Business Analysis of Dollar General

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Dollar General

DOLLAR GENERAL

Business Overview

Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, midwestern, and eastern United States. The company offers consumable products, including paper and cleaning products comprising paper towels, bath tissues, paper dinnerware, trash and storage bags, and laundry and other home cleaning supplies; packaged food products, such as cereals, canned soups and vegetables, condiments, spices, sugar, and flour; perishables consisting of milk, eggs, bread, refrigerated and frozen food, beer, and wine; snacks that comprise candies, cookies, crackers, salty snacks, and carbonated beverages; health and beauty products, such as over-the-counter medicines, as well as soap, body wash, shampoo, dental hygiene, and foot care products; pet products, which include pet supplies and pet food; and tobacco products. It also provides seasonal products, including decorations, toys, batteries, small electronics, greeting cards, stationery products, prepaid phones and accessories, gardening supplies, hardware products, and automotive and home office supplies; and home products consisting of kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies and kitchen products, beds, and bath soft goods. In addition, the company offers apparel for infants, toddlers, girls, boys, women, and men, as well as socks, underwear, disposable diapers, shoes, and accessories. As of August 19, 2017, it operated 14,000 stores located in 44 states. The company was formerly known as J.L. Turner & Son, Inc. and changed its name to Dollar General Corporation in 1968. Dollar General Corporation was founded in 1939 and is based in Goodlettsville, Tennessee.

Dollar General

Dollar General


R&P Rank: 131
Sector: Retail
Industry:Broadline Retail
H.Q Location:Tennessee
Website: www.dollargeneral.com
Company Address:
100 MISSION RIDGE, GOODLETTSVILLE TN 37072
Ph:615-855-4000

Business Analysis of Dollar General

The Retail Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Dollar General compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Dollar General to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Dollar General with an interactive chart.

  1. Revenue Growth: Dollar General reported a revenue growth of 7.7% year-on-year during 2016. Broadline Retail Industry grew at 0.3% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Dollar General spent 69.0% of its total revenues on COGS. Broadline Retail industry average (COGS share of revenue) in the same period was 74.8%
  3. R&D share of Revenues: Dollar General R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Dollar General spent 21.4% of its total revenues on Sales, Marketing, and General Administration (SG&A). Broadline Retail industry average SG&A spending in the same period was 19.8%
  5. Inventory share of Revenues: As a percentage of revenue, Dollar General spent 15.1% of its total revenues on Inventories. Broadline Retail industry average Inventory spending in the same period was 11.0%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Dollar General invested 7.3% of its total revenues on Accounts Payable (A/P) Broadline Retail industry average Accounts Payable investment in the same period was 8.5%
  7. Accounts Receivable share of Revenues: Dollar General Accounts Receivable share of Revenues details are not available because either company does not share the data or we do not have it
  8. PP&E share of Revenues: As a percentage of revenue, Dollar General invested 11.1% of its total revenues on Property, Plants, and Equipments (PP&E). Broadline Retail industry average PPE investment in the same period was 23.2%
  9. Intangibles share of Revenues: As a percentage of revenue, Dollar General invested 27.2% of its total revenues on Intangibles. Broadline Retail industry average Intangibles investment in the same period was 5.1%
  10. Net Margins: Dollar General Net Margins in the year 2016 were 5.7%. Broadline Retail industry average Net Margins in the same period were 2.7%

Sector and Industry Association of Dollar General

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Dollar General is associated with Retail Sector and Broadline Retail Industry.

