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Dollar General to open more than 1,000 stores

The company expects sales per store to increase by 4-6% in 2023.
American discount variety store chain Dollar General reported operating results for the fourth quarter of 2022. The retailer's sales rose 18% to $10.2 billion, with operating income up 17.1% to $933 million and net income up 10.3% to $659 million.

Dollar General - unsplash

Dollar General's 2022 net sales increased 10.6% to $37.8 billion, thanks to new openings and increased revenue at comparable stores. The company reported sales declines in its apparel and home goods segments. Sales in other categories, however, were up.

CEO Jeff Owen said Dollar General is investing $100 million in stores and adding employees. The decision follows inspections by a regulator that suspects the retailer of unsafe working conditions in stores.

Chief Financial Officer John Garratt said the company seeks to increase the additional hours worked. In doing so, the decision to make the extra investment "will contribute to in-store efficiencies." It was previously reported that Garratt would leave the company in June 2023.

Dollar General invested $1.6 billion in capital expenditures in 2022, nearly $600 million of which was used to upgrade and improve existing stores. The retailer opened more than 1,000 new outlets last year, including its first store in Mexico.

The company expects sales per store to increase by 4-6% in 2023. Dollar General plans to open 1,050 new stores, renovate 2,000 locations and relocate 120 stores.

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