Dollar General Plans to Exit 400 Locations, Curb Growth

GOODLETTSVILLE, Tenn. - Dollar General here will shutter 400 locations next year and slow its development pace for the next two years, the discount chain said yesterday. The company will take $138 million in charges, which include $74 million for the store closings and another $64 million related to the adoption of new inventory model that it said would allow it to deliver fresher merchandise to its stores. After opening an estimated 600 stores this year, the chain will add 300 new stores next year and 400 in 2008. It plans to ramp up expansion again in 2009 with another 700 new stores. In a conference call yesterday, David Purdue, chairman and chief executive officer, said the company would continue to test and expand its DG Markets format, which combines groceries and general merchandise. Also, Dollar General yesterday said it had selected one of its board members, CPG veteran David Beré, as president and chief operating officer, a post that had been vacant for several years.