Dollar General Corporation
) tumbled over 7% on the index last Friday following the
announcement of CEO Rick Dreiling's departure. Dreiling has decided
to retire and will quit office on May 30, 2015 or when the company
zeroes on a successor.
The board will conduct both internal and external search for
Dreiling's successor. Once the CEO position is filled, Dreiling
will serve as the chairman of board during transition period.
Dreiling has been at the helm for nearly six years and is credited
for stabilization of the discount retail giant during the economic
mayhem. Moreover, under his leadership, Dollar General has expanded
its product offering leading to an 80% rise in sales to $17.5
billion. The store count increased 38% and crossed the 11,000 mark.
As of May 2, 2014 the company operated 11,338 stores in 40 states.
However, this development could delay activist investor Carl
Icahn's plans of selling off
Family Dollar Stores Inc.
). Speculations were rife about Family Dollar selling itself
possibly to Dollar General. Icahn, who holds a 9.4% stake in Family
Dollar, has pushed the retailer to sell itself after a dismal
financial run as per market reports. Shares of Family Dollar also
fell 1.7% on the last trading day.
Dollar General is one of the largest discount retailers in the
United States. The company trades in low priced merchandise
typically $10 or less. The company is committed toward better price
management, cost containment, private label offering, effective
inventory management, as well as merchandise and operational
initiatives to drive sales and margins.
The company is also accelerating its pace of new store openings.
The company opened 650 new outlets and remodeled or relocated 582
stores during fiscal 2013. During fiscal 2014, the company expects
to open about 700 new stores, and to relocate or remodel about 500
stores. Dollar General has displayed a fabulous comparable-store
sales growth story. Fiscal 2013 represented the 24th consecutive
year of comparable-store sales growth.
Currently, Dollar General carries a Zacks Rank# 3 (Hold).
Other retail stocks worth considering include
Citi Trends, Inc.
Burlington Stores, Inc.
). Citi trends sports a Zacks Rank #1 (Strong Buy) while Burlington
stores carry a Zacks Rank #2 (Buy).
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