Dollar General, rival to Matthews-based Family Dollar, said Tuesday that it plans to open 625 new stores and add 6,000 jobs this year.
The Tennessee-based Dollar General chain totals 9,800 stores. Both discount chains have been in expansion overdrive since the recession, when more shoppers started flocking to them in order to save money.
Family Dollar and Dollar General are both expanding at a torrid rate, fueled by plenty of cash flowing into their coffers. In fiscal 2011, Family Dollar's sales rose 8.7 percent, to $8.5 billion, with $388 million in profit. In December, Dollar General reported sales were up 11 percent, to $10.6 billion, with $474 million in profit.
Even with both companies repurchasing hundreds of millions of dollars worth of their stock, that's a lot of cash to put to work.
Family Dollar is set to report its first quarter earnings on Thursday afternoon. CEO Howard Levine will likely reveal more details about the company's expansion plans this year during Friday morning's phone call with analysts. The company has previously said it plans to open 450-500 new stores in fiscal 2012.
The company opened its 7,000th store this year, pushed into the California market for the first time and has announced plans to open hundreds of stores each year. And Family Dollar is also in the middle of a plan to renovate all of the existing stores in its chain to improve sales.
In 2012, Dollar General will also be opening stores in California for the first time, as well as a new distribution center in the state. Both Dollar General and Family Dollar are muscling in to 99 Cents Only store territory in the Golden State.
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ReplyDeleteA pretty aggressive expansion. Appears that FD wants to invest their earnings into the real estate - while it's still cheap.
ReplyDeleteGlad to see they're going to spending in 2012. More good news for Charlotte and the country!
FD and DG are not opening stores in big cities, they are going to small rural towns and opening shop
ReplyDeleteGoing in both FD and DG are like going in a run down flea market. Both could give away the junk they sell and I'd never go in one again. Both make WalMart look upscale.
ReplyDeleteFD/DG is the new Walmart
ReplyDeleteWalmart is the new Sears
funny years back I heard people say they would never go in walmart...
Looks like DG is planning on Obama being re-elected
ReplyDeletePer Bill
ReplyDeleteIt doesn't affect Charlotte.
You'd think FD wouldn't have laid off hundreds of workers as profitability increased... nope, they did. Just as greedy as all of the other corporations.
Oh great: This just means double the amount of Chinese crap sold to the lower class while DG and the Levines continue to make millions. And this is a good thing, why?
ReplyDeleteAnon @4:27pm - you don't think the revenue coming into FD won't be spent in CLT and with related vendors? You don't think the remaining workers will still spend money?
ReplyDeleteBut, based on your post, your glass is always half empty?
Anon @ 4:35 - What would you prefer FD sell? If you have a better product, why don't you open a store and compete with them?