Dollar General 2008 Annual Report Download - page 19

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Natural disasters, unusually adverse weather conditions, pandemic outbreaks,
boycotts and geo-political events could adversely affect our financial performance.
The occurrence of one or more natural disasters, such as hurricanes and earthquakes,
unusually adverse weather conditions, pandemic outbreaks, boycotts and geo-political events,
such as civil unrest in countries in which our suppliers are located and acts of terrorism, or
similar disruptions could adversely affect our operations and financial performance. These events
could result in physical damage to one or more of our properties, increases in fuel (or other
energy) prices or a fuel shortage, the temporary or permanent closure of one or more of our
stores or distribution centers, delays in opening new stores, the temporary lack of an adequate
work force in a market, the temporary or long-term disruption in the supply of products from
some local and overseas suppliers, the temporary disruption in the transport of goods from
overseas, delay in the delivery of goods to our distribution centers or stores, the temporary
reduction in the availability of products in our stores and disruption to our information systems.
These events also can have indirect consequences such as increases in the costs of insurance
following a destructive hurricane season. These factors could otherwise disrupt and adversely
affect our operations and financial performance.
The efficient operation of our business is heavily dependent upon our information
systems.
We depend on a variety of information technology systems for the efficient functioning
of our business. Such systems are subject to damage or interruption from power outages,
computer and telecommunications failures, computer viruses, security breaches, and natural
disasters. Damage or interruption to our computer systems may require a significant investment
to fix or replace them, and we may suffer interruptions in our operations in the interim. Any
material interruptions may have a material adverse effect on our business or results of operations.
We also rely heavily on our information technology staff. If we cannot meet our staffing
needs in this area, we may not be able to fulfill our technology initiatives while continuing to
provide maintenance on existing systems. We rely on certain software vendors to maintain and
periodically upgrade many of these systems so that they can continue to support our business.
The software programs supporting many of our systems were licensed to us by independent
software developers. The inability of these developers or us to continue to maintain and upgrade
these information systems and software programs would disrupt or reduce the efficiency of our
operations if we were unable to convert to alternate systems in an efficient and timely manner. In
addition, costs and potential problems and interruptions associated with the implementation of
new or upgraded systems and technology or with maintenance or adequate support of existing
systems could also disrupt or reduce the efficiency of our operations.