Chain plans to open about 900 new stores in fiscal 2016

GOODLETTSVILLE, Tenn. — Dollar General Corp. will present its strategic plans to support its growth model at its annual conference with investors on March 25.

Todd Vasos, Dollar General’s chief executive officer, will provide an update on key initiatives to support the company’s long-term strategic plans aimed at delivering total annual shareholder returns (earnings per share growth plus dividend yield) of 11% to 17%, the company said. The financial community will also hear presentations from other members of Dollar General’s executive management team. Main areas of discussion will be the company’s initiatives to drive profitable sales growth, capture growth opportunities, enhance its position as a low-cost operator and invest in people as a competitive advantage, according to Dollar General.

“Dollar General has a powerful strategic plan that enables us to drive both the top line and bottom line to deliver strong financial returns as outlined in our growth model over the long term,” commented Vasos. “With strong cash flow and an efficient capital structure, we believe that we have a compelling opportunity to invest for growth while also returning cash to shareholders through consistent share repurchases and anticipated quarterly dividends.”

In addition to establishing a target for annual shareholder returns, the growth model sets annual targets for key drivers such as net sales (7% to 10%), square footage (6% to 8%), same-store sales (2% to 4%), capital expenditures (2% to 3% of sales) and operating profit (7% to 11%).

Dollar General said it intends to open about 900 new stores and relocate or remodel 875 outlets in fiscal 2016. For fiscal 2017, the outlook is for the addition of 1,000 stores and the remodel or relocation of 900 stores.