Dollar General

Topics: Dollar General, Variety store, Dollar Tree Pages: 1 (314 words) Published: April 24, 2011
Dollar General SWOT
Dollar General Corp. is a chain of variety stores operating in 35 U.S. states. The chain operates over 9,000 stores and its headquarters is located in Goodlettsville, TennesseeStrengths Strengths
Unlike its competitors, Dollar General place new stores within the communities. Dollar General feels that filling the role of the “neighborhood store” is a big part of its success. In some cases, stores are within a few city blocks of each other. Dollar General typically serves communities that are too small for Wal-Marts. Wal-Mart targets all income level households, whereas DG serve “need-to” shoppers. DG, which are normally in towns with less than 20,000 people, has targeted shoppers. 81% are females 44% are of the age of 55 and most of the customers live within five miles of the store. Dollar General offers both name brand and generic merchandise — including off-brand goods and closeouts of name-brand items in the same store, often on the same shelf.

Neighborhood FriendlyNoDollar General MarketEconomy (fuel, employment Targeted shopper baseNew StoresWal-Mart Overlap
Financial Health RelativelyImproving sales productivityDollar Tree (largest competitor in North America) Large Scale
Valued Weaknesses
Some DG has high theft and threats because majority of them do not have video cameras. No job security to employees. Opportunities
Dollar General earning is 4.3 dollars for every dollar of sales. DG surpassed Wal-Marts’ benchmark of 3.5 cents of each dollar invested. DG had great opportunites from 1999 to 2008 by doubling the stores from 3687 stores to 6930 with intentions of opening 20 more. Everyday increase in stores will add $124 every day....
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