Dollar General plans to remodel, relocate or open 2,900 stores across the U.S. by the end of the year, the company said on Thursday (Aug. 26), after spending the last several months building new distribution centers and bolstering its selection of health and beauty merchandise.
The company’s net sales for the second quarter of fiscal 2021, ending July 30, dropped 0.4 percent to $8.7 billion and same-store sales dipped 4.7 percent year over year, although they were up 14.1 percent since the same time two years ago.
Dollar General reported net income of $637 million for the second quarter of 2021, down 19 percent compared to $788 million in the second quarter of 2020.
“Despite what remains a challenging operating environment, including additional uncertainties brought on by the delta variant and pressures on the global supply chain, our team has continued to successfully adapt and deliver for our customers,” Todd Vasos, Dollar General’s CEO, said in the company announcement.
The company opened 270 new stores in the quarter, remodeled another 477 and relocated 25 others. Dollar General plans to execute 2,900 real estate projects in fiscal 2021, including 1,050 new store openings, 1,750 store remodels and 100 store relocations.
In the last several months, Dollar General completed the launch of its DG Fresh distribution center network and opened its first pOpshelf store-within-a-store concept. The company also executed more than 750 real estate projects, including new pOpshelf stores and larger Dollar General outposts.
Dollar General invested in its stores to the tune of $518 million in the second quarter of fiscal 2021, including about $248 million on improvements, upgrades, remodels and relocations of existing stores; $126 million on distribution and transportation-related projects; $125 million on store facilities; and $19 million for information systems upgrades and technology-related projects.
Related: Amazon, Dollar General Lead Retail Hiring Surge Within Tricky Labor Market
Dollar General plans to hire 50,000 people by Labor Day to staff and service its new stores. According to the retailer, 75 percent of the U.S. population lives within five miles of one of its 17,400 store locations.
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