GOODLETTSVILLE, Tenn. — Dollar General Corp. is preparing to revitalize and eventually expand its DG Market format, a test concept that debuted in 2003 but which was put on hold in 2007 while the chain’s new management focused on its core stores.

Dollar General Corp. is preparing to revitalize and eventually expand its DG Market format, a test concept that debuted in 2003 but which was put on hold in 2007 while the chain’s new management focused on its core stores.

During the company’s third-quarter conference call last week, president and chief executive officer Rick Dreiling pointed out that three of the 57 DG Markets have been remerchandised and have received new layouts and design schemes, with the result that all three are experiencing strong sales growth.

"In the middle of 2010 we began to implement category management processes in these stores with great success," Dreiling told analysts. "Concurrently we redesigned the layout and upgraded the look of these stores, including an updated color scheme and improved signage. We have remodeled three stores with these new packages, new adjacencies and new category management thoughts, and each of them are achieving double-digit same-store sales increases."

Next year the chain will continue to remodel and remerchandise the remaining DG Markets. "We currently believe this concept can play an expanded role in the future of Dollar General," Dreiling said.

Along with its third-quarter financial results, Dollar General revealed that it will open approximately 625 new stores and remodel or relocate approximately 550 stores in fiscal 2011. The company will expand into three new states, Nevada, New Hampsire and Connecticut.

"These markets represent great opportunities, and we plan to approach them with a cluster strategy to leverage our scale and brand appeal," Dreiling commented.