Dollar General Corp. (DG)

The Federal Trade Commission and 20 states sued Dollar General on Monday 26 October, alleging it charged shoppers more at the register than its shelves and advertisements showed 14. The complaint says the chain received at least 29,265 complaints marked "Did Not Honor Marked Price" from January 2023 through March 2026 2. It says households earning $35,000 or less account for 60 percent of the company's revenue 2.

Dollar General said in its current report that the FTC demanded significant money, which it called unreasonable and said materially overstates any harm to shoppers 1. It told CBS News that occasional price discrepancies can occur despite its policies, and that it has improved its price-accuracy processes 3. It intends to defend the case vigorously, and says a loss could have a material adverse effect on its financial statements 1.

The suit lands on a business that was gaining ground 6. In the quarter to 31 July, net sales rose 5.2 percent to $11.3 billion and net income rose to $550.3 million from $411.4 million 6. Tariff refunds, after the price cuts they paid for, added about $0.25 of the $2.48 earned per share, and customer traffic grew for a fifth quarter in a row 65.

Two questions follow it into 2027: what the court or a settlement costs, and how a new chief executive runs the chain 113. JJ Fleeman, chief executive of Ahold Delhaize USA since April 2023, is to succeed Todd Vasos on 1 January 2027 13.

JL Turner founded the business in 1939 as a wholesaler, and the first Dollar General store opened in 1955 7. In July 2007 it merged with an entity controlled by funds affiliated with KKR, the buyout firm, and left the stock market 7. It listed again on the New York Stock Exchange in November 2009, and the KKR entity sold its last shares in December 2013 7.

The pandemic year was the high point for growth 9. Net sales rose 21.6 percent in fiscal 2020 to $33.7 billion, as same-store sales, the sales of stores open at least 13 months, rose 16.3 percent 9. Shoppers came less often but put far more items in each basket, and net income rose to $2.66 billion from $1.71 billion 9.

In those years the company built DG Fresh, its own delivery of frozen and refrigerated goods to its stores, meant to cut product costs and keep shelves stocked 9. It launched pOpshelf in 2020, a small store selling mostly non-essentials such as party goods, home decor and beauty products 79.

The surge did not last 10. Same-store sales fell 2.8 percent in 2021, then rose 4.3 percent in 2022 as inflation lifted the average item price while fewer customers came in 10. Net sales reached $37.8 billion in 2022, including a 53rd week worth $678.1 million, but the gross margin slipped as shoppers leaned toward lower-margin consumables 10.

Fiscal 2023 was the turn downward 11. Same-store sales rose only 0.2 percent, shrink, goods lost to theft, damage or error, rose significantly, and operating profit fell to $2.45 billion from $3.33 billion 11. The company blamed high inventories, store standards, self-checkout and store manager turnover, and it put about $150 million more into store labor hours 11.

Todd Vasos, chief executive from 2015 to 2022, returned to the job in October 2023 7.

Fiscal 2024 brought sales but not profit 12. Net sales rose 5.0 percent to $38.7 billion, but markdowns and a heavier mix of consumables cut the gross margin 12. A review of weak stores brought $214.2 million of impairment charges, write-downs of store assets, and a plan to close 96 Dollar General and 45 pOpshelf stores 12.

Fiscal 2025, the year to 30 January 2026, was the recovery 7. Net sales rose 5.2 percent to $42.7 billion, with customer traffic up 1.6 percent 7. Lower shrink, higher markups and fewer damaged goods lifted the gross margin to 30.7 percent, and net income rose 34.4 percent to $1.51 billion 7.

Price accuracy has its own history 2. Between 2019 and 2026 the company settled seven times with six states over inaccurate pricing, paying more than $6 million, according to the complaint 2. The Independent reported in March 2026 that it had agreed to a $15 million class action settlement over shelf-price overcharges, without admitting wrongdoing 19.

Consumables

Consumables are the everyday goods: paper towels and cleaning products, packaged and fresh food, snacks, health and beauty, pet food and tobacco 7. They brought in $35.05 billion in fiscal 2025, 82.0 percent of net sales, up 5.0 percent 7. They carry the lowest gross margin of the four categories, the company says 7.

Prices are typically $10 or less, and the complaint counts around 2,000 items at $1 or less 72. National brands sit beside the company's own private brands, which it says are often priced at substantial discounts 7.

Seasonal, home products and apparel

Seasonal goods, from holiday items and toys to prepaid phones and garden and car supplies, brought in $4.33 billion in fiscal 2025, up 6.2 percent 7. Home products, from cookware to bedding, brought in $2.21 billion, up 6.7 percent, and basic apparel $1.13 billion, up 3.3 percent 7.

Seasonal and home products carry the highest gross margins 7. Non-consumables have outpaced consumables in same-store sales growth for six quarters in a row, the company says 5.

The stores

The company had 21,148 stores in 48 states and Mexico at 31 July 2026, the most of any US discount retailer by store count 5. About 80 percent sit in towns of 20,000 people or fewer, and about 75 percent of Americans live within five miles of one 7.

