Dollar General PL Sales Rise 12% as Consumer Base Broadens

June 14, 2011
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Dollar General broadened its private label customer base during the first quarter of fiscal 2011 and saw overall private label sales rise 12 percent as a result, the Goodlettsville, Tenn.-based company announced in releasing its quarterly earnings.


“Shoppers with household incomes of more than $70,000 are continuing to grow at faster rate than other income segments,” Richard W. Dreiling, chairman and chief executive officer of Dollar General, said in a prepared statement. “22.4 percent of today's Dollar General customer is earning more than $70,000 per year.”


Higher earning shoppers are coming to Dollar General in response to rising commodity costs and the still fragile state of the economy, he said. Private label sales penetration grew to 23.1 percent in the quarter as a partial result of the retailer's growing popularity amongst higher-earning customers.


The influx of new customers also caused private label sales to grow by 12 percent from the same quarter a year ago. Overall sales for the quarter hit $3.45 billion dollars, up $340 million dollars or 11 percent from first quarter of last year. A 4.3 percent increase in sales from existing Dollar General customers, a 13 percent rise in consumable sales, and the addition of coolers and higher shelves also contributed to strong first quarters sales, executives said.


The retailer anticipates further growth to result from the addition of square footage and shelving in its store health and beauty sections.

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