Dollar General 2014 Annual Report Download - page 3

opening 700 new stores, while also returning capital to our
shareholders through the repurchase of 14.1 million shares
of our common stock. We had increases in both customer
trac and average transaction amounts resulting from the
refinement of our merchandise oerings and increased
utilization of store square footage.
Our mission is Serving Others, and Dollar General is
committed to improving the quality of life in our hometowns.
In 2014, we partnered with our customers and vendors to
donate nearly $17 million for charities, including $13 million
toward the Dollar General Literacy Foundation, which helps
to improve lives through literacy and education. Increasing
literacy with an emphasis on adult literacy has been our
focus, and we have helped millions of individuals take their
first steps toward literacy or continued education since the
Foundation’s inception in 1993.
In 2015, we plan to open approximately 730 new stores
and increase our selling square footage by six percent
as we continue to expand in our existing markets, as
well as enter the states of Maine, Oregon and Rhode
Island. Given our strong return profile for new stores, we
announced an acceleration of our new store openings for
2016 to seven percent selling square footage growth. We
also have announced an expanded capital return plan for
shareholders that includes both share repurchases and
anticipated quarterly dividends. These plans represent
a balanced approach to our commitment of delivering
increased value by investing in future growth and returning
capital to our shareholders.
Dollar General is a strong company because of our
employees and their enduring commitment to Serving
Others including our shareholders, customers, fellow
employees and the many communities we serve. I believe
the future is bright for Dollar General. I look forward to
the company’s continued success.
Kindest regards,
Richard W. Dreiling
CHAIRMAN AND CHIEF EXECUTIVE OFFICER
April 2, 2015
TO OUR SHAREHOLDERS, CUSTOMERS AND EMPLOYEES
2014 marked Dollar General’s 75th anniversary of helping
our customers save time and money by providing them
with quality basic merchandise at great everyday low
prices in convenient neighborhood stores. One thing that
remains a constant in the changing landscape of retail is
the importance of maintaining our customer-centered
focus. By doing the basics like taking care of our stores and
serving our customers, Dollar General has positioned itself
as the sector leader with a real competitive advantage.
As you may know, this will be my last letter to you as
chairman and chief executive ocer. I feel very fortunate
to have had the opportunity to lead Dollar General for the
past seven years. In many ways, it was great timing. I have
been told I was the right person at the right time for Dollar
General. I know Dollar General was the right company
for me. This has been the best job of my life, working
alongside people I respect and admire, and serving as
CEO of a company that I love. I am passionate about our
mission of Serving Others. That spirit of service is at the
heart of everything we do for our customers who count
on us to provide them with the everyday items they need
at prices they can aord, our employees who are able to
grow with us and build careers and our shareholders who
count on us to drive strong returns.
I am proud of many things, operational and financial,
we have achieved over the last seven years. Since I
joined Dollar General in January 2008, our annual sales
have nearly doubled, our store base has expanded by
nearly 44% to 11,789 locations and sales per square foot
has climbed 35%, all while significantly improving the
profitability of our business. We have invested in our
future through the addition of three distribution centers,
adding more than 2,500,000 square feet of distribution
capability, or an increase of 26%, to fuel our growth. It has
been a remarkable journey.
Highlights of 2014
• Net sales increased by 8.0% to $18.9 billion or $223
per square foot.
• Same-stores sales grew 2.8%, marking our 25th
consecutive year of same-store sales growth.
• We reported net income of $1.065 billion or $3.49
per diluted share.
• Cash flow from operations increased by 8.4% to $1.3
billion.
In 2014, we delivered on our commitment to increase
shareholder value. We invested in new store growth,