Dollar General Sales Get a Boost from Store Brands

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December 16, 2009

Dollar General posted another strong quarter, which CEO Rick Dreiling attributes, in part, to the growing number of store brands offered in the stores.

The discounter posted sales increases in nearly every category with overall sales up 12.7 percent and same store sales up 9.2 percent, according to a report on the Nashville Public Radio web site. Shopper overall are spending 9 percent more at Dollar General, the report said.

“In consumables, we now carry nearly 1,300 private brand items, accounting for over 21 percent of consumable sales,” Dreiling said.

While Wal-Mart and Costco both posted sales gains in their most recent quarters, they were not as high as Dollar General’s gains, the report said.

Falling real-estate prices also have worked in the Goodlettsville, Tenn.-based chain favor especially since it has opened and relocated hundreds of stores, according to Dreiling.

“There’s no doubt on renewals and relocations, we’re seeing rates come down,” he said. “However, we’ve also stepped back and taken a position where we’re using the decline in rates to move into better locations.”

Last month the company raised $446 million in an IPO and is now trading on the New York Stock Exchange.

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