GOODLETTSVILLE, Tenn. – Dollar General on Thursday said it will expand internationally for the first time, opening 10 stores in Mexico during fiscal 2022. The retailer also said it plans to have 1,000 pOpshelf stores in operation by the end of fiscal 2025. Dollar General introduced pOpshelf a year ago as a new suburban store concept offering a treasure-hunt experience, delivered through continually refreshed merchandise, with about 95% of the items priced at $5 or less.
The announcements came as the retailer reported its third-quarter results, which included a 3.9% increase in net sales, to $8.5 billion. Same-store sales declined 0.9% in the 13 weeks to October 29. Operating profit declined 13.9% to $665.6 million.
Todd Vasos, Dollar General’s chief executive officer, said he was pleased with the third-quarter results. “During the quarter, we made meaningful progress advancing our key initiatives, while continuing to successfully deliver for our customers, despite a challenging operating environment,” he said.
Vasos said Dollar General will engage in nearly 3,000 real estate projects next year. Included among these will be the opening 1,100 new stores. Dollar General now has more than 18,000 stores across 46 states. The company has been introducing fresh produce to more of its stores, and expanding into heath care. The company last summer hired its first chief medical officer, Albert Wu. Expanded health offerings include more varieties of cough and cold remedies, dental products, nutrition supplements, and medical aids.
The net sales increase in the third quarter was primarily driven by positive sales contributions from new stores, the company said in a press release. The decline in same-store sales was attributed to a decreased customer traffic, though that was partially offset by a rise in average transaction amount. Comps were suppressed by a decline in the apparel and seasonal categories, partially offset by growth in the consumables and home products categories.
Cash flow from operation through the first three quarters amounts to $2.2 billion.
“Overall, we remain focused on our mission of Serving Others, and are confident in our plans to drive long-term sustainable growth and value for our shareholders,” Vasos said.