Dollar General Q2 profit edges up, to expand into three states, and launch e-commerce
Goodlettsville, Tenn. — Dollar General Corp. reported Tuesday that its second-quarter net income rose 3.5% to $146 million from $141.2 million in the year-ago period. Sales increased 11% to $3.58 billion; same-store sales rose 5.9%. Its results beat expectations.
The company also raised its full-year outlook.
On its quarterly conference call, CEO Rick Dreiling said the chain is on track to expand into Nevada, Connecticut, and New Hampshire in the second half of the year. Dollar General opened 301 new stores in the second quarter and expects to grow square footage by about 7% for the year
Dreiling also said the chain is ramping up efforts on its “market” format, which offers fresh produce, meat, and other refrigerated and frozen foods alongside the typical Dollar General offerings. The market stores are delivering the highest same-store sales increases in the company this year, he noted.
The discounter also said Tuesday that it will launch dollargeneral.com on Sept. 8. The site will sell a wide assortment of products — from cleaning supplies and toys to snacks and stationery — that it currently sells in its physical stores, as well as exclusive online merchandise.
Dollar General currently operates more than 9,640 stores, or more than any other chain in the United States.
U.S. consumer confidence plunges in August
Washington, D.C. — A report released Tuesday by the Conference Board said that confidence among U.S. consumers sunk to a two-year low in August, as Americans faced continued unemployment woes and worsening business and economic conditions.
The Conference Board’s index plunged to 44.5, the weakest since April 2009 and the biggest point drop since October 2008. Economists predicted the August gauge would fall to 52, according to the median forecast in a Bloomberg News survey.
Books-A-Million cleared to take over 14 Borders leases
New York City — A bankruptcy judge gave Books-A-Million the nod Monday to take over the leases of 14 Borders Group stores for just under $1 million.
The stores are located mostly on the East Coast, and Books-A-Million is expected to take over the leases effective Sept. 20.