Retail sector is comprised of the following industries: Broadline Retail; Grocery Retail; Specialty Retail; Apparel Retail; Home Improvement Retail; Specialized Consumer Services. The definitions for each of the industries is as follows:

  • Broadline Retail industry includes retail outlets and wholesalers offering a wide variety of products including both hard goods and soft goods.
  • Grocery Retail industry includes retail stores that primarily offer non-perishable food that is packaged in cans, bottles and boxes, with some also having fresh produce, butchers, delis, and bakeries
  • Specialty Retail industry includes retailers and wholesalers concentrating on a Single Class of Goods, such as electronics, books, automotive parts or closeouts. It also includes automobile dealerships, video rental stores, dollar stores, duty-free shops and automotive fuel stations not owned by oil companies.
  • Apparel Retail industry consists of retailers and wholesalers specializing mainly in Clothing, Shoes, Jewelry, Sunglasses and Other accessories.
  • Home Improvement Retail industry includes retailers and wholesalers concentrating on the sale of home improvement products, including Garden Equipment, Carpets, Wallpaper, Paint, Home Furniture, Blinds and Curtains, and Building materials.
  • Specialized Consumer Services industry includes providers of consumer services such as Auction Houses, Day-care Centers, Dry Cleaners, Schools, Consumer Rental Companies, Veterinary Clinics, Hair Salons and providers of Funeral, Lawn-maintenance, Consumer-storage, Heating and Cooling installation and Plumbing services.

Industry Ranking of Dollar General

With $20.4 billion revenues, Dollar General ranked number 6 of all the companies in the US Broadline Retail industry. There were a total of 21 public companies in the US Broadline Retail industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Broadline Retail industry by revenues during 2016 were:

  1. Walmart ($482.1 billion)
  2. Costco ($118.7 billion)
  3. Target ($73.8 billion)
  4. Macy's ($27.1 billion)
  5. Sears Holdings ($25.1 billion)
  6. Dollar General ($20.4 billion)
  7. Kohl's ($19.2 billion)
  8. Dollar Tree ($15.5 billion)
  9. J. C. Penney ($12.6 billion)
  10. Dillard's ($6.8 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Dollar Generaland its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of dollar-general

Target (TGT) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Target Corp with $74 billion revenues in the year 2016 was the number 3 Broadline Retail company. Read this report to know the top competitors of Target and identify growth and cost optimization opportunities of Target

Macy’s (M) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Macy's, Inc. with $27 billion revenues in the year 2016 was the number 4 Broadline Retail company. Read this report to know the top competitors of Macy's and identify growth and cost optimization opportunities of Macy's

Sears Holdings (SHLD) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Sears Holdings Corp with $25 billion revenues in the year 2016 was the number 5 Broadline Retail company. Read this report to know the top competitors of Sears Holdings and identify growth and cost optimization opportunities of Sears Holdings

Kohl’s (KSS) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Kohl's Corp with $19 billion revenues in the year 2016 was the number 7 Broadline Retail company. Read this report to know the top competitors of Kohl's and identify growth and cost optimization opportunities of Kohl's

Dollar Tree (DLTR) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Dollar Tree Inc with $15 billion revenues in the year 2016 was the number 8 Broadline Retail company. Read this report to know the top competitors of Dollar Tree and identify growth and cost optimization opportunities of Dollar Tree

J. C. Penney (JCP) Business Analysis – Analyze Historical Performance, Strategic...

J. C. Penney Co Inc with $13 billion revenues in the year 2016 was the number 9 Broadline Retail company. Read this report to know the top competitors of J. C. Penney and identify growth and cost optimization opportunities of J. C. Penney

Revenues Analysis

Dollar General (DG) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Dollar General Corp (DG) from 2012 to 2016. Dollar General generated a total of $20.4 billion revenues during 2016. Dollar General reported a revenue growth of 7.7% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in February.

Dollar General (DG) Revenues And Revenue Growth From 2009 To 2016

This report provides the last eight years revenues and revenue growth of Dollar General Corp (DG) from 2009 to 2016. Dollar General generated a total of $20.4 billion revenues during 2016. Dollar General reported a revenue growth of 7.7% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in February.

Dollar General (DG) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Dollar General Corp (DG) revenue growth with Broadline Retail industry growth during the last five years from 2012 to 2016. Dollar General reported a revenue growth of 7.7% year-over-year during 2016. The Broadline Retail industry growth was 0.3% year-over-year during 2016. Dollar General growth was faster than the industry during 2016.

Profit Analysis