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GOODLETTSVILLE, Tenn. — Dollar General Corp. plans to add approximately 2,000 stores over the next two years for a total of more than 14,000 locations, reported The Associated Press. This includes 900 new stores and 875 relocated or remodeled stores during the current fiscal year. In 2017, the company expects to open 1,000 new stores and plans to relocate or remodel 900 stores.
Existing Dollar General stores typically occupy approximately 7,000 square feet.
"Dollar General has a powerful strategic plan that enables us to drive both the top line and bottom line to deliver strong financial returns as outlined in our growth model over the long-term," stated Dollar General CEO Todd Vasos in advance of the company's March 24 Investor Conference, where it announced its growth plans. "With strong cash flow and an efficient capital structure, we believe that we have a compelling opportunity to invest for growth while also returning cash to shareholders through consistent share repurchases and anticipated quarterly dividends."
The aggressive expansion plan follows Dollar General's unsuccessful attempt to acquire the Family Dollar chain in 2015. Despite the failure of that deal, Dollar General projects that its annual net sales will increase 7 percent to 10 percent, and that earnings per share will increase anywhere from 10 percent to 15 percent.
In the year that ended Jan. 29, the company posted annual revenue of $20.4 billion, an increase of 7.7 percent over the previous year, according to the report.