Maine and Rhode Island, as well as Oregon, are states where Dollar General expects to set up shop for the first time in 2015. The Tennessee-based retailer made those plans known Thursday while reporting its fiscal 2014 third quarter results.
“For 2015, we have plans to open 730 new stores and will have a presence in 43 states by the end of the year…,” said Rick Dreiling, Dollar General’s chairman and CEO. “In addition, we will look to relocate or remodel an additional 875 stores, with a focus on our highly productive, low cost, ‘life cycle’ remodels. We have continued confidence that we are well-positioned for sustainable growth and creation of shareholder value.”
Dollar General already operates more than 11,500 stores.
The company reported net income of $236 million, or $0.78 per diluted share, in the 2014 third quarter, ended Oct. 31, compared to net income of $237 million, or $0.74 per diluted share, in the 2013 third quarter.
Net sales increased 7.8 percent to $4.72 billion compared to $4.38 billion in the 2013 third quarter. Same-store sales increased 2.8 percent compared to last year’s third quarter, representing Dollar General’s 27th consecutive quarter of year-over-year increases in both customer traffic and average transaction amount in its same stores. Consumables sales continued to increase at a higher rate than non-consumables overall, with the most significant growth related to tobacco products, perishables and candy and snacks.
The company says it is pleased with the continued solid same-store sales growth in home products and apparel in the third quarter, with strong year-over-year sales growth percentages in ladies, men’s and boys’ apparel, apparel accessories and home décor.
“Our affordability-focused initiatives continued to gain traction with our customers in the third quarter, and our same-store sales growth of 2.8 percent reflected increases in both customer traffic and average ticket for the 27th consecutive quarter,” said Dreiling. “We continued to grow our market share in consumables, and we are very pleased with the performance of our home and apparel categories. Importantly, we are seeing a significant step up as we start the holiday season, and we expect to achieve same-store sales growth of approximately 5 percent for the fourth quarter.”
Dreiling also noted that Dollar General remains “committed to acquiring Family Dollar.”
“We expect to provide an update on our offer in time for Family Dollar shareholders to review such information prior to the Family Dollar shareholders’ meeting scheduled for Dec. 23, 2014,” he said.