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Dollar General’s Sales Growth: What Wall Street Expects



Expectations for fiscal 2018

Dollar General (DG) expects its sales to rise about 9.0% in fiscal 2018, which ends on February 1, 2019. This growth rate will be an improvement compared to the 6.8% and 7.9% sales growth in fiscal 2017 and 2016, respectively. Analysts expect Dollar General’s sales to grow about 9.0% to $25.6 billion in fiscal 2018. Currently, analysts expect the company’s sales to increase 7.5% to about $27.5 billion in fiscal 2019.

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Initiatives to improve sales

Dollar General is trying to boost its sales by expanding its store network and remodeling its existing stores. The company is on track to open 900 new stores, remodel 1,000 mature stores, and relocate 100 stores in fiscal 2018. One of the key aspects of the company’s remodeling efforts is to increase the number of coolers in its stores to offer more perishable items.

As of the end of fiscal 2018’s third quarter, Dollar General operated 15,227 stores. The company aims to open 975 new stores, remodel about 1,000 stores, and relocate about 100 stores in fiscal 2019.

Through its Better-for-You initiative, the company is providing healthier food options to its customers at about 2,700 stores. The company aims to expand this offering to more stores in fiscal 2019. To enhance the sales in its non-consumable categories, Dollar General is testing new and attractive assortment in key categories like home, domestics, housewares, party, and occasion. The company intends to provide a differentiated and limited merchandise assortment that will change throughout the year.

We’ll discuss Dollar General’s earnings in the next part of this series.


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