
together to support sales growth
in our stores. Under the new struc-
ture, we plan to bring in additional
talent to take our merchandising
efforts to the next level.
Refining Merchandising
Strategies
The Dollar General model has
succeeded because we have con-
sistently offered merchandise from
major national brands, as well as
our own high quality private label
products, at everyday low prices.
Customers can find nearly every
consumable need in our stores in
addition to a selection of apparel,
home and seasonal items. Customers
can also purchase basic refrigerated
and frozen foods, including dairy
products, eggs and packaged con-
venience food items in most of our
stores. In nearly all of our stores,
we now have the ability to process
electronic benefits transfer (EBT)
cards, assisting many customers
who rely on government assistance.
During 2006, we plan to focus
on long-term improvement of
our merchandising function.
Specifically, we are just starting
our category management effort
and will continue to enhance our
segmentation capabilities. We are
also working to strengthen our
planogram, making it more
responsive to trends in the market.
In 2006, we plan to increase
our branded assortment and
ensure the proper pres-
entation of national
brands. At the same
time, we have the oppor-
tunity to improve our
private label assortment
and increase its share of
our mix. We are improving our
sourcing capabilities, as well as our
ability to find special purchases
that will enhance our treasure
hunt dimension. Our pricing con-
tinues to be very competitive, and
in 2005 we initiated a much more
rigorous national benchmarking
effort to ensure that we remain
extremely competitive on price.
We also have developed a new
store prototype that we plan to
test in existing stores and roll out
in our new stores in 2006.
Space in our existing stores is
being reallocated both to high-
light categories that we know are
important to our customers and to
add new products. We also are
positioning ourselves to respond
more quickly to changes in cus-
tomer needs and product trends
throughout the year.
We demand quality products
with the right prices from our ven-
dors, and we value our relation-
ships with vendors who meet that
demand.We will continue to
develop these strong vendor rela-
tionships and to build new ones.
As part of that effort, we are plan-
ning several projects with key ven-
dors in 2006 to enhance the pro-
file of their brands in our stores.
In 2001, we were the first “dollar store”
to introduce coolers, making basic
foods, like milk, eggs and cheese, more
convenient for our customers.
Stock car racing remains
one of the fastest-growing
spectator sports in the U.S.
and a popular pastime for
many of our core customers.
Dollar General enters its
second year as a NASCAR race
team sponsor with rising star
Burney Lamar at the wheel.
Vice President of Global Sourcing Monique Wong leads
the Dollar General Hong Kong buying team. Using trend
forecasts and sharp negotiating skills, the team secures
products customers want at prices they can afford.
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