Dollar General

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Dollar General Corporation
Formerly called
J.L. Turner and Son
Public
Traded as NYSEDG
S&P 500 Component
Industry Discount retailer
Founded J.L. Turner and Son
1939; 79 years ago (1939)
Dollar General Corporation
1968; 50 years ago (1968)
Founders James Luther Turner
Cal Turner
Headquarters 100 Mission Ridge, Goodlettsville, Tennessee, United States
Number of locations
14,000 stores[1] (October 2017[2])
Areas served
Contiguous United States except for the Northwest
Key people
Michael M. Calbert (Chairman)
Todd Vasos (CEO)
John W. Garratt (CFO)
Products Clothing, cleaning supplies, home decor, health & beauty aids, pet supplies, toys, seasonal items, and grocery.
Revenue Increase$20.369 billion (2015)[1]
Increase$1.940 billion (2015)[1]
Increase$1.165 billion (2015)[1]
Total assets Increase$11.258 billion (2015)[1]
Divisions Dollar General Market[3]
Subsidiaries Dolgencorp, LLC.
Dollar General Financial
Dollar General Global Sourcing
Dollar General Literacy Foundation
Website www.dollargeneral.com

Dollar General Corporation is an American chain of variety stores headquartered in Goodlettsville, Tennessee. As of August 2017, Dollar General operated over 13,000 stores[4][1] in all U.S. states except: Alaska, Hawaii, Idaho, Montana, Washington, and Wyoming.[5]

History[edit]

J.L. Turner and Son: 1939–1964[edit]

J.L. Turner and Son in 1939.

Dollar General has its origins in Scottsville, Kentucky from James Luther "J.L." Turner and Cal Turner. James Turner's father died in an accident in 1902 when James was only 11. James had to quit school, and never completing his education, so he could work the family farm and help provide for his mother and siblings. After two unsuccessful attempts at retailing, James became a traveling dry goods salesman for a Nashville wholesale grocer. James left the sales job after 10 years and settled his family in Scottsville, Kentucky. During the Great Depression, he began buying and liquidating bankrupt general stores. James' only child Cal Turner accompanied his father to these closeouts at a young age, gaining valuable business knowledge and skills.[6]

In October 1939, James and Cal opened J.L. Turner and Son with an initial investment of $5,000 each. The switch to retailing resulted in annual sales above $2 million by the early 1950s. By the mid-1950s Turner had 35 department stores in Kentucky and Tennessee. In 1955 Cal Turner developed his idea of a retail store selling goods for a dollar, based on the Dollar Days promotions held at other department stores, by converting Turner's Department Store in Springfield, Kentucky into the first Dollar General Store.[7] In 1964 J.L. Turner died leaving his son Cal Turner to succeed him.

1968–2002[edit]

The first Dollar General store was established in Springfield, Kentucky in 1955.

The company Cal Turner co-founded went public as Dollar General Corporation in 1968, posting annual sales of more than $40 million and net income in excess of $1.5 million. In 1977, Cal Turner, Jr., who joined the company in 1965 as the third generation Turner, succeeded his father as president of Dollar General. Cal Jr.[8] led the company until his retirement in 2002. Under his leadership, the company grew to more than 6,000 stores and $6 billion in sales. In 1997 a distribution center was established in South Boston, Virginia.[9]

In 2000 Dollar General opened a new corporate headquarters in Goodlettsville, Tennessee. By the end of 2000 sales at Dollar General exceeded $4 billion.[10] The distribution center in Homerville, Georgia was closed in April 2000 and operations were moved to a new distribution center in Alachua, Florida.[11]

Cal Jr. retired in 2002 and was succeeded by David Perdue in 2003.[12]

2003–Present[edit]

Dollar General entered the grocery market with the establishment of Dollar General Market in 2003.[13] In 2004 Dollar General expanded to low-cost Asian markets by opening a sourcing office in Hong Kong.[14]

On June 21, 2007 CEO David Perdue announced his resignation leaving David Bere as interim CEO.[15] One month later all shares of Dollar General stock were acquired by private equity investors for $22 per share. An investment group consisting of affiliates of Kohlberg Kravis Roberts (KKR), GS Capital Partners (an affiliate of Goldman Sachs), Citigroup Private Equity and other co-investors completed an acquisition of Dollar General Corporation for a total enterprise value of $7.3 billion.

