uploads///

Understanding Dollar General’s Key Product Offerings

By

Apr. 17 2017, Updated 4:45 p.m. ET

An introduction to Dollar General

Dollar General (DG) is the largest discount store retailers in the United States in terms of total revenue generated. The company clocked total sales of $22 billion in the last 12 months (or TTM). Dollar Tree (DLTR) is a close second with TTM sales of $20.7 billion.

Article continues below advertisement

Brief history

Dollar General was founded by J.L. Turner as J.L. Turner and Son, Wholesale in 1939. The first Dollar General store was opened in 1955, and the company changed its name to Dollar General Corporation in 1968.

Its common stock traded from 1968 until the time company was acquired by Kohlberg Kravis Roberts’ (KKR) affiliated investment fund in July 2007. Stock trading resumed once again in November 2009. In December 2013, KKR completely exited Dollar General.

Key product offerings

Consumables are Dollar General’s largest merchandising category and account for more than 75% of its total sales. Packaged food, tobacco, perishables, paper and cleaning products, and health and beauty products are the key consumables sold.

The second-largest category is that of seasonal products, which include decoration items, small electronics, toys, and stationery. Seasonal products form around 12% of the company’s topline.

The remaining 13% comes from the sales of home products (kitchen supplies, small appliances, and cookware) and apparel and accessories.

Investors looking for exposure to Dollar General through ETFs can consider the Van Eck Retail RTF (RTH), which invests 2.7% of its total holdings in the company.

Read the next part of this series for an overview of Dollar General’s business model.

Advertisement

More From Market Realist

  • BioNano Genomics Saphyr system
    Company & Industry Overviews
    BioNano Genomics (BNGO) Stock Looks Like a Buy, Solid Opportunity
  • Delta aircraft
    Company & Industry Overviews
    Delta Air Lines Updates Mandatory Vaccine Policy, Explained
  • AMC advertisement in walkway
    Company & Industry Overviews
    Why It's Time for Most Investors to Sell AMC Entertainment Stock
  • 100 Thieves founder Matthew Haag
    Company & Industry Overviews
    Why Growing Esports Company 100 Thieves Isn't Publicly Traded
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.