Dollar General has turned to a familiar face to lead, following a string of poor quarterly results and ongoing accusations of safety violations at the federal level.
Todd Vasos, who acted as Dollar General CEO from 2015 to 2022, has been reappointed to the position. Vasos was previously serving on DG’s Board of Directors and will continue to be on the board. He replaces Jeff Owen, who was CEO for less than a year.
Dollar General has been struggling financially over the last few months and the discount retailer recently adjusted its fiscal year 2023 outlook.
Originally it was looking at net sales growth between 1.3% and 3.3% but has altered that to 1.5% to 2.5%. Same-store sales growth has moved from a decline of 1% to a growth of 1% to a decline of 1% to 0%.
The company’s second quarter financial earnings were dismal. Operating profit fell more than 24% to $692.3 million. In the second quarter of 2022, it was just over $900 million. Net income took a big hit as well — down 30.9% year-over-year.
The economy, however, might be mostly to blame for the earnings downturn. GlobalData Retail Analyst and Managing Director Neil Saunders told CNN that Dollar General’s shoppers were struggling with the higher cost of living.
DG also continues to take heat from the Occupational Safety and Health Administration for failed inspections and earlier in the year workers protested a pattern of federal safety violations.
Vasos led Dollar General during one of the most impactful periods in the company’s history. The retailer hit several milestones, including growing to approximately 7,000 stores, adding around 60,000 new jobs, increasing sales revenue by more than 80%, and more than doubling its market capitalization to about $58 billion.
Dollar General received a number of recognitions during the run. The company was named to Fortune Magazine’s World’s Most Admired Companies List in 2020 and 2022 and Forbes Top 25 Responders to COVID-19 Pandemic in 2020.
Vasos joined Dollar General in 2008 as executive vice president, division president, and chief merchandising officer before he was promoted to chief operating officer in 2013.
