Dollar General posts a record 1Q
Staff Staff -- Furniture Today, June 2, 2009
Goodlettsville, Tenn. – “Robust” sales across the store and lower costs helped send Dollar General’s profits skyrocketing during the first quarter to $83.0 million from $5.9 million in last year’s 1Q.
“While consumables again set the pace, we are pleased to report strong sales in seasonal, home and our apparel categories,” chairman and ceo said Rick Dreiling told analysts during this morning’s conference call.
Sales jumped 15.7% to approximately $2.8 million, with comps up 13.3% on top of 5.4% increase in last year’s quarter. Traffic and ticket were both up as Dollar General’s core customers shopped more often and the chain attracted new customers, executives said.
Although the retail environment remains challenging, “our momentum continued to accelerate during the first quarter,” said Dreiling.
Dollar General also improved average markup thanks to lower product costs, improved efficiencies in its distribution centers and curbed shrink.
While its sees the competitive environment as largely promotional, Dollar General is sticking with its Every Day Low Price strategy and is working to improve its EDLP marketing message, he said.
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