In 2008, the company plans to open approximately 200 new Dollar General stores and to relocate or remodel approximately 400 stores. But the main focus will be on increasing same-store sales, part of a four-part plan
"We plan to eventually get more aggressive in growing the chain, but our current focus will be on managing sales productivity in our current box," said Rick Dreiling, the company's recently appointed CEO. In July, Dollar General was acquired by Buck Holdings, L.P., a limited partnership controlled by investment funds affiliated with Kohlberg Kravis Roberts & Co., L.P.
Other parts of the initiative include increasing gross margins, leveraging information technology and improving customer service.
Sales in the fourth quarter were $2.56 billion, essentially flat compared with the previous year. Same store sales rose 0.4%. Net income was $55.4 million compared to $50.1 million in the fourth quarter of fiscal 2006.
For the year, net sales were $9.5 billion, up 3.5% from the previous year. Same store sales increased 2.1%. For the year ended February 1, 2008, the company posted a net loss of $12.8 million compared to net income of $137.9 million the previous year.
Dollar General operates 8,200 neighborhood stores located in 35 states.
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