Presentation on theme: "Wynne Barton Dollar General."— Presentation transcript:
Wynne Barton Dollar General
Why Dollar General?
DG Timeline J.L. Turner and Cal Turner Sr. opened J.L. Turner and Son Wholesale in Scottsville, KY Springfield, KY Turner’s Department Store was converted into the first Dollar General Store Exceeded the $1 million net income mark DG goes public New warehouse and office built in Scottsville, KY $100 million sales mark Acquires 280 stores from P.N. Hirsh Division of Interco Inc Acquires 206 stores and a warehouse from Eagle Family Discount Stores Launches GED/Learn to Read Program
DG Timeline Ronald Reagan honors DG for its literacy program th anniversary 1,300 Stores in 23 states; 7,000 employees Opens new distribution center in Ardmore, OK Exceeds $2 Billion sales and $100 Million net income ,000 store mark; 25,000 employees. New distribution center in South Boston, VA New distribution center Indianola, MS. Sales over $3B New distribution center in Fulton, MO GHQ moves to Goodlettsville. New DC in Alachua, FL ,000 store mark. Exceeds $5 Billion in sales. Opened new DC in Zanesville, OH
DG Timeline ,000 th store and $6B in sales David Perdue named chairman and CEO th distribution center in Jonesville, SC. $8B in sales ,000 store mark. New DC in Marion, Ind. $9B sales DG goes private after being acquired by PE firm Rick Dreiling is named CEO DG goes public ,000 th store in Fountain Run, KY Launches Ecommerce website ,000 store mark and 2 more distribution centers
DG- Where are they now?
A Typical Dollar General Store Is roughly 7,200sf Freestanding stores (63%) as well as strip mall stores (37%) 10k-12k SKU per store
Dollar General Store: Key to Success “Convenience, quality brands and low prices…” -Dollar General 10-K 2012 Only the most popular brands and sizes Procter and Gambler, Kimberly Clark, Unilever, Kellogg’s, General Mills, and Nabisco
Business Model “Providing a broad base of customers with their basic everyday and household needs, supplemented with a variety of general merchandise items, at everyday low prices in conveniently located, small-box stores.” - Dollar General- 10-K Report
Business Model Convenient Locations- 70% serving communities with populations of less than 20,000. Majority of customers live within three to five miles. Time-Saving Shopping Experience- Product offering includes most necessities. Convenient hours and broad merchandise offering allow customers to fulfill their routine shopping requirements and minimize their need to shop elsewhere. Everyday Low Prices on Quality Merchandise. Low prices on quality merchandise Low-cost operating structure Maintain a limited number of SKUs per category Maintain strong purchasing power.
Measuring Success Lean expense structure is the foundation YE2012 expenses as a percentage of sales were 21.66% Walmart expenses as a percentage of sales YE2012: 19.21% Average DG does $1.5M in annual sales: break it down… 20 customers per hour for 12 hours per day spending an average of $17.12… $4,109/day… $28,846/week… $1.5M/year Stock Price: up 138% today since November 2009