A typical store has about 7,500 square feet of selling space, and most new stores use an 8,500 square foot format with more coolers and, in some, fresh produce 75. Mexico, where its stores carry the Mi Súper Dollar General name, had 17 stores at 27 February 2026 7.

pOpshelf had 179 standalone stores at the end of July, and new openings have been paused since 2025 while the company reworks the concept 57. Remodels run in two programs, Project Renovate, a full remodel, and Project Elevate, a lighter refresh, with 665 and 711 done in the second quarter 5.

Delivery and advertising

Third-party delivery services and the company's own myDG Delivery reach most stores, and the company says delivery contributes meaningfully to same-store sales 5. Reuters reported in August 2025 that the DoorDash partnership was growing to 16,000 stores and that an Uber Eats tie-up had begun 20. The DG Media Network is its platform connecting brand makers with Dollar General's shoppers 7.

Distribution and offices

At 27 February 2026 it ran 20 distribution centers for dry goods, ten cold storage centers and four combined ones, 15 of them leased 7. Most goods reach the stores on its own fleet of trucks or with hired carriers using its trailers 7. Most stores are leased, many of the new ones for up to 15 years, and the head offices fill about 356,000 square feet of owned buildings in Goodlettsville, Tennessee 7.

The people

Todd Vasos is chief executive, and JJ Fleeman, chief executive of Ahold Delhaize USA since April 2023, is to succeed him on 1 January 2027 13. Donny Lau has been finance chief since October 2025, and Emily Taylor chief operating officer since November 2025 7. David Rowland became chairman of the board on 4 February 2026 15.

General counsel Rhonda Taylor stays in the post through 6 December, and Kelly Collier takes over on 7 December 14. The company employed about 194,000 full-time and part-time people at 27 February 2026 7.

The rivals

The company names Walmart, Family Dollar and Dollar Tree as its main direct competitors 7. Family Dollar has had separate owners since July 2025, when Dollar Tree sold it to Brigade Capital Management and Macellum Capital Management 21. On the buying side, its two largest suppliers provided about 11 and 8 percent of its purchases in 2025 7.

The problems

The FTC suit is the largest open matter: it alleges breaches of the FTC Act, the Gramm-Leach-Bliley Act and state laws, and seeks an injunction, money and civil penalties 1. The complaint says the company failed over 39 percent of pricing inspections in Kansas from January 2023 to early March 2026 2.

A shareholder class action filed in 2023, alleging the company misled investors about store labor, inventory and pricing, awaits a ruling on a motion to dismiss, with briefing finished on 29 May 2026 5. Fuel costs ran significantly higher in the second quarter, the company said 5.

The umbrella, in words

The store brands are Dollar General, DG, pOpshelf and Mi Súper Dollar General, and Clover Valley and trueliving are among its registered marks 7. Exhibit 21 lists subsidiaries including Dolgencorp, LLC of Kentucky, DolgenMX and two other Mexican companies, and sourcing companies in Hong Kong and Shenzhen, China 8.

It owns its head offices and 19 of its 34 distribution centers (computed) 7. It has one class of common stock, listed on the New York Stock Exchange 1.

The largest owners on recent Schedules 13G, forms for passive stakes, are Vanguard Capital Management with 7.51 percent at 31 March 2026 and Vanguard Portfolio Management with 5.24 percent at 30 June 1617. State Street reported 4.9 percent at 30 June 2026 18.

The company raised its fiscal 2026 guidance on 27 August: net sales growth of about 4.0 to 4.3 percent, and same-store sales growth of about 2.5 to 2.9 percent 6. It expects diluted earnings per share of about $7.80 to $8.00, including about $0.25 from tariff refunds in the second quarter 6. It anticipates no material effect from tariff refunds in the second half 6.

It plans capital spending of $1.4 billion to $1.5 billion and share repurchases of up to $700 million this fiscal year, which ends on 29 January 2027 67. The board declared a quarterly dividend of $0.59 a share, payable on or before 20 October 6.

It plans about 4,730 real estate projects in fiscal 2026: about 450 new US stores, about 10 in Mexico, 2,000 Project Renovate and 2,250 Project Elevate remodels, and about 20 relocations 6. In the second quarter it opened 126 stores, one of them in Mexico, and closed 33 5.

JJ Fleeman is to become chief executive on 1 January 2027, and the board intends to give him a seat that day 13. Todd Vasos is to serve as senior advisor through 2 April 2027 and to stay on the board 13. Kelly Collier becomes general counsel on 7 December, with Rhonda Taylor advising through at least 2 April 2027 14.

On the FTC suit, the company says it intends to defend itself vigorously, and that its defense could involve significant costs 1. The company told CBS News it had offered what it called a more reasonable way to calculate settlement ranges 3. None of the filings or reports read here names a hearing date 123.

The shareholder class action waits on the court's ruling on the motion to dismiss, and two federal derivative suits are stayed until that motion is resolved 5. The company said it intends to repurchase shares in the second half of the fiscal year, under an authorization with $1.4 billion remaining 6.