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Dollar General Mulls California Entry

Dollar General said it plans to expand its operations into New Hampshire, Connecticut and Nevada and to use the Nevada expansion as a launching pad to make an entry into California.

GOODLETTSVILLE, Tenn. — Dollar General here said Tuesday it plans to expand its operations into New Hampshire, Connecticut and Nevada this year and to use the Nevada expansion as a launching pad to make an entry into California.

During a conference call with analysts, Rick Dreiling, chairman, president and chief executive officere, also said the company plans to "revisit" its Dollar General Market concept this year to explore growth opportunities, "and we anticipate additional expansion in the second half of the year," he noted.

The company operates 57 Dollar General Markets, which include perishables along with dry goods. Three stores were remodeled last year, he said, "[using] the science and art of category management, which has enabled us to do a much better job aligning the selection and the adjacencies and the flow of the store. The numbers we have experienced in the remodels have been very satisfying, and what we're doing now is stepping back and evaluating the future of that concept."

The company also said it plans to build a new distribution center in Bessemer, Ala., which is scheduled to open next February.

For the fourth quarter, which ended Jan. 28, Dollar General said adjusted net income, including a favorable tax benefit of $6.8 million, rose 30% to $226 million, while sales rose 9.4% to $3.5 billion and same-store sales rose 3.8%.

For the year adjusted net income rose 53% to $649 million, sales climbed 10.5% to $13 billion — the third consecutive year in which sales increased by 10% or more, Dreiling pointed out — and comps increased 4.9%.