Dollar General (NYSE: DG) is set to boost brick-and-mortar locations by building larger stores and expanding its new chain, Popshelf, to reach suburban customers. The company revealed plans for the year to open 1,050 stores, reconstruct 1,750 locations and relocate 100 more.
The American chain reported financial results for its 2020 fourth quarter, ending January 29, which highlighted a Net Sales increase of 17.6%. Furthermore, same-store sales rose 12.7%, and annual cash flow is up 73.2% to USD3.9 Billion.
“We are pleased with our strong finish to fiscal 2020, and I thank all of our associates for their extraordinary efforts over the past year to support our customers, our communities and each other,” said Todd Vasos, Dollar General’s chief executive officer. “Despite a challenging operating environment, our team members have remained steadfast in their dedication to fulfilling our mission of Serving Others, resulting in exceptional fourth-quarter and full-year financial results.”
Amid the new construction of stores, customers will experience larger spaces with more merchandise. Additionally, the company is releasing more branding for Popshelf through new locations.
Vasos made the case to investors on why they should continue to believe in the company, stating that the retailer can increase profits by growing its footprint and selling non-consumable items at greater prices than food. Chief Operating Officer Jeff Owen communicated that the company may add up to 17,000 locations throughout the country, doubling its footprint.
“Overall, our real estate pipeline remains robust and we are excited about the significant new store opportunities ahead,” he said.