Dollar General 2009 Annual Report Download - page 4

Rick Dreiling
Chairman and CEO
A Great Year for Dollar General
Dollar General accomplished a great deal in 2009.
Highlights from the year include:
• A sales increase of 12.8% to a record $11.8 billion.
• Same-store sales growth of 9.5%. Notably, we marked our
20th consecutive year of positive same-store sales
growth, which is almost unheard of in the retail industry.
• Expanded gross margin, which increased 201 basis points
to 31.3%.
• A reduction in adjusted selling, general and administrative
expenses as a percentage of sales by 79 basis points.
• Net income of $339.4 million, or $1.04 per diluted share.
Adjusting for several charges related mainly to the IPO,
net income for the full year was $425.1 million, or $1.31 per
diluted share.
• Adjusted Earnings before Interest Taxes, Depreciation and
Amortization (EBITDA) growth of 41%.
• Debt reduction of $734 million.
• The opening of 500 new stores and remodeling or
relocation of an additional 450 stores, which created
about 4,000 new jobs throughout the year.
Our results are testament to the fact that our existing and
new customers are responding extremely well to our value
and convenience proposition.
Our Continued Commitment to Our Associates
At Dollar General we are focused on attracting, developing
and retaining talented employees. This commitment and
the dedication of our store associates were key drivers
of our accomplishments
in 2009.
Through enhanced
training initiatives and a
clear focus on developing
career paths for our store
associates, we have been
able to improve employee
retention at all levels. Our
first employee engagement
survey proved that we have
2
We have worked a great deal on elevating the look and feel
of our stores and enhancing the customer shopping experi-
ence. We’ve also improved our operations and infrastructure,
implemented a new private branding strategy, introduced a
more sophisticated real estate strategy and developed a
more disciplined approach to cost control. As a result,
Dollar General is becoming known as a new and improved
destination for value-conscious, convenience-seeking
customers who are looking for time-saving solutions.
Our efforts not only improved our business and
strengthened our relationships with customers but they also
allowed us to achieve a critical milestone. On November 13,
2009, we rejoined the public equity market, strengthening
our capital structure and providing access to investors, in
order to help us to execute our growth strategy. Having
operated as a private company since July 2007, our initial
public offering was yet another step in a long track record
of success at Dollar General and, notably, was the largest
retail IPO in nearly 14 years.
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 needs,
and helping them make the most of their spending dollars
with a wide selection of quality items at everyday low
prices in conveniently located, easy-to-shop stores. It is by
adhering to this model that we were once again able to
produce exceptional operating results in 2009.
To Our Fellow Shareholders,
Customers, and Employees:
Welcome to the New Dollar General! That’s right! Without question,
we have entered a new era at Dollar General and have laid the right
foundations to support our continuing evolution. In doing so, I believe
we have made great progress in redefining small-box retailing.