DG Timeline 1939- J.L. Turner and Cal Turner Sr. opened J.L.
Turner and Son Wholesale in Scottsville, KY 1955- Springfield, KY
Turners Department Store was converted into the first Dollar
General Store 1967- Exceeded the $1 million net income mark 1968-
DG goes public 1973- New warehouse and office built in Scottsville,
KY 1976- $100 million sales mark 1983- Acquires 280 stores from
P.N. Hirsh Division of Interco Inc. 1985- Acquires 206 stores and a
warehouse from Eagle Family Discount Stores 1987- Launches
GED/Learn to Read Program
Slide 4
DG Timeline 1988- Ronald Reagan honors DG for its literacy
program 1989- 50 th anniversary 1,300 Stores in 23 states; 7,000
employees 1995- Opens new distribution center in Ardmore, OK 1996-
Exceeds $2 Billion sales and $100 Million net income 1997- 3,000
store mark; 25,000 employees. New distribution center in South
Boston, VA 1998- New distribution center Indianola, MS. Sales over
$3B 1999- New distribution center in Fulton, MO 2000- GHQ moves to
Goodlettsville. New DC in Alachua, FL 2001- 5,000 store mark.
Exceeds $5 Billion in sales. Opened new DC in Zanesville, OH
Slide 5
DG Timeline 2002- 6,000 th store and $6B in sales 2003- David
Perdue named chairman and CEO 2005- 8 th distribution center in
Jonesville, SC. $8B in sales 2006- 8,000 store mark. New DC in
Marion, Ind. $9B sales 2007- DG goes private after being acquired
by PE firm 2008- Rick Dreiling is named CEO 2009- DG goes public
2010- 9,000 th store in Fountain Run, KY 2011- Launches Ecommerce
website 2012- 10,000 store mark and 2 more distribution
centers
Slide 6
DG- Where are they now?
Slide 7
A Typical Dollar General Store Is roughly 7,200sf Freestanding
stores (63%) as well as strip mall stores (37%) 10k-12k SKU per
store
Slide 8
Dollar General Store: Key to Success Convenience, quality
brands and low prices -Dollar General 10-K 2012 Only the most
popular brands and sizes Procter and Gambler, Kimberly Clark,
Unilever, Kelloggs, General Mills, and Nabisco
Slide 9
Business Model Providing a broad base of customers with their
basic everyday and household needs, supplemented with a variety of
general merchandise items, at everyday low prices in conveniently
located, small-box stores. - Dollar General- 10-K Report
Slide 10
Business Model Convenient Locations- 70% serving communities
with populations of less than 20,000. Majority of customers live
within three to five miles. Time-Saving Shopping Experience-
Product offering includes most necessities. Convenient hours and
broad merchandise offering allow customers to fulfill their routine
shopping requirements and minimize their need to shop elsewhere.
Everyday Low Prices on Quality Merchandise. Low prices on quality
merchandise Low-cost operating structure Maintain a limited number
of SKUs per category Maintain strong purchasing power.
Slide 11
Measuring Success Lean expense structure is the foundation
YE2012 expenses as a percentage of sales were 21.66% Walmart
expenses as a percentage of sales YE2012: 19.21% Average DG does
$1.5M in annual sales: break it down 20 customers per hour for 12
hours per day spending an average of $17.12 $4,109/day $28,846/week
$1.5M/year Stock Price: up 138% today since November 2009