Dollar General posts 2.8% slide in Dec comp store sales
06 Jan '06
3 min read
Basic goods discount retailer Dollar General Corporation reported total retail sales for the December five-week period ended December 30, 2005, equaled $1.049 billion compared with $1.007 billion last year, an increase of 4.2 percent.
For the December period, same-store sales decreased 2.8 percent compared with a 1.7 percent increase in the prior year December period.
The Company believes that continued high gasoline and heating fuel prices and the pressure on consumers' discretionary spending resulted in shopping trip consolidation, negatively impacting sales.
Aggressive marketing and pricing by competitors during the month also appeared to impact the Company's sales.
In particular, seasonal, home and apparel did not perform as anticipated in December.
For the nine-week period ended December 30, 2005, Dollar General total retail sales increased 5.1 percent to $1.74 billion from $1.65 billion for the nine-week period ended December 31, 2004. Same-store sales for the nine-week period decreased 1.8 percent.
For the 48-week period ended December 30, 2005, Dollar General total retail sales increased 10.2 percent to $7.8 billion from $7.1 billion for the 48-week period ended December 31, 2004.
Same-store sales for the 48-week period increased 2.3 percent.
Year-to-date through December 30, 2005, the Company opened 730 stores and closed 122 stores, including 41 stores closed as a result of hurricane damage.
marketing@alchempro.com
