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Essay / Research Paper Abstract
A 5 page paper discussing the financial performance of Dollar General, the leading competitor in its category. Opening 2 stores daily, the company will have 7,400 stores open by the end of 2004. Despite its success, Dollar General does not appear to be managed closely enough. It has large cash reserves and no debt, but its current ratio is twice that which reflects optimal capital structure. Only 2 of its 4 primary product categories are successful across the chain, and it is woefully behind in implementation and use of technological tools. The company would be well advised to give more balanced attention to the stores it is now so adept at opening quickly. Bibliography lists 7 sources.
Page Count:
5 pages (~225 words per page)
File: CC6_KSmgmtDollGen.rtf
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Unformatted sample text from the term paper:
slightly more than two new stores for each day of the year, Dollar General will have opened another 695 stores by the end of 2004. At the end of
3Q04, Dollar General was operating just under 7,200 stores and expected to have 7,400 open by the end of the year (Case Study, 2004). It does not generate the
revenue that Wal-Mart does, but it does operates more stores. Dollar General targets the low- to middle-income consumer, and while many consumers made significant gains during the boom years
of the 1990s, many others did not. As high-end retailers markets grew during that time, so did Dollar Generals. Environmental Conditions Dollar
General has honed opening new stores into an art and a science (Case Study, 2004), but it has not yet achieved successful management of them in the same degree.
The retailer focuses on four primary product categories, but it is truly successful only with two of those categories. Table 1 illustrates. Table 1. September 2004 Sales by
Major Category Product Category FY 2004 Percent of Sales FY 2003 Percent of Sales Est. Same-Store Sales Change Highly Consumable 68% 65% +9% Seasonal 13% 13% +3% Home Products
11% 13% -10% Basic Clothing 8% 9% -7% Source: (Dollar General Reports Increased September Sales, 2004) At $8.49, Dollar Generals average total
retail sale is on par with a fast-food lunch for two. The average sale is up from "$8.33 in the same period last year" (Dollar General Reports Increased September
Sales, 2004), and customer "transactions in same-stores increased approximately 2.6 percent" (Dollar General Reports Increased September Sales, 2004). Having to restate items for several previous years has affected current
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