As a part of the transition to a privately held company, Dollar General assessed each location at the end of its lease against a model known as "EZ Stores". This assessment included evaluating whether the location had a loading dock, garbage dumpsters, adequate parking, and acceptable profitability. Stores that did not pass this evaluation were relocated or closed. Over 400 stores were closed as part of this initiative.[16]

Dollar General filed on August 20, 2009 for an initial public offering of up to $750 Million turning the company once again into a publicly traded corporation.[17][18] In 2013 Dollar General started selling cigarettes in response to its competitor Family Dollar selling cigarettes in 2012.[19][20] Dollar General's 12th distribution center opened on May 31, 2014 in Bethel, Pennsylvania to serve the northeast and midwest stores.[21] On August 18, 2014, Dollar General lodged a competing bid of $9.7 billion against Dollar Tree for Family Dollar. The bid was rejected on August 20, 2014 by the Family Dollar board, which said it would proceed with the deal with Dollar Tree.[22]

Construction of a new Dollar General store in Lowndes County, Georgia in 2015.

On June 3, 2015, Chief Operating Officer Todd Vasos replaced Rick Dreiling as chief executive. Dreiling remained as senior advisor and chairman until his retirement in January 2016.[23] Dollar General's 13th distribution center opened in San Antonio, Texas on June 6, 2016 with a local investment of $100 million and the creation of over 500 jobs.[24] In September 2015, the Janesville City Council, in Wisconsin, approved an agreement to bring a Dollar General distribution center to the town. The center created more than 500 jobs in the area and became the 14th Dollar General distribution center.[25]

On September 15, 2016, Dollar General announced plans to hire 10,000 new employees and open 900 new stores in fiscal 2016 and 1,000 in fiscal 2017. Dollar General had operated 13,000 stores as of August 2016.[26] Dollar Express and all of its 323 locations were acquired by Dollar General in April 2017.[27] In Jackson, Georgia, Dollar General will open a 15th distribution center in fall 2017 to serve stores in Georgia and the surrounding state.[28]

In 2017, Dollar General began construction for its 16th distribution center in Amsterdam, New York. The distribution center is to cost $91 million and is expected to create 400 jobs in Montgomery County, New York.[29] Dollar General plans to open 900 new stores in 2018.[30] Also in 2017, Dollar General acquired Dollar Express, a spinoff from the Family Dollar-Dollar Tree deal, and converted the store.[31]

A second distribution center will be established in Texas with a planned opening in 2019. The distribution center will be located in Longview, Texas and will bring 400 jobs to the area.[32]

Major sponsorships[edit]

Auto racing[edit]

Brian Vickers' 2013 Nationwide Series car at Road America

For several years, Dollar General has had a connection with motorsports, particularly in NASCAR. The company is currently a primary sponsor for Joe Gibbs Racing. Dollar General sponsored Brian Vickers in the Nationwide Series in 2013. Dollar General became a primary sponsor for Matt Kenseth in the Sprint Cup Series starting in 2013.[33] Dollar General and Turner (formerly Braun Racing) have been partnered together since 2008, with the team previously sponsoring cars for Frank Cicci Racing and Kevin Harvick Incorporated. In 2010, Dollar General sponsored some races in the Camping World Truck Series for Kyle Busch Motorsports with Kyle Busch in the No. 18 Toyota Tundra and sponsored Kyle Busch's Motorsports No. 51 Toyota Tundra for four races in 2014 with Busch driving three and Erik Jones driving one.[34] Dollar General was the title sponsor for Nationwide Series races held in Charlotte every fall, Chicagoland every summer, and Phoenix in the spring. On May 23, 2016, Dollar General announced they would withdraw its sponsorship from NASCAR at the end of the 2016 season.[35]

Dollar General is also active in the Verizon IndyCar Series since 2008, serving as the primary sponsor for owner/driver Sarah Fisher's Sarah Fisher Racing team.[36] In 2010, both Fisher and Graham Rahal drove part-time for the team finishing 9th at the Honda Grand Prix of St. Petersburg. Fisher also led the field at the Peak Antifreeze & Motor Oil Indy 300 at Chicagoland Speedway. In 2011, Dollar General continued to sponsor Sarah Fisher Racing, the team was still part-time but Ed Carpenter drove for nines races starting at the 2011 Indianapolis 500. Since 2012 Dollar General is no longer a sponsor for Sarah Fisher's Sarah Fisher Racing.[37]

Sports[edit]

Dollar General became the sponsor of the Dollar General Bowl, formerly the GoDaddy Bowl, in 2016.[38]

Store brands[edit]

Dollar General DG products

Dollar General created its abbreviation, the letters "DG", as a store brand for "inexpensive" household products sold through the Dollar General stores. DG is also the company's NYSE ticker symbol.

