Dollar General (NYSE:DG) intends to accelerate expansion with plans to add 1,000 new stores in 2017, on top of 900 new stores planned for 2016.
Dollar General has been growing retail square footage at the rate of 6 to 8 percent annually. Company executives are hosting its investor conference today and will outline opportunities for growth going forward.
"Dollar General has a powerful strategic plan that enables us to drive both the top line and bottom line to deliver strong financial returns as outlined in our growth model over the long-term," said CEO Todd Vasos. "With strong cash flow and an efficient capital structure, we believe that we have a compelling opportunity to invest for growth while also returning cash to shareholders through consistent share repurchases and anticipated quarterly dividends."
Dollar General has been growing sales between 7 and 10 percent per year and realizing same-store sales gains of 2 to 4 percent.
The retailer has also been opening smaller formats of less than 6,000 sq. ft. of selling space, roughly 20 percent smaller than the average store. Thirty such units are already in operation and 80 more will be added this year.
-See this Dollar General press release
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