Dollar General 2004 Annual Report Download - page 8

Download and view the complete annual report

Please find page 8 of the 2004 Dollar General annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 66

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66

We demand quality products and the right prices from our vendors, and we value our relationships with vendors who
meet that demand. We will continue to develop these strong vendor relationships. As part of that effort, we are planning
several projects with key vendors in 2005 to enhance their brands in our stores.
We plan to aggressively increase our store base in 2005. To meet the expanding needs of our customers, as well as the
growing number of new customers, we must grow as well. We plan to open approximately 730 new stores, including
30 Dollar General Markets, a larger format store concept with an expanded food section. We now operate in 30 states,
and we expect to continue moving westward in 2005. We plan to maintain a healthy balance of urban, suburban and
rural stores. In addition, we are very encouraged by our customers’ response to our 15 existing Dollar General Markets.
These new format stores are proving that we can become a primary destination for our core customers and that we can
attract new customers as well.
We also will continue to focus on our primary initiatives in 2005. With EZstore now implemented in more than 750 stores,
we are beginning to realize the benefits we expected. We remain convinced this effort will enhance our ability to manage a
large number of small stores. While EZstore fundamentally changes the way we replenish our stores, it also has a dramatic
impact on management effectiveness at the store level. For those reasons, we plan to invest approximately $100 million
of capital expenditures over the next two years in store and distribution center infrastructures to complete the implemen-
tation of the EZstore initiative. The integration of merchandise planning with distribution, which was completed in 2004,
combined with new investments in our planning systems, should also contribute to this store improvement effort.
As I mentioned earlier, we expect to open our eighth distribution center later this year on time and on budget. We are
planning to open a ninth distribution center in 2006.
We will continue to enhance our replenishment efforts and our merchandis-
ing productivity. We will continue to invest in our information technology
infrastructure and have now converted to a new stock ledger system, which
will provide more detailed financial information at the store level.
“The women and men who operate our
Dollar General stores are the key to our
Company’s continued growth and success.”
Net Sales
Fiscal years
’00
$4,551
’01
$5,323
’02
$6,100
’03
$6,872
’04
$7,661
Earnings Per Share
Net Sales
Earnings Per Share
’00
$0.20
$0.50
’01
$0.61
$0.66
’02
$0.78
$0.74
’03
$0.89
$0.92
’04
$1.04
$1.04
0.0
0.2
0.4
0.6
0.8
1.0
1.2
0
1000
2000
3000
4000
5000
6000
7000
8000
Fiscal years
as reported
excluding restatement-
related items
(Dollars in millions)
6