Dollar General opens 1st international store in Mexico
Dollar General has officially crossed the border. The major discount retailer celebrated its international expansion into Mexico with the first Mi Súper Dollar General store grand-opening, in Escobedo, Nuevo León, in early March.
Dollar General first revealed its international expansion plans in December 2021. In November 2022, the company issued its goal of operating up to 35 stores in the country by the end of fiscal 2023.
According to the retailer, Mi Súper Dollar General was developed with a customer-first focus, tailor-made to help consumers find great prices and convenient shopping experiences for all of their needs within their own neighborhood. The brand, which resonated well with consumer focus groups, connotes the idea of a general store focused on serving customers with the products they want and need most.
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Each store will include financial services, a bakery and a tortilleria. Products are sourced primarily from Mexico and include fresh produce, health and beauty products, home cleaning supplies, pet care, housewares, stationery, and other household essentials.
“We are extremely excited to open our Mi Súper Dollar General doors to provide affordable household essentials to Escobedo residents,” said Gary Morales, Mi Súper Dollar General’s director of operations. “In the future, each store will be tailored to fit the wants and needs of nearby customers so they can provide for their families through a convenient shopping experience.”
“The opening of the first Mi Súper Dollar General store in Mexico highlights our teams’ strong dedication to serving more communities with access to affordable everyday essentials,” noted Jeff Owen, Dollar General’s CEO. “I am proud of our team in Mexico and look forward to Mi Súper Dollar General being a force for opportunity as we continue to grow our presence in Mexico.”
Mi Súper Dollar General expects to boost the economic development in the country through the generation of jobs and career growth opportunities in stores; at its Mexico store support center, in San Pedro Garza García; and the development of local suppliers.
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Although its recent fourth-quarter sales results came in below expectations, Dollar General reported gains in both net and same-store sales, as well as growth in market share and new customers. For Q4, Dollar General’s net sales increased 17.9% to $10.2 billion, and same-store sales increased 5.7% compared with Q4 2021, driven by an increase in average transaction amount but partly offset by a modest decrease in customer traffic. Operating profit increased 17.1% to $933.2 million, and diluted earnings per share (EPS) increased 15.2%.
Looking forward to FY23, Dollar General is reiterating its previously stated sales goals of net sales growth of approximately 5.5% to 6% and same-store sales growth in the range of 3.0% to 3.5%. Diluted EPS growth in the range of approximately 4% to 6% is also expected. The company still plans to execute 3,170 real estate projects in FY23, including 1,050 new store openings, 2,000 remodels and 120 store relocations.
As of March 3, Goodlettsville, Tenn.-based Dollar General operated 19,147 Dollar General, DG Market, DGX and pOpshelf stores across the United States and Mi Súper Dollar General stores in Mexico.
This story originally appeared on Progressive Grocer.