News

Consumer love for discount proves rewarding for Dollar General

The discount retailer enjoyed big gains in profit, sales not too shabby either.

September 1, 2015

Consumers’ love for low-priced items is proving to be a boon for Dollar General, as the discount retailer’s second quarter saw profits jump 12.3 percent.

The retailer's recent earnings report stated the retailer enjoyed a profit of $282.3 million, $251.3 million above last year’s quarter results.

Sales weren’t too shabby either, according to a Market Watch report, given a 7.9 percent jump, hitting $5.1 billion for the Tennessee-based company.

The robust growth was across all the retailer’s product categories. Chief Executive Officer Todd Vasos told analysts during the recent earnings call that while consumers are buying higher-priced items, there is always at least one $1 dollar item in most shoppers’ carts. All categories posted growth, with the largest increases in area such as candy and snacks, tobacco products, perishables and seasonal items.

"It takes a little bit more time for her to let go of the purse strings a little bit more," Vasos said on Thursday's earnings call, according to Market Watch.

The retailer is in the midst of deploying a new work flow and management model aimed at providing district regional managers to spend more time with location management at its 12,000-plus stores.