How DG is Getting Back to Basics

At Dollar General, we pride ourselves on the role we play as America’s neighborhood general store. Today, we operate more than 20,000 locations in 48 states, allowing us to reach more customers and serve more communities than ever before.

We continue to work across all levels of the organization to optimize the business for the current retail environment, while staying true to the fundamentals that have been foundational to our success over the past 85 years. We have implemented a refreshed approach to getting Back to Basics, which focuses on the following three key areas to drive operational excellence, better serve our customers and create long-term value for our shareholders, which were outlined in our fiscal year 2023 Annual Report filed with the Securities and Exchange Commission (the “SEC”) on April 5, 2024.

·       In Our Stores: In 2023, DG made a significant labor investment in stores with the goal of driving improved execution in important areas such as store standards, inventory management and in-stock levels. Additionally, to mitigate inventory shrink and facilitate a positive customer experience, we re-deployed labor to ensure a stronger associate presence at checkout. Finally, we are also taking actions aimed at reducing turnover at the store manager position, which we believe will benefit both the employee and customer experience.

·       In Our Supply Chain: In 2023, DG made significant progress in addressing distribution center capacity constraints, while also reducing the number of outside storage facilities. We also made meaningful progress toward our goal of optimizing inventory levels and improving operational efficiencies and productivity throughout the supply chain. These actions have driven improved service levels and on-time deliveries for stores and customers.

·       In Our Merchandising: As always, DG remains focused on offering great value on the products its customers want and need. Thanks to dynamic actions by our teams in 2023, DG continues to be positioned well in both everyday pricing and price gaps relative to peers and other classes of trade. We have taken measures to provide even greater value for our customers by highlighting private brands and other opportunities for savings, while also maximizing the effectiveness of promotional activities designed to drive traffic and share growth.  

The information above summarizes information contained in the 2023 Annual Report and speaks only as of April 5, 2024. Dollar General undertakes no obligation, and specifically disclaims any duty, to update or revise any forward-looking statements as a result of new information, future events or circumstances, or otherwise after April 5, 2024, except as otherwise required by law.

Cautionary Disclosure Regarding Forward-Looking Statements

The above disclosure includes “forward-looking statements” within the meaning of the federal securities laws, including those regarding our future Back to Basics efforts and related expectations. You can identify these statements because they are not limited to historical fact or they use words such as “aimed,” “believe,” “continue,” “designed,” “ensure,” “focuses,” “goal,”  “long-term,” “will” and similar expressions that concern our strategies, plans, initiatives, intentions or beliefs about future occurrences or results or other future matters. All forward-looking statements are subject to risks, uncertainties and other factors that may change at any time and may cause our actual results to differ materially from those that we expected. We derive many of these statements from our operating budgets and forecasts, which are based on many detailed assumptions that we believe are reasonable. However, it is very difficult to predict the effect of known factors on future results, and we cannot anticipate all factors that could affect future results that may be important to you. All forward-looking information should be evaluated in the context of these risks, uncertainties and other factors. Important factors that could cause actual results to differ materially from the expectations expressed in or implied by such forward-looking statements include, but are not limited to those identified under the “Risk Factors,” “Business” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” sections in our Annual Report on Form 10-K filed with the SEC on March 25, 2024, and other filings we make from time to time with the SEC.

All forward-looking statements are qualified in their entirety by these and other cautionary statements that the Company makes from time to time in its SEC filings and public communications. The Company cannot assure the reader that it will realize the results or developments the Company anticipates or, even if substantially realized, that they will result in the consequences or affect the Company or its operations in the way the Company expects. The forward-looking statements speak only as of April 5, 2024. The Company undertakes no obligation, and specifically disclaims any duty, to update or revise any forward-looking statements as a result of new information, future events or circumstances, or otherwise after April 5, 2024, except as otherwise required by law. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, the Company.