Dollar General Invests $100 Million Towards Brand Growth in 2023
Dollar General is prepping for the future with a $100 million investment in its stores.
The affordable retailer, whose products retail between $1 to $1.25, is rapidly expanding its presence based on high fourth-quarter sales that concluded on Feb. 3, 2023. Dollar General’s advancements during the past 2022 fiscal year included beginning nearly 3,000 real estate projects, increasing its tractor fleet and opening new distribution centers, according to Business Wire. All are contributing factors of its latest venture: putting $100 million towards increasing sales with additional worker hours, raising store standards and enhancing in-store customer experiences.
“Building on the investments we made in 2022, and the substantial progress we have made in our supply chain, we believe this incremental investment will yield strong returns as we continue creating long-term sustainable growth and value for our shareholders,” said Jeff Owens, Dollar General’s CEO, in a statement.
Owens also clarified Dollar General’s investment came from a rise in its market shares and growing customer base.
“Our fourth-quarter sales results were strong, although below our expectations, and we are pleased with continued market share gains in both consumables and non-consumables, as well as continued growth with new and existing customers,” Owens said. “We want to thank our more than 170,000 associates for their commitment to serving our customers, communities, and each other in this challenging economic and operating environment.”
Indeed, Dollar General’s 2022 sales were on a rise. By the end of the year, the brand’s fourth-quarter net sales rose by 17.9% to $10.2 billion — a sharp rise compared to its $8.7 billion fourth-quarter sales in 2021. The sales boost was chalked up to new store sales, as well as increased sales — with a rise in transaction amounts, as well — from pre-existing store locations. Consumable products like food and drinks were notably part of this growth, while sales of categories like home, seasonal products and apparel declined.
As FN previously reported, Dollar General is anticipating opening 1,000 new stores in 2023. Previously, the brand also went viral on multiple occasions — including an employee’s TikTok video disputing a $0.50 promotional raise and a $1.6 million fine for violating worker safety in four of its Alabama, Florida and Georgia-based stores in 2022.