In 2010, Dollar General was able to outbid the famous Italian Fashion House Dolce and Gabbana that sells very expensive fashion products under another "DG" label in the acquisition of the "DG" symbol as the Internet address. The domain "DG.com" was purchased in a private sale from EMC Corporation, the successor to the defunct Data General computer manufacturer in June 2010, making Dollar General the 107th large company in the world to own their initials as a 2-letter Internet address. The DG symbol is used by the company for a variety of in-house products called DG Home,[39] DG Baby,[40] DG Health and DG Body.

In 2017, Dollar General secured an exclusive contract to sell Jolt Cola in its stores.[41]

Dollar General uses the Clover Valley store brand for grocery products and the Smart & Simple brand for low-end discount products.

Rexall[edit]

The brand name Rexall was first established in 1903 by Louis K. Liggett that gradually became a powerhouse as a pharmaceutical drug store chain.[42] In March 2010 Dollar General became the exclusive retailer for Rexall products. Rexall vitamins and supplements began appearing at Dollar General stores in March and by Fall 2010 a full line of Rexall products was available at Dollar General.[43]

Corporate affairs[edit]

Board of Directors[edit]

Dollar General Board of Directors as of July 2017 are: Michael M. Calbert (Chairman of the Board), Todd Vasos (CEO), Warren Bryant, Sandra Cohen, Patricia Fili-Krushel, Paula Price, William Rhodes III, and David Rickard.[44]

Operations[edit]

Dollar General has over 12,500 stores in 43 states.[45] Dollar General also has 14 distribution centers in 14 states.[46]

Truck delivering Dollar General goods to a store in Corydon, Iowa.
Dollar General Market in Clarksville, Tennessee.
Dollar General store in Arlington, Georgia.
Dollar General distribution center in Alachua, Florida.
(As of 2017) Stores Distribution centers
Alabama 654 1
Arizona 89 0
Arkansas 362 0
California 164 1
Colorado 31 0
Connecticut 28 0
Delaware 41 0
Florida 733 1
Georgia 708 1
Illinois 451 0
Indiana 428 1
Iowa 188 0
Kansas 210 0
Kentucky 456 1
Louisiana 493 0
Maine 14 0
Maryland 113 0
Massachusetts 22 0
Michigan 353 0
Minnesota 66 0
Mississippi 411 1
Missouri 436 1
Nebraska 97 0
Nevada 24 0
New Hampshire 16 0
New Jersey 87 0
New Mexico 80 0
New York 336 1 (Fall 2018)
North Carolina 667 0
Ohio 658 1
Oklahoma 389 1
Oregon 5 0
Pennsylvania 555 1
Rhode Island 3 0
South Carolina 457 1
South Dakota 24 0
Tennessee 644 0
Texas 1296 1
Utah 7 0
Vermont 30 0
Virginia 334 1
West Virginia 198 0
Wisconsin 126 1
Dollar General semi-trailers

Subsidiaries[edit]

Dollar General brand duct tape showing Dolgencorp on the side.

Dolgencorp[edit]

Dolgencorp is a wholly owned subsidiary of Dollar General Corporation. Dollar General brand products are manufactured under the Dolgencorp subsidiary.[47]

Dollar General Global Sourcing[edit]

In 2004 a Dollar General office was opened in Hong Kong to oversee the global sourcing operations through exporting and importing products of Dollar General related goods.[48]

Dollar General Literacy Foundation[edit]

Since 1993, Dollar General has provided funding of literacy and education programs through its subsidiary Dollar General Literacy Foundation. It has awarded over $135 million in grants to nonprofit organizations as of July 2017.[49]

Controversies[edit]

Short documentary by the Economic Policy Institute featuring a Dollar Store manager who was required to work 70 hour weeks.[50]

Financial irregularities[edit]

On April 30, 2001, Dollar General Corp was liable for making false statements or failing to disclose adverse facts about the company's financial results,[51] and paid $162 million for settlement.

