Dollar General Corporation operates as a discount retailer in the United States.
The company has various stores located in 48 U.S. states and Mexico as of February 28, 2025, with the greatest concentration of stores in the southern, southwestern, midwestern and eastern United States. The company’s first stores in Mexico opened in 2023. The company offers a broad selection of merchandise, including consumable items, seasonal items, home products and apparel. The company’s merchandise includes na...
Dollar General Corporation operates as a discount retailer in the United States.
The company has various stores located in 48 U.S. states and Mexico as of February 28, 2025, with the greatest concentration of stores in the southern, southwestern, midwestern and eastern United States. The company’s first stores in Mexico opened in 2023. The company offers a broad selection of merchandise, including consumable items, seasonal items, home products and apparel. The company’s merchandise includes national brands from leading manufacturers, as well as its own private brand selections with prices at substantial discounts to national brands. The company offers its customers these national brand and private brand products at everyday low prices (typically $10 or less) in the company’s convenient small-box locations.
The company's stores are conveniently located in a variety of rural, suburban and urban communities. The company seeks to locate its stores in close proximity to the company's customers, which helps drive customer loyalty and trip frequency and makes the company an attractive alternative to large discount and other large-box retail and grocery stores.
The company's product offering includes most necessities, such as basic packaged and refrigerated or frozen food products, dairy products, cleaning supplies, paper products, health and beauty care items, greeting cards and other stationery items, basic apparel, housewares, hardware and automotive supplies, among others. The company’s convenient hours and broad merchandise offering allows its customers to fulfill their requirements for basic goods and minimize their need to shop elsewhere.
Merchandise
The company's product assortment provides the opportunity for its customers to address most of their basic shopping needs with one trip. The company offers a wide selection of nationally advertised brands from leading manufacturers. Additionally, the company's private brand products offer even greater value with options to purchase both products that are of comparable quality to national brands, as well as opening price point items, each often at substantial discounts to the national brands.
Consumables is the company’s largest merchandise category and includes paper and cleaning products (such as paper towels, bath tissue, paper dinnerware, trash and storage bags, disinfectants, and laundry); packaged food (such as cereals, pasta, canned soups, canned meats, fruits and vegetables, condiments, spices, sugar and flour); perishables (such as milk, eggs, bread, refrigerated and frozen food, beer, wine and produce); snacks (such as candy, cookies, crackers, salty snacks and carbonated beverages); health and beauty (such as over-the-counter medicines and personal care products including soap, body wash, shampoo, cosmetics, dental hygiene and foot care products); pet (such as pet supplies and pet food); and tobacco products.
Seasonal products include holiday items, toys, batteries, small electronics, greeting cards, stationery, prepaid phones and accessories, gardening supplies, hardware, automotive and home office supplies.
Home products include kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies and kitchen, bed and bath soft goods.
Apparel includes basic items for infants, toddlers, girls, boys, women and men, as well as socks, underwear, disposable diapers, shoes and accessories.
The company's seasonal and home products categories typically account for the highest gross profit margins, and the consumables category typically accounts for the lowest gross profit margin.
The Dollar General Store
The company's stores average approximately 7,500 square feet of selling space, and approximately 80% of the company's stores are located in towns of 20,000 or fewer people. The company's primary new store formats average selling space of approximately 8,500 square feet.
Customers
The company's customers seek value and convenience. Depending on their financial situation and geographic proximity, customers' reliance on Dollar General varies from fill-in shopping, to making periodic trips to stock up on household items, to making weekly or more frequent trips to meet most essential needs. The company generally locates its stores and plans its merchandise selections to best serve the needs of the company's core customers, the low- and fixed-income households often underserved by other retailers (including grocers), and the company is focused on helping them make the most of their spending dollars. At the same time, however, Dollar General shoppers from a wide range of income brackets and life stages appreciate the company's quality merchandise, as well as the company's attractive value and convenience proposition.
Distribution and Transportation
The company's stores are supported by distribution centers for frozen, refrigerated and non-refrigerated merchandise located strategically throughout the company's geographic footprint. In addition to the company's traditional distribution centers, the company operates multiple temperature-controlled distribution facilities in the support of the company's self-distribution of frozen and refrigerated goods, such as dairy, deli and frozen products. The company leases additional temporary warehouse space as necessary to support the company's distribution needs. The company regularly analyzes and rebalances the distribution network with an intention of ensuring that it remains efficient and provides the service levels the company's stores require.
Most of the company's merchandise flows through its distribution centers and is delivered to the company's stores by its private fleet and by third-party trucking firms, utilizing the company's trailers. In addition, vendors or third-party distributors deliver or ship certain food items and other merchandise directly to the company's stores.
Seasonality
The nature of the company's business is somewhat seasonal. Generally, the company's operating profit has been greater in the fourth quarter (year ended February 2025), which includes the Christmas selling season, as compared with operating profit in each of the first three quarters of the company's fiscal year.
Competition
The company’s direct competitors include Family Dollar, Dollar Tree, and various local, independent operators, as well as Walmart, Target, Kroger, Aldi, Costco, Sams Club, BJ’s Wholesale Club, Walgreens, CVS, and Rite Aid, among others.
ur direct competitors include Family Dollar, Dollar Tree, and various local, independent operators, as well as Walmart, Target, Kroger, Aldi, Costco, Sams Club, BJ’s Wholesale Club, Walgreens, CVS, and Rite Aid, among others
Intellectual Property
The company owns marks that are registered with the United States Patent and Trademark Office and are protected under applicable intellectual property laws, including, without limitation, Dollar General, DG, Clover Valley, trueliving, pOpshelf, and Mi Super Dollar General along with variations and formatives of these trademarks. The company's trademark registrations have various expiration dates. The company also holds an exclusive license to the Rexall brand through at least March 5, 2032.
History
The company was founded in 1939. The company was incorporated in 1998. The company was formerly known as J.L. Turner & Son, Inc. and changed its name to Dollar General Corporation in 1968.