Dollar General (NYSE:DG) has announced that it will increase the work hours given to employees in order to help improve 11,800 stores. The retailer tested the plan at select locations and now the new labor model will be expanded throughout the year.
The store anticipates that the added labor costs will affect Dollar General's profits this year, reported Nasdaq. However, the company, which employees more than 105,000 people, wanted to improve store efficiency as its rivals, Family Dollar (NYSE:FDO) and Dollar Tree (NASDAQ:DLTR), merge and big-box retailers continue to pick up foot traffic. After losing the bid for Family Dollar, Dollar General announced last week that it would expand into three new states.
Dollar General's full-time employees, and about 12 percent of its part-time employees, will now make more than the minimum wage of $7.25 an hour. After five months with the retailer, employees are able to move up to $9 an hour, which is what Walmart recently raised its minimum wage to.
"In terms of what we're paying, we feel pretty comfortable," Dollar Tree's Chief Executive Richard Dreiling told Nasdaq. "We're going to continue to monitor the landscape and we'll assess or make any adjustments that we need to make."
-See this Nasdaq article
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