Dollar General Plans to Accelerate New-Store Openings

Discount retailer reveals growth forecast

Todd Vasos Dollar General

Todd Vasos

GOODLETTSVILLE, Tenn. -- Dollar General Corp. is outlining its strategic store growth plans.

Ahead of its 2016 Investor Conference, the discount retailer said it plans to open approximately 900 new stores and relocate or remodel 875 stores in fiscal 2016. For fiscal 2017, the company is forecasting approximately 1,000 new stores and relocations or remodels of about 900 stores, in line with its growth model of 6% to 8% square footage growth.

“Dollar General has a powerful strategic plan that enables us to drive both the top line and bottom line to deliver strong financial returns as outlined in our growth model over the long-term,” said Todd Vasos, Dollar General’s CEO. “With strong cash flow and an efficient capital structure, we believe that we have a compelling opportunity to invest for growth while also returning cash to shareholders through consistent share repurchases and anticipated quarterly dividends.”

The company recently announced that it is testing a new 6,000-square-foot, convenience-store-like small-format retail outlet that places a greater emphasis on consumable products and other items that “meet the needs of our urban customers,” Vasos said during the company's recent fourth-quarter earnings call.

In September 2015, Vasos teased a new Dollar General prototype that would offer "a more customer-friendly shopping experience [where] the consumer will be able to and have faster, more convenient checkout." He did not specify the prototype's square footage but said that it would "be rolled out in 2016 for all new stores, relocations and remodels."

Goodlettsville, Tenn.-based Dollar General operates 12,483 stores in 43 states.