Dollar General: From a Single Store to the Largest Small-Box Retailer - Essay Sample

Paper Type:  Essay
Pages:  4
Wordcount:  1064 Words
Date:  2023-02-09


1939 was the year when a publicly-traded company by the name Dollar General founded J.L. Turner. It was situated in Kentucky and provides a broader range of merchandise selection. The merchandises include; seasonal, consumables, apparel and home products (Dow Jones Institutional News, 2018). It has grown from the known single wholesale store to the extent of the largest small-box retailer in the country. Also, it is still committed to serving its customers, community and employees passionately even today. On June 1955, the original Dollar General store was erected in Springfield where each item with the store valued not more than one dollar. By 1957, $5 million was the annual Dollar General's sales for the 29 stores. During 1968, it went public by the name Dollar General Corporation and currently, it is the topmost discount retailer that possesses over 15,000 stores within 44 states (Weinstein, 2018). The Company continues to reinforce the simplicity that paved its success to what it is today by most of its item selling below one dollar. It has remained continuously real to its modest ethic of friendly customer delivery as well as hard work.

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External Environment

The external environment of Dollar General Corporation comprises of the political, social, economic, environmental, technological and legal factors. The political factors have significant roles in impacting the long term profitability of Dollar General Corporation within a specific market or country. Since it operates in many countries it, therefore, tends to be exposed in varying political environment types and risks that originate from political systems. The Company uses the economic factors of a country like inflation rate, growth rate and economic indicators of the industry to forecast its growth capability in that region. It is because of these several types of economic factors that affect its performance in a particular area (Fern Fort University). The social factors that the corporation goes through include the culture of the society which influences its culture. Also, the shared attitudes and beliefs determine how its marketers understand given market customer.

Present Strategies and Objectives

In retail, Dollar General Corporation is the dominant force by providing its everyday products at lower prices. Though, the reliance upon cheap selling has pinched its proceeds. Therefore, the Company has looked forward in the introduction of a new strategy, which is higher-margin merchandise. It has been able to add an assortment of candles, pillows, home decorations, wrapping paper and gift bags to over 1000 stores in the past year. The strategy is just an example of the "driving profitable top-line growth". The others include procedures such as stores' in-stock position improvement as well as continuously providing items at competitive prices. The present objectives of the corporation are to capture the new growth opportunities and enhancement of its low-cost worker position (Fern Fort University). Also, has the goal of offering higher-margin merchandise to approximately 2,400 stores, which is 15% of over 15,000 locations it operates in the United States by the end of this year.

Where the Company Will be in 5 Years

It is vivid that the Company is heading in the right direction. The company, having realized at the right time that their primary strategy of selling cheap consumable items is pinching their profit is very essential. In five years, the Company will have attained to offering higher-margin merchandise to over 75% of the stores in over 15,000 locations in the United States. It is based on the rate that they will have done 15% by the end of 2019 (Fern Fort University). Also, Dollar General Corporation will have utilized strategies such as stores' in-stock position improvement and continuously providing items at competitive prices. They will have enabled the Company to capture growth opportunities available and to enhance its position as a low-cost operator within the five years.

Recommended Strategy

As the CEO of Dollar General Corporation, I will recommend the strategy that leads to customers shopping more and attracting more of them. I have every reason to believe that the new schedule of higher-margin merchandise can do so. It is vivid that the discount chains have attracted more new customers and also the existing ones are shopping more. Therefore, I strongly recommend this strategy to be used in all of the stores of Dollar General Corporation.

Competitive Competitors' Strategies and the Most Effective

Dollar General Corporation faces several competitive strategies from its major rivals. For instance; Dollar Tree has efficiently strategized is offering products which cost only one dollar or less. Also, it has majored in the sale of party goods and home of products as compared to Dollar General Corporation. Walmart is the other competitor of Dollar General Corporation, and its many approaches to increasing its market are the cost leadership via low product differentiation and selling them at low cost (Ferguson, 2018). The Company also conducts market segmentation at a low level and too intensive growth strategies that enable it to reduce cost. Among all these strategies, the one that appears to be the most effective is the low-level segmentation of market method. It is through offering retail service to each consumer within all segments of the Company's target market.

Combating the Strategies

In tackling the strategies used by Walmart and Dollar Tree, Dollar General Corporation should exercise higher-margin merchandise. Something that it is currently doing to ensure that existing customer buys more and even attracts new ones. Also, Dollar General Corporation can open up more stores on those areas where Walmart and Dollar Tree is underperforming and offer better services as compared to its rivals. Alternatively, it can buy up some of its competitors stores (Ferguson, 2018).


Dow Jones Institutional News. (2018, December 4). Press Release: Dollar General Corporation Report -3-. Newspaper Article. Retrived from,contains,Dollar%20General%20%20corporation&offset=0

Ferguson, E. (2018). Walmart's Generic Competetive Dtrategy and Intensive Growth Strategies. Retrieved from

Fern Fort University. (n.d.). Dollar General SWOT Analysis / Matrix. Retrieved from

Weinstein, M. (2018). Dollar General Registers Growth and Development. (TOP 125:#5 DOLLAR GENERAL CORPORATION, LLC). Retrieved from,contains,Dollar%20General%20%20corporation&offset=0

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Dollar General: From a Single Store to the Largest Small-Box Retailer - Essay Sample. (2023, Feb 09). Retrieved from

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