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1. A smaller, ultra-discount version of Walmart, often located in small towns and rural areas.

2. Like an extreme-value general store, similar to Aldi or Lidl but with a broader range of household goods alongside groceries.

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• Consumables: This category includes everyday essentials such as paper and cleaning products, packaged food, perishables, health and beauty aids, and pet supplies.
• Seasonal Products: These are items related to various holidays, seasonal events, and celebrations, as well as outdoor and garden supplies.
• Home Products: This category features household items including kitchenware, small appliances, home décor, and basic domestic goods.
• Apparel: Dollar General offers a range of basic clothing items for men, women, and children, including socks, underwear, and casual wear.

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Dollar General (symbol: DG) sells primarily to individuals, not to other companies. As a discount retail chain, its business model focuses on direct sales to consumers.

The company serves the following categories of customers:

• Value-Driven Consumers / Lower-to-Middle Income Households: This represents a core segment of Dollar General's customer base. These individuals and families are often highly price-sensitive, living on fixed or limited incomes, and rely on Dollar General for everyday necessities such as food, household goods, and personal care items at affordable prices. They prioritize obtaining maximum value for their money.
• Rural and Underserved Urban Shoppers / Convenience Seekers: Dollar General strategically places many of its stores in smaller towns, rural areas, and urban neighborhoods that may lack easy access to larger supermarkets or other retail options. These customers value the convenience and proximity of Dollar General for their daily and weekly shopping needs, often using it as a primary or essential secondary shopping destination due to its accessibility.
• Supplemental Shoppers / Bargain Seekers: This category includes consumers who might frequent Dollar General for specific discounted items, impulse purchases, seasonal goods, or quick fill-in trips between larger grocery hauls. They appreciate the availability of low-priced items and the convenience of a nearby store for a few essential items, complementing their main shopping at other retailers.

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Todd Vasos Chief Executive Officer

Todd Vasos returned to Dollar General as Chief Executive Officer in October 2023, having previously served as CEO from June 2015 to November 2022. He was a member of Dollar General's Board of Directors since 2015. Vasos first joined Dollar General in 2008 as Executive Vice President, Division President and Chief Merchandising Officer and was promoted to Chief Operating Officer in November 2013. Before his tenure at Dollar General, he held leadership positions with Longs Drug Stores Corporation, Phar-Mor Food and Drug Inc., and Eckerd Corporation. During his initial seven-year term as CEO, Dollar General significantly expanded its store base, increased annual sales revenue by over 80%, and more than doubled its market capitalization. Vasos has also served as a director of KeyCorp since July 2020.

Donny Lau Executive Vice President and Chief Financial Officer

Donny Lau was appointed Executive Vice President and Chief Financial Officer of Dollar General, effective October 20, 2025. Prior to this role, he served as the Chief Financial Officer of Zaxby's. Lau has extensive prior experience with Dollar General, having held various leadership positions including Senior Vice President of Finance and Chief Strategy Officer.

Steve Deckard Executive Vice President, Strategy and Development

Steve Deckard serves as the Executive Vice President of Strategy and Development at Dollar General.

Tracey Herrmann Executive Vice President, Store Operations

Tracey Herrmann holds the position of Executive Vice President of Store Operations at Dollar General.

Kathy Reardon Executive Vice President and Chief People Officer

Kathy Reardon is the Executive Vice President and Chief People Officer for Dollar General.

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The public company Dollar General (symbol: DG) faces several key risks to its business:

1. Economic Pressures and Consumer Spending: Dollar General's business is particularly vulnerable to economic downturns, high inflation, and tariffs, as a significant portion of its customer base consists of lower-income households. These factors can lead to reduced discretionary spending by consumers, impacting sales and potentially squeezing profit margins.
2. Intense Competition: The discount retail sector is highly competitive. Dollar General faces aggressive competition from major retailers like Walmart and Target, as well as other dollar store chains such as Dollar Tree, all vying for budget-conscious shoppers. This competitive landscape can limit Dollar General's pricing power and ability to maintain profitability.
3. Operational Execution and Inventory Management: The company faces risks related to efficient inventory management, including maintaining optimal stock levels and product mix to meet customer demand without incurring excessive costs, inventory shrinkage, or damages. Significant levels of inventory shrink and damages were reported in 2024. Additionally, the successful and cost-effective implementation of its aggressive expansion plans, including new store openings and remodels, is crucial, and any failure in execution could materially and adversely affect its business and financial performance.

