Dollar General reported better-than-expected third-quarter earnings and revenue as price-conscious consumers shopped its stores for groceries and other essentials.
However, in the earnings release, CEO Todd Vasos said he was “not satisfied” with the company’s third-quarter results, including a significant headwind from inventory shrink.
“Over the last several weeks, we have spent significant time reviewing all areas of the business and we have identified key opportunities for improvement both in the near term and over the longer term,” said Vasos, who returned as CEO in October, after serving in the role from June 2015 to November 2022.
The extreme discounter said it expects to open 800 new stores (down from an expected 990 openings in 2023) in fiscal 2024, along with 2,000 remodels and 120 store relocations.
“This is a modest slowdown compared to the number of projects in recent years, which we believe is prudent in this environment,” stated Vasos. The openings will include more stores in rural areas and an emphasis on its larger format.
