Dollar General 2015 Annual Report Download - page 76

10-K
PART I
ITEM 1. BUSINESS
General
We are among the largest discount retailers in the United States by number of stores, with
12,575 stores located in 43 states as of February 26, 2016, with the greatest concentration of stores in
the southern, southwestern, midwestern and eastern United States. We offer a broad selection of
merchandise, including consumables, seasonal, home products and apparel. Our merchandise includes
high quality national brands from leading manufacturers, as well as comparable quality private brand
selections with prices at substantial discounts to national brands. We offer our merchandise at everyday
low prices through our convenient small-box locations.
Our History
J.L. Turner founded our Company in 1939 as J.L. Turner and Son, Wholesale. We were
incorporated as a Kentucky corporation under the name J.L. Turner & Son, Inc. in 1955, when we
opened our first Dollar General store. We changed our name to Dollar General Corporation in 1968
and reincorporated in 1998 as a Tennessee corporation. Our common stock was publicly traded from
1968 until July 2007, when we merged with an entity controlled by investment funds affiliated with
Kohlberg Kravis Roberts & Co. L.P., or KKR. In November 2009 our common stock again became
publicly traded, and in December 2013 the entity controlled by investment funds affiliated with KKR
sold its remaining shares of our common stock.
Our Business Model
Our long history of profitable growth is founded on a commitment to a relatively simple business
model: providing a broad base of customers with their basic everyday and household needs,
supplemented with a variety of general merchandise items, at everyday low prices in conveniently
located, small-box stores. We continually evaluate the needs and demands of our customers and modify
our merchandise selections and pricing accordingly, while remaining focused on increasing profitability
and returns for our shareholders.
Our operating priorities are summarized as follows: 1) driving profitable sales growth, 2) capturing
growth opportunities, 3) enhancing our position as a low-cost operator, and 4) investing in our people
as a competitive advantage. For more information on these operating priorities, see Management’s
Discussion and Analysis of Financial Condition and Results of Operations, under the heading
‘‘Executive Overview’’, included in Part II, Item 7 of this report.
In fiscal year 2015, we achieved our 26th consecutive year of same-store sales growth. This growth,
which has taken place in a variety of economic conditions, suggests that we have a less cyclical business
model than most retailers and, we believe, is a result of our compelling value and convenience
proposition.
Compelling Value and Convenience Proposition. Our ability to deliver highly competitive prices in
convenient locations and our easy ‘‘in and out’’ shopping format create a compelling shopping
experience that distinguishes us from other discount retailers as well as convenience, drug and grocery
retailers. Our slogan ‘‘Save time. Save money. Every day!’’ summarizes our appeal to customers. We
believe our ability to effectively deliver both value and convenience allows us to succeed in small
markets with limited shopping alternatives, as well as to profitably coexist alongside larger retailers in
2