Dollar General 2006 Annual Report Download - page 11

Employees
As of March 2, 2007, we employed approximately 69,500 full-time and part-time
employees, including divisional and regional managers, district managers, store managers, and
DC and administrative personnel, compared with approximately 64,500 employees on March 3,
2006. Management believes our relationship with our employees is generally good, and we are
not a party to any collective bargaining agreements.
Competition
We operate in the discount retail merchandise business, which is highly competitive with
respect to price, store location, merchandise quality, assortment and presentation, in-stock
consistency, and customer service. We compete with discount stores and with many other
retailers, including mass merchandise, grocery, drug, convenience, variety and other specialty
stores. These other retail companies operate stores in many of the areas where we operate and
many of them engage in extensive advertising and marketing efforts. Our direct competitors in
the dollar store retail category include Family Dollar, Dollar Tree, Fred’ s, 99 Cents Only and
various local, independent operators. Competitors from other retail categories include Wal-Mart
and Walgreens, among others. Certain of our competitors have greater financial, distribution,
marketing and other resources than we do.
The dollar store category differentiates itself from other forms of retailing by offering
consistently low prices in a convenient, small-store format. We believe that our prices are
competitive due in part to our low cost operating structure and the relatively limited assortment
of products offered. Historically, we have minimized labor by offering fewer price points and a
reliance on simple merchandise presentation. We attempt to locate primarily in second-tier
locations, either in small towns or in the neighborhoods of more densely populated areas where
occupancy expenses are relatively low. We maintain a strong purchasing power position due to
our leadership position in the dollar store retail category, which centers on a focused assortment
of merchandise.
Trademarks
Through our subsidiary, Dollar General Merchandising, Inc., we own marks that are
registered with the United States Patent and Trademark Office including the trademarks Dollar
General®, Dollar General Market®, Clover Valley®, American Value®, DG Guarantee® and
the Dollar General price point designs, along with certain other trademarks. We attempt to obtain
registration of our trademarks whenever practicable and to pursue vigorously any infringement
of those marks. Our trademarks have various expirations dates; however, assuming that the
trademarks are properly renewed, they have a perpetual duration.
Available Information
Our website address is www.dollargeneral.com. We make available through this address,
without charge, our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports
on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or
15(d) of the Exchange Act as soon as reasonably practicable after they are electronically filed or
furnished to the SEC.
9