Dollar General 2008 Annual Report Download - page 11

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Our recent store growth is summarized in the following table:
Year
Stores at
Beginning
of Year
Stores
Opened
Stores
Closed (a)
Net
Store
Increase/(Decrease)
Stores at
End of Year
2006
7,929
537
237
300
8,229
2007
8,229
365
400
(35)
8,194
2008
8,194
207
39
168
8,362
(a) Includes 128 stores and 275 stores closed in 2006 and 2007, respectively as a result of certain strategic
initiatives.
Employees
As of February 27, 2009, we employed approximately 72,500 full-time and part-time
employees, including divisional and regional managers, district managers, store managers, and
DC and administrative personnel. Management believes our relationship with our employees is
generally good, and we currently are not a party to any collective bargaining agreements.
Competition
We operate in the discount retail merchandise business, which is highly competitive with
respect to price, store location, merchandise quality, assortment and presentation, in-stock
consistency, and customer service. We compete with discount stores and with many other
retailers, including mass merchandise, grocery, drug, convenience, variety and other specialty
stores. These other retail companies operate stores in many of the areas where we operate, and
many of them engage in extensive advertising and marketing efforts. Our direct competitors in
the dollar store retail category include Family Dollar, Dollar Tree, Fred’ s, 99 Cents Only and
various local, independent operators. Competitors from other retail categories include Wal-Mart,
Walgreens, CVS, Rite Aid, Target and Costco, among others. Certain of our competitors have
greater financial, distribution, marketing and other resources than we do.
The dollar store category differentiates itself from other forms of retailing by offering
consistently low prices in a convenient, small-store format. We believe that our prices are
competitive due in part to our low cost operating structure and the relatively limited assortment
of products offered. Historically, we have minimized labor by offering fewer price points and a
reliance on simple merchandise presentation. We maintain strong purchasing power due to our
leadership position in the dollar store retail category and our focused assortment of merchandise.
Trademarks
We own marks that are registered with the United States Patent and Trademark Office,
including the trademarks Dollar General®, Dollar General Market®, Clover Valley®, DG®, DG
Guarantee® and the Dollar General price point designs, along with variations and formatives of
these trademarks as well as certain other trademarks. We attempt to obtain registration of our
trademarks whenever practicable and to pursue vigorously any infringement of those marks. Our
trademark registrations have various expiration dates; however, assuming that the trademark
registrations are properly renewed, they have a perpetual duration.