Everything about Dollar General totally explained
Dollar General is a chain of
variety stores operating in 35
U.S. states. The chain operates about 8,205 stores (as of June 1, 2007), and its headquarters is located in
Goodlettsville, Tennessee, a suburb of
Nashville. As of March 12, 2007, the company is in the process of being acquired by William Kravis Watson, a
private equity firm, who intends to take the company back to privately-owned status.
Store/Company website
The stores were founded in 1939 by Cal Turner in
Scottsville, Kentucky. Turner was
illiterate and later created a Literacy Fund which helps people learn to read; the fund donates computers and books to local schools and libraries.
Dollar General stores are typically in small
shopping plazas or strip
malls in local
neighborhoods. The company acquired the 280 stores of the
P.N. Hirsh Division of Interco, Inc. (now
Furniture Brands International, Inc.) in 1983 and in 1985 added 206 stores and a warehouse from
Eagle Family Discount Stores, also from Interco, Inc. In recent years, the chain has started constructing more stand-alone stores, typically in areas not served by another general-merchandise retailer. In some cases, stores are within a few city blocks of each other.
Dollar General offers both name brand and generic merchandise — including off-brand goods and closeouts of name-brand items — in the same store, often on the same shelf.
Although it has the word "dollar" in the name, Dollar General is
not a
dollar store in the strict sense of the phrase, because it has goods that are priced at more (or less) than a dollar. However, goods are usually sold at set
price points of penny items and up to the range of 50 to 60 dollars, not counting phone cards, trac fone minutes, and loadable store gift cards.
Dollar General typically serves
communities that near
Wal-Marts. It competes in the dollar store format with national chains
Family Dollar and
Dollar Tree, regional chains such as
Fred's in the southeast, and numerous independently owned stores.
Concepts
Since the turn of the century, Dollar General has experimented with stores that carry a greater selection of grocery items. These stores (similar to the
Wal-Mart Supercenter, but much smaller) operate under the name "Dollar General Market".
Recently, Dollar General began selling produce, meat, and baked goods in new stores called "Super Dollar Generals" in former
supermarket locations, even though this idea is similar to the Dollar General Market.
When the first Dollar General store opened in
Scottsville, Kentucky, on June 1, 1955, the concept was that no item in the store would cost more than one dollar. The idea became a success, and other stores owned by J.L. Turner and his son Cal Turner were quickly converted. By 1957, annual sales of Dollar General’s 29 stores were $5 million.
The Turners didn't reach this level of success without obstacles. James Luther (J.L.) Turner’s father died in an accident in 1902 when J.L. was only 11. J.L. had to quit school so he could work the family farm and help provide for his mother and siblings. He never completed his education. J.L. knew his limited education demanded that he become a quick study of the world around him.
After two unsuccessful attempts at retailing, J.L. became a traveling dry goods salesman for a Nashville wholesale grocer. J.L. left the sales job after 10 years and settled his family in
Scottsville, Kentucky. During the Depression, he began buying and liquidating bankrupt general stores. J.L.’s only child, Cal Turner, Sr., accompanied his father to these closeouts at a young age, gaining valuable business knowledge and skills.
In October 1939, J.L. and Cal opened J.L. Turner and Son Wholesale with an initial investment of $5,000 each. Wholesaling quickly gave way to retailing – J.L.’s third and final attempt at retailing. The switch to retailing resulted in annual sales above $2 million by the early 1950s and the rest is history.
J.L. died in 1964. Four years later, the company he co-founded went public as Dollar General Corporation, posting annual sales of more than $40 million and net income in excess of $1.5 million. In 1977, Cal Turner, Jr., who joined the company in 1965 as the third generation Turner, succeeded his father as president of Dollar General. Cal Jr. led the company until his retirement in 2002. Under his leadership, the company grew to more than 6,000 stores and $6 billion in sales.
Acquisition
Dollar General is no longer a
publicly traded company. On July 6, 2007, all shares of Dollar General
stock were acquired by private equity investors for $22.00 per share. An investment group consisting of affiliates of
Kohlberg Kravis Roberts & Co. L.P. (KKR), GS Capital Partners (an affiliate of
Goldman Sachs),
Citi Private Equity and other co-investors completed an acquisition of Dollar General Corporation for a total enterprise value of $7.3 billion.
As a part of the transition to a privately held company, Dollar General is assessing each location as leases run out against a model known as "EZ Stores". This assessment includes evaluating whether the location has a loading dock, garbage dumpsters, adequate parking, and acceptable profitability. Stores that don't pass this evaluation are closed. Over 400 stores have been closed already as part of this initiative.
Other facts
- Dollar General accepts EBT food cards, personal checks, Visa, and Discover, as both credit and debit. Dollar General only accepts Master Card as a debit, and they currently don't accept American Express. Cash back isn't offered.
- Dollar General's return policy requires a receipt that's completely intact and legible.
- Dollar General policy requires employees to greet guests upon store entry and departure.
Further Information
Get more info on 'Dollar General'.
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