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One clear emerging threat for Dollar General (DG) is the significant and escalating issue of "shrink" (inventory loss due to theft, damage, and operational errors). Dollar General's management has explicitly and repeatedly highlighted increased shrink as a major and growing headwind in recent earnings calls (e.g., Q3 2023), identifying it as a primary driver of reduced gross margin rates and a substantial challenge impacting overall profitability. For a low-margin discount retailer, the intensifying severity of shrink poses a systemic threat to its operational sustainability and its ability to maintain competitive pricing, which is fundamental to its business model.

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Dollar General (DG) operates primarily as a discount retailer offering a wide array of products across several key categories. The addressable markets for its main products and services in the U.S. are substantial.

• Dollar & Variety Stores Market: The overall market size for Dollar & Variety Stores in the U.S. was approximately $116.9 billion in 2024 and is projected to reach $119.2 billion in 2025.
• Consumables (including food, snacks, health and beauty aids, cleaning supplies, paper products, and pet products): This category represents the largest portion of Dollar General's sales. The U.S. grocery retail market, which encompasses a significant portion of these consumables, is valued at over $900 billion in 2025. Separately, total in-store convenience store sales in the U.S. are estimated at $297 billion in 2024, a market where Dollar General's consumable offerings also compete.
• Seasonal and Home Products (including seasonal items, home decor, housewares, and small furniture): The U.S. home decor market size is estimated at $215.21 billion in 2025.
• Apparel (including basic apparel, underwear, and disposable diapers): The U.S. apparel market is valued at approximately $395 billion in 2025.

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Expected Drivers of Future Revenue Growth for Dollar General (DG)

Dollar General (DG) is anticipated to drive future revenue growth over the next 2-3 years through a combination of strategic initiatives focused on store expansion, operational enhancements, and digital penetration. These drivers are underpinned by the company's commitment to its "Back to Basics" strategy, aiming to improve fundamental aspects of its business and cater to its core customer base seeking value.

1. New Store Growth and Market Expansion: Dollar General continues to expand its physical footprint by opening new stores, including its traditional Dollar General stores, DG Market, DGX, and pOpshelf formats. The company is also venturing into new markets, such as Mexico, with its Mi Súper Dollar General stores. This consistent store expansion directly contributes to increased sales volume and market penetration.
2. Enhancement of Same-Store Sales (Comparable Sales): A key focus for Dollar General is to boost sales at existing locations through initiatives that increase customer traffic and average transaction amounts. Efforts include improving in-stock levels, enhancing customer service, and optimizing merchandising to ensure products align with local customer demand. The company reported a 1.3% increase in same-store sales in Q3 2024, driven by growth in both average transaction amount and customer traffic.
3. Store Remodels and Relocations (Project Elevate and Project Renovate): Significant investments are being made in remodeling and relocating existing stores through programs like "Project Elevate" and "Project Renovate." These initiatives aim to modernize stores, enhance the shopping experience, and improve operational efficiency. Project Elevate remodels are specifically designed to bolster performance in mature stores, with an expected first-year annualized comparable sales lift ranging from 3% to 5%.
4. Digital and E-commerce Expansion: Dollar General is growing its digital capabilities, including expanding delivery services through partnerships with DoorDash and Uber Eats, as well as its in-house same-day delivery service. The integration of SNAP and EBT for online orders further broadens customer access and taps into new segments, driving online revenue growth.
5. "Back to Basics" Strategy and Operational Efficiencies: The company's "Back to Basics" strategy is critical, emphasizing improvements in store execution, inventory management, and shrink mitigation. This strategy, which includes SKU rationalization to focus on high-velocity items, aims to streamline assortments, reduce costs, improve gross margins, and enhance the overall customer experience, particularly in its strong consumables category.

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