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Dollar General Developing Faster, Fresher Prototype

GOODLETTSVILLE, Tenn. — Dollar General will roll out a new prototype for all its stores in 2016, the company announced recently during its 2015 fiscal second-quarter earnings call. The new store model will offer speedier checkout, a greater focus on perishables and health and beauty, and a more customer-friendly shopping experience.

"The consumer will be able to have faster, more convenient checkout, an attribute that is a high priority for our core consumer," stated CEO Todd Vasos. "We have value-engineered the design to be capital efficient and easier to operate for our store teams."

To emphasize perishables and help moms find quick meal solutions or fill-in items, Dollar General will expand cooler penetration across its entire store base. This was prompted by research that shows a basket with a perishable item is nearly 50 percent higher than the chain average.

"This is a big opportunity that we know how to capitalize on, as we have already increased the cooler count on average by just over 50 percent since 2008," Vasos noted.

Overall, consumables made up 75.7 percent of Dollar General's revenues last year, up from 63 percent a decade ago.

To improve the health and beauty category, the company plans to expand its offerings across segments such as hair care, cough and cold, over-the-counter medicines, skin care and nail care.

"We are well positioned to capitalize on this trend given our brand offerings and price relevancy," Vasos said. "Our ongoing affordability initiative will be front and center with the new fresh approach."

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