Dollar General 2009 Annual Report Download - page 7
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8
Significant Opportunity
for Growth
In 2010, we plan to open 600 new
customer-centric neighborhood
stores within our existing 35
states. In fact, we have significant
opportunity for future growth
both in our current states and in
new markets.
as of January 29, 2010
8,828
stores in
35 states
We Proudly Sell Top National Brands
Our customers trust us to always have their favorite brands in food,
candy, pet supplies, health and beauty, home cleaning and paper
products. Dollar General sells products from America’s most-trusted
manufacturers such as Procter & Gamble, Kimberly-Clark, Unilever,
Kellogg’s, General Mills, Nabisco, PepsiCo and Coca-Cola, to name a few.
Non-Consumables and
Seasonal Products are Part
of Our Image Revolution
Quality, trend-relevant designs
and colors, updated brands and
attractive new packaging define
our strategy to drive sales of
non-consumables with merchan-
dise our customers trust.
developed a new customer-centric format for our new
stores, relocations and remodels, dramatically enhancing
in-store convenience and the overall shopping experience.
The fresh, bright, clean look of our store branding initiative
resonates “the NEW Dollar General,” with our new logo,
bright yellow carts and baskets, updated outdoor signs and
strong messaging throughout our stores communicating
our value and convenience.
Increasing Gross Margin
We’ve made important positive changes to the processes
we use to manage our gross margin. Under new leadership
and with the help of more sophisticated and comprehen-
sive category management processes and analyses, we
expanded our gross profit rate to record levels in 2009,
even while managing a higher mix of consumable items,
which typically have lower gross profit rates. Notably, we
have plans to continue to improve.
Our category management processes help guide us in
merchandise selection, pricing decisions and cost optimiza-
tion, including our net purchase costs from vendors, as well
as our distribution and transportation costs, and handling
costs in the stores. These processes also encompass
merchandise placement and presentation in the stores,
assisting us in our efforts to increase sales of higher margin
items and reduce inventory shrinkage.
We are committed to our strategy of providing national
brands at competitive everyday low prices. We accept
vendor coupons and work closely with our national brand
suppliers in promoting their products. However, we are also
sharply focused on expanding our private brands, which
generally contribute to higher gross profit rates. In addition
to the upgraded quality of our private brand items, we have
completely redesigned the packaging of our brands to
convey that our products are fresh and inviting. In two
years, we have more than doubled the number of private