Time New York: Wed 28 Sep 13:09 pm  |  Save 15% on H&R Block Online

  
caticonslite_bm_alt

Dollar General Plans to Hire 10K Employees by Mid-October

Zacks

Leading discount retailer, Dollar General Corporation DG has announced its intention to hire 10,000 workers by mid-October. The new hiring will not only fill the current vacancies but also support the company’s planned store expansion program. Following, the development the company’s shares gained nearly 1.5% on Sep 15, 2016.

The company further said that it will hire both part-time and full-time workers. The hiring also includes permanent positions like store managers, assistant store managers, lead sales associates as well as store associates. Notably, the company has hired nearly 42,000 employees since 2008.

Dollar General is accelerating its pace of new store openings. The company opened 700 new outlets and remodeled or relocated 915 stores during fiscal 2014. In fiscal 2015, the company inaugurated about 730 new stores, and relocated or remodeled about 881 stores.

The company plans to open about 900 new stores and relocate or remodel around 875 stores in fiscal 2016. During fiscal 2017, the company plans to open about 1,000 stores and remodel or relocate approximately 900 stores. The company is now focusing on smaller format stores as they require less capital expenditure and will help to cope with space constraint. Response from the company's DG 16 store format is encouraging.


However, the major concern for this Zacks Rank #4 (Sell) company in the past few years is the lower-than-expected sales. The company generated sales of $5,391.9 million in the second quarter of fiscal 2016 missing the Zacks Consensus Estimate of $5,491 million. This marked the 12th straight quarter of sales miss.

Comparable-store sales also came below management’s expectations on account of deflation in retail food price across perishable items, fall in both Supplemental Nutrition Assistance Program (SNAP) participation rates and benefit levels, unseasonably mild spring weather and stiff competition. Dollar General informed that price deflation and the reduction in SNAP benefits adversely impacted comparable-store sales by about 60 to 70 basis points.

Stocks to Consider

Better-ranked stocks worth considering in the sector include Big Lots Inc. BIG, Burlington Stores, Inc. BURL and Ross Stores Inc. ROST. All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

Zacks Investment Research
<-- You can share this post with your network,
or give us your opinion and leave a comment.
Be sure to check our RSS feeds for updates.