Dollar General Reports Increased December Sales

January 06, 2005

GOODLETTSVILLE, Tenn.--(BUSINESS WIRE)--Jan. 6, 2005--Dollar General Corporation (NYSE:DG) today reported total retail sales for the five-week period ended December 31, 2004, equaled $1.007 billion compared with $911 million last year, an increase of 10.5 percent. Same-store sales for the December period increased 1.7 percent. The average customer purchase in December was approximately $9.87 compared to $9.69 in the same period last year. Customer transactions in same-stores increased approximately 0.5 percent.

December sales by major merchandise category were as follows:

                       FY 2004           FY 2003      Est. Same-Store
                  Percent of Sales  Percent of Sales    Sales Change
Highly Consumable         51%               50%              +5%
Seasonal                  28%               27%              +1%
Home Products             11%               13%              -7%
Basic Clothing            10%               10%              -5%

For the nine weeks ended December 31, 2004, Dollar General total retail sales increased 11.0 percent to $1.7 billion from $1.5 billion in the same period a year ago. Same-store sales for the nine-week period increased 2.4 percent.

For the 48 weeks ended December 31, 2004, Dollar General total retail sales increased 11.3 percent to $7.1 billion from $6.4 billion in the same period a year ago. Same-store sales for the 48 weeks increased 3.0 percent.

New Store Openings

The Company opened seven new stores and closed 10 stores during the period. Year-to-date, the Company opened 718 new stores and closed 97 stores.

About Dollar General

Dollar General is a Fortune 500^® discount retailer with 7,321 neighborhood stores as of December 31, 2004. Dollar General stores offer convenience and value to customers by offering consumable basic items that are frequently used and replenished, such as food, snacks, health and beauty aids and cleaning supplies, as well as a selection of basic apparel, housewares and seasonal items at everyday low prices. The Company store support center is located in Goodlettsville, Tennessee. Dollar General's Web site can be reached at www.dollargeneral.com.

CONTACT: Dollar General Corporation, Goodlettsville
Investor Contact:
Emma Jo Kauffman, 615-855-5525
or
Media Contact:
Tawn Earnest 615-855-5209
www.dollargeneral.com


SOURCE: Dollar General Corporation