Dollar General Corporation (DG) operates one of the leading chains of extreme value retailers in the United States. Sales in 2006 amounted to $ 9.2 billion makes the DG 6 largest mass retailer in the country. With revenues growing at 9% annually over the five-year period up to 2005, DG had to surpass the distinction of being one of only three retailers Wal-Mart in sales and profit growth in this period. Life in a Dollar General Store paints a vivid picture of the historical roots and focu … Read more »

Dollar General Corporation (DG) operates one of the leading chains of extreme value retailers in the United States. Sales in 2006 amounted to $ 9.2 billion makes the DG 6 largest mass retailer in the country. With revenues growing at 9% annually over the five-year period up to 2005, DG had to surpass the distinction of being one of only three retailers Wal-Mart in sales and profit growth in this period. Life in a Dollar General Store paints a vivid picture of the historical roots and direction of the company. Has been opportunistic purchase, the stores an eclectic mix of goods. Analysts often to this category models called the “treasure hunt”. Provides the ability to check a company’s business model, especially DG was so successful in competition with Wal-Mart, where so many other retailers do not have. While it began as a family business in the five-and-dime tradition, it has developed into a close-out retail model where its unique low-overhead operations were beneficial. As there are added Supplies categories shifted its mix, but managed to retain its low overhead model. Interestingly, the mix shift was probably more down an emergency strategy of store level operations than through top-down oriented strategy. Frames the growth opportunities, the DG-chief, as he with how to maintain growth gripper.
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from
Willy Shih,
Stephen P. Kaufman,
Rebecca McKillican
Source: Harvard Business School
32 pages.
Release Date: 31, May 2007. Prod #: 607140-PDF-ENG
Dollar General (A) HBR case solution