Dollar General Emerges from Accounting Onus
Dollar General is emerging from the shadow of accounting errors, which resulted in a nearly $200 million overstatement of earnings, shareholder lawsuits and an investigation by the SEC, with aggressive initiatives designed to enhance its long-term profitability.
New programs include an expanded test of perishables, the rollout of a markdown
program in apparel and seasonal goods, new processes in store operations aimed
at improving productivity and various technology upgrades. As a result of these
efforts, Dollar General expects same store sales to grow five percent to seven
percent this year and earnings before special charges to grow 13 percent to
15 percent.
Moderator Comment: Does the dollar store format and
consumers lend itself to food sales?
Dollar General’s competitor, Family Dollar, doesn’t think
so. It is on the record saying that it has no plans to get into the grocery
business. [George
Anderson – Moderator]