On April 30, 2001, Dollar General announced to restate its earnings for the past three fiscal years, due to accounting irregularities including allegations of fraudulent behavior.[52]

On March 3, 2005, Dollar General announced to restate its results for 2000 through 2003, due to a clarification of lease-accounting matters issued by the SEC.[53]

OSHA 2014 and 2016 fines[edit]

In November 2014, Dollar General was fined $51,700 by the Occupational Safety and Health Administration (OSHA) following an inspection of a Brooklyn, MS branch of the store. The statement from OSHA notes that Dollar General has had repeated health and safety violations: "Since 2009, OSHA has conducted 72 inspections of Dollar General nationwide. Of those inspections, 39 have resulted in citations."[54] In April 2016, OSHA reported that further citations had been given to the store for exposing employees to the risk of electrical hazards due to missing face plates on electrical outlets. The store was fined $107,620.[55] In December 2016, OSHA has noted that some Dollar General stores continued to block fire exits with merchandise disregarding safety violations resulting in several fines.[56]

Mississippi Band of Choctaw Indians[edit]

See also[edit]

Further reading[edit]

References[edit]

  1. ^ a b c d e f "Dollar General Corporation Reports First Quarter 2017 Financial Results". Goodlettsville, Tennessee: Dollar General Corporation. 2016-03-10. Retrieved 2017-06-26. 
  2. ^ Mya Frazier (11 October 2017). "Dollar General Hits a Gold Mine in Rural America". BusinessWeek. Retrieved 17 October 2017. 
  3. ^ "Dollar General Market". www2.dollargeneral.com. 
  4. ^ "Dollar General Reaches Milestone of 13,000th Store". CSP Daily News. August 19, 2016. Retrieved 26 June 2017. 
  5. ^ "Store Locator". Dollar General. Retrieved 13 January 2015. 
  6. ^ "Cal Turner, 85; Founded Dollar General". New York Times. November 20, 2000. Retrieved 4 June 2017. 
  7. ^ Scavotto, Andrew. "Dollar General Founder Cal Turner Sr. Loved Small Town Life". Nashville Post. Retrieved 2 June 2017. 
  8. ^ "Dollar General Newsroom | Former Dollar General Chairman and CEO Cal Turner Receives Lifetime Achievement Award from Retail Merchandiser Magazine". Newscenter.dollargeneral.com. Retrieved 2014-01-19. 
  9. ^ "Dollar General South Boston Distribution Center Celebrates 20 Years". April 13, 2017. Retrieved 26 June 2017. 
  10. ^ "Dollar General Reports Financial Results for Fiscal 2000 And Restated Results for 1999 and 1998". dollargeneral. Retrieved 4 June 2017. 
  11. ^ "Dollar General Closes Georgia Distribution Center". Nashville Post. April 19, 2000. Retrieved 4 June 2017. 
  12. ^ "Dollar General Corporation Names David A. Perdue, Jr. CEO". dollargeneral. 
  13. ^ Springer, Jon (August 23, 2010). "Dollar General Market: Still in the Lab". Supermarket News. Retrieved 4 June 2017. 
  14. ^ Malloy, Daniel (October 30, 2014). "On David Perdue, Dollar General and recalls of Chinese-made toys". AJC. Retrieved 18 June 2017. 
  15. ^ "Perdue steps down from Dollar General". Nashville Business Journal. June 21, 2007. Retrieved 4 June 2017. 
  16. ^ Susan Elzey (2007-07-19). "Location part of store closing". Retrieved August 13, 2007. 
  17. ^ "Dollar General Files for $750 MM IPO". 
  18. ^ Merced, Michael J. de la. "Dollar General Files for an I.P.O". 
  19. ^ Peterson, Kim (December 12, 2013). "Dollar General is opening full-sized grocery stores". CBS News. Retrieved 4 June 2017. 
  20. ^ "Dollar-Store Chains Find Smokers Are Some of Their Best Shoppers". Bloomberg News. November 5, 2014. Retrieved 4 June 2017. 
  21. ^ "Dollar General Celebrates Grand Opening of its 12th Distribution Center in Bethel, Pennsylvania". May 31, 2014. Retrieved 26 June 2017. 
  22. ^ "Family Dollar rejects $9.7 bn acquisition bid by Dollar General". Charlotte News.Net. 21 August 2014. Retrieved 22 August 2014. 
  23. ^ RAMAKRISHNAN, SRUTHI. "Dollar General says COO Vasos to replace Dreiling as CEO". Reuters. Reuters.com. Retrieved 1 June 2015. 
