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Dollar Stores Reducing SKUs and Enhancing Efficiency in Restocking

06/20/2024

In the recent Dollar General analysts’ call, Kelly Dilts, Executive Vice-president and CFO of Dollar General, described an initiative to reduce in-store inventory applying advanced technology.  During the most recent quarter, Dollar General reduced store inventory by 9.5 percent and culled non-consumables and discretionary items by 22.5 percent.

 

Dollar General is attempting to improve on-time delivery of full truckloads through improved logistics.  The company has been able to close 7 of 12 temporary warehouses with the remainder to be terminated by the end of 2024. Dollar General will activate new distribution centers in Arkansas and Colorado during the current calendar year.

 

Dollar Tree is attempting a similar program in addition to closing non-performing stores.  The company was impacted by the loss of a large distribution center in Oklahoma as a result of tornado damage.

 

Both dollar-store chains are removing self-checkout stations with Dollar General pulling 12,000 units among its stores to reduce theft.