Dollar General 2009 Annual Report Download - page 21

Our Competition
We operate in the basic consumer packaged goods market, 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 include Family Dollar, Dollar Tree,
Fred’s, 99 Cents Only and various local, independent operators as well as Walmart, Walgreens, CVS,
Rite Aid, Target and Costco, among others. Certain of our competitors have greater financial,
distribution, marketing and other resources than we do.
We differentiate ourselves 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.
Purchasing large volumes of merchandise within our focused assortment in each merchandise category
allows us to keep our average costs low, contributing to our ability to offer competitive everyday low
prices to our customers. See ‘‘—Our Business Model’’ above for further discussion of our competitive
situation.
Our Employees
As of February 26, 2010, we employed approximately 79,800 full-time and part-time employees,
including divisional and regional managers, district managers, store managers and distribution center
and administrative personnel. We have increasingly focused on recruiting, training, motivating and
retaining employees, and we believe that the quality, performance and morale of our employees have
increased as a result. We currently are not a party to any collective bargaining agreements.
Our Trademarks
We own marks that are registered with the United States Patent and Trademark Office and are
protected under applicable intellectual property laws, including without limitation the trademarks
Dollar General, Dollar General Market, Clover Valley, DG, DG Guarantee and the Dollar
General price point designs, along with variations and formatives of these trademarks as well as certain
other trademarks. We attempt to obtain registration of our trademarks whenever practicable and to
pursue vigorously any infringement of those marks. Our trademark registrations have various expiration
dates; however, assuming that the trademark registrations are properly renewed, they have a perpetual
duration.
We also hold licenses to use various trademarks owned by third parties, including without
limitation an exclusive license to the Bobbie Brooks brand for clothing through March 31, 2011, with
the option to renew it on a year-to-year basis, and a license to the Fisher Price brand for certain items
of children’s clothing through December 31, 2010.
Available Information
Our Web site address is www.dollargeneral.com. We file with or furnish to the Securities and
Exchange Commission (the ‘‘SEC’’) annual reports on Form 10-K, quarterly reports on Form 10-Q,
current reports on Form 8-K, and amendments to those reports, proxy statements and annual reports to
shareholders, and, from time to time, other documents. These documents are available free of charge
to investors on or through the Investor Information portion of our Web site as soon as reasonably
practicable after we electronically file them with or furnish them to the SEC. In addition, the public
may read and copy any of the materials we file with the SEC at the SEC’s Public Reference Room at
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