  24. ^ "Dollar General Celebrates Grand Opening of Its 13th Distribution Center in San Antonio, Texas". June 6, 2016. Retrieved 26 June 2017. 
  25. ^ Noggle, Amber. "Development agreement approved for Dollar General distribution center". WKOW.com. WKOW Madison, WI. Retrieved 15 September 2015. 
  26. ^ "Dollar General to add 10,000 workers in hiring spree". Retrieved 2016-09-18. 
  27. ^ Garcia, Tonya (April 6, 2017). "Dollar General acquires all 323 Dollar Express stores". Market Watch. Retrieved 8 June 2017. 
  28. ^ "Dollar General Building New Distribution Center in Central Georgia". May 9, 2016. Retrieved 26 June 2017. 
  29. ^ Subik, Jason (July 1, 2017). "Dollar General breaks ground for new warehouse distribution center". The Leader-Herald. Retrieved 25 November 2017. 
  30. ^ Meyersohn, Nathaniel (December 7, 2017). "Dollar General is opening 900 new stores next year". CNN Money. Retrieved 16 December 2017. 
  31. ^ "Dollar Express Chain Sells Out To Competitor Dollar General After 1.5 Years". Consumerist. 2017-04-04. Retrieved 2017-12-23. 
  32. ^ de Bruijn, Eline (December 27, 2017d). "New Dollar General Distribution Center Will Bring 400 Jobs". Retrieved 12 January 2018. 
  33. ^ "Vickers to run for Nationwide title with JGR". Yahoo! Sports. 2012-11-07. Retrieved 2012-11-07. 
  34. ^ "Dollar General to Sponsor Four Races on No. 51 Tundra in the NASCAR Camping World Truck Series". Kyle Busch Motosports. March 18, 2014. Archived from the original on March 24, 2014. Retrieved March 23, 2014. 
  35. ^ Jensen, Tom (May 23, 2016). "Dollar General leaving Joe Gibbs Racing, NASCAR at end of season". Foxsports.com. Retrieved May 23, 2016. 
  36. ^ "Dollar General Expands Sarah Fisher IndyCar Sponsorship To Six Races; Texas And Miami Presidents Weigh In". dollargeneral. Retrieved 4 June 2017. 
  37. ^ Petry, Tori (May 23, 2013). "Sarah Fisher isn't slowing down with racing". ESPN. Retrieved 4 June 2017. 
  38. ^ Moriarty, Morgan (December 23, 2016). "Yep, the Dollar General Bowl is the new name for the GoDaddy Bowl". SB Nation. Retrieved 21 June 2017. 
  39. ^ "- DG home, a Dollar General Brand for cleaning products". 
  40. ^ "- DB Baby, a Dollar General Brand for Baby Products". 
  41. ^ "JOLT Cola is Coming Back, With O.G. Cans". Geek.com. 30 Aug 2017. Retrieved 2017-08-30. 
  42. ^ Mrozinzski, Josh. "Once a powerhouse in pharmaceuticals, Rexall is now for many a memory". The Times-Tribune. Retrieved 14 June 2017. 
  43. ^ "My Private Brand – Rexall Private Brands Come to Dollar General". My Private Brand. March 25, 2010. Retrieved 2014-01-19. 
  44. ^ "Board of Directors". investor.shareholder.com. Retrieved 3 July 2017. 
  45. ^ "Store Locations & Map". dollargeneral.com. 
  46. ^ "Dollar General's Supply Chain and Distribution Model". marketrealist.com. Retrieved 25 May 2017. 
  47. ^ "Company Overview of Dolgencorp, LLC". bloomberg.com. Retrieved 16 October 2017. 
  48. ^ "Company Overview of Dollar General Global Sourcing Limited". Retrieved 17 October 2017. 
  49. ^ "Dollar General Literacy Foundation Awards More Than $7.5 Million to Nearly 870 Schools, Nonprofits and Literacy Organizations". dollargeneral.com. Retrieved 3 July 2017. 
  50. ^ Jackman, Caresse (May 29, 2015). "Swartz Creek woman takes push for overtime reform to Washington D.C". ABC 12 News. Retrieved 7 December 2017. 
  51. ^ "U.S. District Court CIVIL DOCKET FOR CASE #: 3:01-cv-0038" (PDF). 
  52. ^ "Dollar General Reports Financial Results for Fiscal 2000 And Restated Results for 1999 and 1998". 
  53. ^ "Dollar General Corp to restate 2000-2003 results". 
  54. ^ "Dollar General in Brooklyn, Mississippi, cited for repeat safety hazards; more than $51K in fines proposed". Occupational Safety and Health Administration. 
  55. ^ "OSHA inspection finds Mississippi Dollar General store continues to expose workers to safety hazards despite recent citations, penalties". OSHA. 14 April 2016. Retrieved 18 April 2016. 
  56. ^ Gollan, Jennifer (December 20, 2016). "Why Dollar General has a fire problem". Retrieved 1 December 2017. 

External links[edit]