GOODLETTSVILLE, Tenn. – Dollar General Corp.’s same-store sales climbed 12.2% in the fiscal third quarter. Net sales increased 17.3% to $8.2 billion.

Consumer behaviors related to the coronavirus pandemic had a significant effect on sales in the 13 weeks to October 30, the company said December 3. An increase in average transaction amount was partially offset by a decline in customer traffic. Operating profit increased 57.3% to $773 million.

Todd Vasos, Dollar General’s chief executive officer, announced that the company was increasing the amount budgeted for “appreciation bonuses” to front-line employees.

“I want to thank our associates for their tireless work over the past several months in helping our customers and communities impacted by the COVID-19 pandemic,” Vasos said. “To further demonstrate our appreciation and support, we plan to award a total of up to $75 million in appreciation bonuses to eligible front-line employees in Q4, which includes our recent announcement to double our initial plans for second-half bonuses by approximately $50 million, bringing the company’s full-year investment in employee appreciation bonuses to approximately $173 million. Despite continued significant uncertainty in the operating environment, our team members have been unwavering in their commitment to fulfilling our mission of Serving Others.”

Vasos said Dollar General continued to make “great progress” advancing its key strategic initiatives in the third quarter, including the rollout of DG Pickup across nearly the entire store base, and the launch of our newest store format, popshelf.

“In total, we executed 765 real estate projects, further laying and building the foundation for future growth,” Vasos said. “Overall, our ongoing operating priorities, coupled with our key strategic initiatives, position us well to continue delivering value and convenience for our customers, along with long-term sustainable growth and value for our shareholders.”

Dollar General unveiled popshelf in October as a way to “engage customers with a fun, affordable and stress-free shopping experience” that can help the retailer establish a foothold in suburban communities. The first two popshelf stores, near Nashville, Tenn., are about 9,000 square feet in size and offer a continually refreshed assortment that includes seasonal specials and limited-time items. The majority of the merchandise will be priced at $5 or less. Dollar General aims to have 30 popshelf stores up and running in suburban communities by the end of the fiscal year, primarily serving female shoppers living in households with annual incomes ranging from $50,000 to $125,000.

In the next fiscal year, which begins in late January, Dollar General expects to execute 2,900 real estate projects, including 1,050 new store openings, 1,750 remodels, and 100 store relocations. “We are excited to once again accelerate our real estate growth plans in fiscal year 2021,” said Jeff Owen, Dollar General’s chief operating officer. “Our portfolio of high-return real estate projects continues to be a top priority for capital allocation as we look to continue delivering long-term shareholder value. With a robust pipeline in place and plans to execute an average of nearly eight real estate projects per day in fiscal year 2021, we are enthusiastic about the opportunity to further expand our footprint and serve even more customers across the country.”