Here we will see about the Sneak Peek Into The Dollar General Statistics
Established in the name of J.L Turner & son, in 1939 as a family-owned discount retail company, acquired the name ‘The Dollar General Corporation’ in 1955. The theme of their business is to provide a wide range of essential livelihood products with costs not exceeding $1.
With an investment of $5000 in the beginning, the corporation raised its annual sales above $2 million by the early 1950s, that’s just 20 years.
The statistics of this corporation already seem fabulous and worth researching.
Where Does Dollar General Stand today?
For the year 2020, the standalone net sale of Dollar General was estimated at approximately $33.75 billion. The simple idea of retailing one dollar products of James Turner was taken over by his son Cal Turner after his demise. Later led by Cal Junior, the variety store company turned into a billion-dollar franchise, within the time span of 50 years.
They went public in the year 1968 with annual sales of above $40 million and net income being approximately $1.5 million.
Under Cal junior’s leadership, the company owned more than 6000 stores. And under his authority alone the company generated net sales exceeding $6 billion.
In the stretch of just 20 years, the company acquired the rank of #112 in 2020 on the New York Stock Exchange, Fortune 500.
Now Dollar General is one of the most profitable retail businesses in the U.S. with over 17,600 stores in 46 states, out of which, 1626 are in Texas alone, which is the highest number of their stores in a single state. Around 70% of Americans have a dollar general store within 5 miles of their residence.
Looking at the above data, the dollar general corporation is keeping the pace of its consistent growth and hence it is essential to dig a little deeper and catch the insights of their business model, financial stats and further plans of the lead of the company.
Interesting Facts About Dollar General
J. L. Turner started to acquire bankrupt retail grocery stores during the Great Depression of 1929 which turned out to be of immense help for him to gain knowledge and skills for business.
The corporation focused on rural areas, where the target audience is eager to buy their favourite brands and regular items for a better lifestyle at much cheaper rates. This strategy helped them gain consumer support and an expanded community reach.
During the Great Depression, unemployment, poverty and deflation sky-rocketed. Multiple Dollar General stores created many jobs. They even paid around 7% above average salary rates to its employees.
They further expanded their horizons by investing time and revenue in eCommerce as well that further augmented their community reach.
The company invested rigorously in expanding their chain of stores to neighbouring states as well, and that too in a very short span of time. Their idea was unique and was required by the community, to which their accurate business strategy was an add-on.
Going for a wide variety of products helped their business to thrive. They sold grocery, toys, seasonal goods, electronics, vehicle tools, skincare, health, beauty, and baby products. And as wide their service range as their consumers.
Their financial performance has been very satisfying for over a decade with consistently raising revenue and net profit. For the year 2021, Quarterly results as recorded in October 2021, the net revenue of Dollar General stands at $8.52 billion. However, the net profit margin, operating income, and cash on hand have decreased for the above mentioned quarter. But there is consistent growth in annual revenue.
Recently it has been in the news that the company is planning to target wealthier customers of suburbs with a new business model and name which is surprisingly different from their traditional values and strategy of the business. Popshelf is the name for their stores in the suburbs, and today there are already 30 stores. And they are willing to open about 1000 stores in the span of four coming years.
Further details cannot be accurately predicted if the new business model will be a success but one thing is for sure that it is a big game and this will lead to further growth of the corporation in terms of revenue according to the company’s expectations. However, the downside recently has been their violations of safety measures in light of pandemic in their stores situated in rural areas. It has been quite in the news for the past weeks.
Conclusion
The history, business model, strategies, and ongoing advancement of the Dollar General Corporation is quite really interesting. Their financial performance and its statistics are worth keeping records of to gain valuable insights into the retail business.
Frequently Asked Questions
- Is Dollar General owned by Walmart?
No, Dollar General has initially been a family-owned business that went public on New York Exchange in 1968 and had many successors. However, it was fully occupied by private equity investors in the year 2007 which was further acquired by affiliated investment groups and some other equity investors for $6.9 billion in 2007 alone.
- Is Dollar General, Dollar Tree, and Family Dollar the same?
No, these are three different corporations. However, Family Dollar is now acquired by Dollar Tree and while they work on different models, the parent company is Dollar Tree.
