Dollar General (NYSE:DG) announced plans to relocate 40 stores and enter one new market after purchasing 41 former Walmart Express locations. The move comes just months after Dollar General announced it would increase its smaller store base.
Walmart announced plans to close 269 locations, including 102 Express format stores, six months ago. The acquisition will affect Dollar General stores in 11 states.
"Dollar General is excited to add these locations to our existing store base. We look forward to the opportunity to better serve our customers in these communities by continuing to provide the convenience and value they expect from Dollar General," said Todd Vasos, Dollar General's CEO.
The Express stores on average are 12,000 sq. ft., compared to a 182,000-sq.-ft. Walmart Supercenter and 38,000-sq.-ft. Neighborhood Markets.
The new Dollar General locations will feature the new fresh DG16 concept. This includes additional sales floor area with expanded products such as fresh meat and product. Thirty-seven of the 41 locations will have gas stations.
The new locations are former Walmart stores in Alabama, Arkansas, Florida, Georgia, Kansas, Louisiana, Mississippi, North Carolina, South Carolina, Oklahoma and Tennessee.
In total, Dollar General has plans to increase its store count by 2,000 in the next two years, reported The Tennessean. Last year the company opened 730 new stores, remodeled or relocated 881 stores and closed 36.