Dollar General to Cut About 255 Corporate Positions -- Update
October 13 2015 - 5:47PM
Dow Jones News
By Josh Beckerman
Dollar General Corp. is eliminating about 255 corporate
positions, including about 115 vacant jobs, in an effort to cut
costs and improve efficiency.
The discount retailer said store-level jobs won't be
affected.
Dollar General expects a third-quarter pretax charge of about $7
million for the move.
"Looking ahead to fiscal 2016, Dollar General expects to
continue its expense control and reduction initiative by
implementing a more rigorous budgeting process," the company
said.
Dollar General has expected heightened competition as rivals
Dollar Tree Inc. and Family Dollar Stores Inc. merged in July and
previously said it would spend more on labor in the wake of
Wal-Mart Stores Inc.'s February decision to raise hourly pay.
Dollar stores have taken market share from bigger rivals by
offering less-expensive, everyday products and by scattering more
small-footprint stores in locations that make it easy for shoppers
to run errands quickly.
Dollar General has more 12,198 stores, while Dollar Tree's
brands have more than 13,864.
In August, Dollar General reported second-quarter earnings
slightly above Wall Street estimates as sales at existing locations
grew 2.8%. It plans to report third-quarter results Dec. 3.
Write to Josh Beckerman at josh.beckerman@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 13, 2015 17:32 ET (21:32 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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