Dollar General 2015 Annual Report Download - page 77

10-K
more competitive markets. Our value and convenience proposition is evidenced by the following
attributes of our business model:
•Convenient Locations. Our stores are conveniently located in a variety of rural, suburban and
urban communities. We seek to locate our stores in close proximity to our customers, which
drives customer loyalty and trip frequency and makes us an attractive alternative to large
discount and other large-box retail and grocery stores.
•Time-Saving Shopping Experience. We also provide customers with a highly convenient, easy to
navigate shopping experience. Our small box stores are easy to get in and out of quickly. Our
product offering includes most necessities, such as basic packaged and refrigerated food and
dairy products, cleaning supplies, paper products, health and beauty care items, greeting cards,
basic apparel, housewares, hardware and automotive supplies, among others. Our convenient
hours and broad merchandise offering allow our customers to fulfill their routine shopping
requirements and minimize their need to shop elsewhere.
•Everyday Low Prices on Quality Merchandise. Our research indicates that we offer a price
advantage over most food and drug retailers and that our prices are highly competitive with even
the largest discount retailers. Our ability to offer everyday low prices on quality merchandise is
supported by our low-cost operating structure and our strategy to maintain a limited number of
items per merchandise category, which we believe helps us maintain strong purchasing power.
We offer quality nationally advertised brands at these everyday low prices in addition to offering
our own comparable quality private brands at value prices.
Substantial Growth Opportunities. We believe we have substantial long-term growth potential in the
U.S. We have identified significant opportunities to add new stores in both existing and new markets.
In addition, we have opportunities to relocate or remodel locations within our existing store base to
better serve our customers. Our attractive store economics, including a relatively low initial investment
and simple, low-cost operating model have allowed us to grow our store base to current levels and
provide us significant opportunities to continue our profitable store growth strategy.
Our Merchandise
We offer a focused assortment of everyday necessities, which drive frequent customer visits, and
key items in a broad range of general merchandise categories. Our product assortment provides the
opportunity for our customers to address most of their basic shopping needs with one trip. We sell
high-quality nationally advertised brands from leading manufacturers. Additionally, our private brand
consumables offer even greater value with options to purchase value items and national brand
equivalent products at substantial discounts to the national brand.
Consumables is our largest merchandise category and has become a larger percentage of our total
sales in recent years as indicated in the table below. Consumables include paper and cleaning products
(such as paper towels, bath tissue, paper dinnerware, trash and storage bags, laundry and other home
cleaning supplies); packaged food (such as cereals, canned soups and vegetables, condiments, spices,
sugar and flour); perishables (such as milk, eggs, bread, frozen meals, beer and wine); snacks (such as
candy, cookies, crackers, salty snacks and carbonated beverages); health and beauty (such as
over-the-counter medicines and personal care products, such as soap, body wash, shampoo, dental
hygiene and foot care products); pet (such as pet supplies and pet food); and tobacco products.
Seasonal products include decorations, toys, batteries, small electronics, greeting cards, stationery,
prepaid phones and accessories, gardening supplies, hardware, automotive and home office supplies.
Home products include kitchen supplies, cookware, small appliances, light bulbs, storage
containers, frames, candles, craft supplies and kitchen, bed and bath soft goods.
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