Private Label Buyer

Dollar General Reports 15% Jump in PL Sales, Rexall Helps

August 31, 2011

Goodlettsville, Tenn.-based Dollar General reported a 15 percent year-to-date jump in private label sales, attributable in part to its Rexall product offerings and to consumers trading down to lower priced offerings.

 

“Private brands continue to be a significant opportunity for us. Sales of private brands have increased over 15 percent year-to-date, outpacing our overall sales growth. We are very pleased with the performance of our expanded health and beauty offering which includes strong growth in the Rexall brand,” said Rick Dreiling, Dollar General chairman and CEO, during an earnings conference call Tuesday.

 

“We now have over 1,400 private brand SKUs, including nearly 300 Rexall SKUs, and we believe we still have significant opportunity to grow,” Dreiling said. Dollar General last March signed an agreement with drug retailer Rexall to become an exclusive supplier of Rexall health care products, creating a hybrid national brand/private label.

 

“Overall, sales in our consumable categories were very strong and a direct result of our ongoing category management efforts, which include a significant focus on increasing our offerings of private brands. Our private brands continue perform well as they help us answer our customer’s demands for low prices on quality products while also boosting our gross margin rate,” Dreiling said.

 

Dollar General reported quarterly net income of $146 million for its second quarter, a 3 percent increase from the $141 million reported in the same period last year. Net sales for the period hit $3.6 billion compared with $3.2 billion in the same period last year.