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Mergers & Acquisitions

Dollar General Pours on the Gas

Will sell fuel at most of its newly acquired Walmart Express small-format sites

GOODLETTSVILLE, Tenn. -- Although it has experimented with gasoline before, Dollar General Corp. is making a major leap into fuel retailing with the purchase of 41 former Walmart Express locations. The discount retailer intends to operate the fueling stations at 37 of these locations, it said.

In October 2013, Dollar General launched a test selling fuel at one of its larger-format Dollar General Market sites in Hanceville, Ala. The chain partnered with Gainesville, Ga.-based Mansfield Oil on the pilot.

Wal-Mart Stores Inc. scuttled the small-format Walmart Express concept earlier this year and put the stores up for sale.

As reported in a McLane/CSP Daily News Flash, the 41 sites are in 11 states: Alabama, Arkansas, Florida, Georgia, Kansas, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina and Tennessee.

Dollar General said it anticipates relocating 40 existing Dollar General stores into the acquired sites by October 2016 and entering one new market as part of the purchase.

“Dollar General is excited to add these locations to our existing store base. We look forward to the opportunity to better serve our customers in these communities by continuing to provide the convenience and value they expect from Dollar General,” said Todd Vasos, Dollar General’s CEO.

The newly relocated stores will feature the chain’s new “DG16” layout with additional sales floor square footage with expanded offerings such as fresh meat and produce, according to the company.

Dollar General did not disclose the terms of the transaction.

Bentonville, Ark.-based Wal-Mart announced in January that it would close and sell its 102 approximately 12,000-square-foot Walmart Express locations among a total of 269 stores of various formats in the United States and globally as part of a strategic realignment.

Brookshire Grocery Co., Tyler, Texas, announced in early July the acquisition of 25 former Walmart Express stores, which it will open under as the company’s new Spring Market grocery brand.

Goodlettsville, Tenn.-based Dollar General offers products that are frequently used and replenished, such as food, snacks, health and beauty aids, cleaning supplies, basic apparel, housewares and seasonal items at low everyday prices in convenient neighborhood locations. With 12,719 stores in 43 states as of April 29, 2016, Dollar General is among the largest discount retailers in the United States. In addition to private-label brands, Dollar General sells products from manufacturers such as Procter & Gamble, Kimberly-Clark, Unilever, Kellogg’s, General Mills, Nabisco, Hanes, PepsiCo and Coca-Cola.

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