Dollar General is moving forward steadily, while Dollar Tree is busy closing stores: the two major low-price chain retailers in the United States are in very different situations
2024-04-11
Dollar General is moving forward steadily, while Dollar Tree is busy closing stores: the two major low-price chain retailers in the United States are in very different situations
After tough fourth quarter, Dollar General gives optimistic forecast for 2024
Although Dollar General faced declining sales and sharp profits in the fourth quarter of its recently ended fiscal year, full-year results hit the high end of expectations, leaving the company optimistic about its prospects in 2024. Company executives said that by implementing the "Back to basics" strategy, they believe they can improve operating performance and see huge market opportunities.
Sales for the quarter ended February 2 were $9.9 billion, down 3.4%. The decline was primarily due to sales being opened for one fewer week compared to the same period last year, as well as the impact of store closures. However, the company also noted that this decline was partially offset by positive contributions from new stores and same-store sales growth. Consumer goods categories performed strongly, but competition declined in home products, seasonal products and apparel categories.
Quarterly net profit was US$401.8 million, a decrease of 39.0%. Still, the company's sales for the full fiscal year rose 2.2% to $38.7 billion, driven by new stores and same-store sales growth. Driven by daily consumables, comparable same-store sales increased by 0.2%. However, sales in the home furnishings, seasonal products and apparel categories declined compared to the same period last year.
Looking forward to 2024, Dollar General expects net sales to increase 6.0% to 6.7% this year, and same-store sales are expected to increase 2.0% to 2.7%. To achieve this goal, the company plans to open approximately 800 new stores, renovate 1,500 stores, and relocate 85 stores. These initiatives will further enhance sales performance and market share.
