Dollar General Sales Boosted By Cost Conscious Consumers

Goodlettsville-based Dollar General posted another good quarter showing consumers are still hunting for bargains.

The discount retailer increased sales across nearly every category possible. Overall sales are up 12.7%, same store sales are up 9.2%, and consumers are spending 9% more at the company’s stores.

Dollar General’s Chief Executive Officer Rick Dreiling says the company’s strong sales are, in part, being driven by its growing number of store brands.

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

Both Wal-mart and Costco posted sales gains in their most recent quarters, but not as high as Dollar General’s.

The economy has given the discounter another shot of good news besides more cost-conscious shoppers. With Dollar General opening and relocating hundreds of stores, Dreiling says falling real-estate prices are working in their favor.

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

Just last month, the company started trading on the New York Stock Exchange. Its IPO raised $446 million, which is what company officials expected.