Dollar General Corp. (NYSE: DG) is in the right spot at the right time in today’s economic recovery. It is a trade-down economic play, but the dollar store segment has been successful in grabbing up into the lower priced items that are actually under $5 and $10. It is leading the pack of dollar stores and is now going even further after Wal-Mart Stores Inc. (NYSE: WMT) and other retailers. This morning it has announced part of its 2011 expansion plans with the creation of what will be 6,000 new jobs under its plan to open 625 new stores in fiscal 2011.
The company said that the new stores and new jobs will be spread across its existing operating area in 35 states, but it will also expand into three new states with new stores in Connecticut, Nevada and New Hampshire. Dollar General was recently noted as one of our top ten stocks to own for the next decade. Today’s expansion news is part of that reason.
The expansion is into new suburban, rural and metropolitan markets on the heels of two years of positive job growth for the company.
Dollar General’s jobs creation is now said to over 15,000 from 2009 to 2011. In addition to the 625 new stores in 2011, the company said that it plans to remodel or relocate 550 stores.
Creating jobs at the dollar store level might not exactly be the win that the Obama administration nor that GOP lawmakers would want to boast about. Still, at this point in the recovery a job is better than no job.
JON C. OGG
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