Dollar General Corporation is an American chain of variety stores headquartered in Goodlettsville, Tennessee. As of October 2, 2023, Dollar General operates 19,414 stores in the continental United States and Mexico.
The company began in 1939 as a family-owned business called J.L. Turner and Son in Scottsville, Kentucky, owned by James Luther Turner and Cal Turner. In 1955, the name changed to Dollar General Corporation and in 1968 the company went public on the New York Stock Exchange. Fortune 500 recognized Dollar General in 1999 and in 2020 reached #112. Dollar General has grown to become one of the most profitable stores in the rural United States with revenue reaching around $27 billion in 2019.
History
J.L. Turner and Son: 1939–1964
Dollar General has its origin in Scottsville, Kentucky, with James Luther "J.L." Turner and his son Cal Turner. James Turner's father died in an accident in 1902 when James was only 11. James quit school to work on the family farm, helping to provide for his mother and siblings, and subsequently never completed his education. After two unsuccessful attempts at retailing, James became a traveling dry goods salesman for a Nashville wholesale grocer. James left the sales job after 10 years and settled his family in Scottsville, Kentucky. During the Great Depression, he began buying and liquidating bankrupt general stores. James' only child Cal Turner accompanied his father to these closeouts at a young age, gaining valuable business knowledge and skills.
In October 1939, James and Cal opened J.L. Turner and Son with an initial investment of $5,000 each. The switch to retailing resulted in annual sales above $2 million by the early 1950s. By the mid-1950s Turner had 35 department stores in Kentucky and Tennessee. In 1955, Cal Turner developed his idea of a retail store selling goods for a dollar, based on the Dollar Days promotions held at other department stores, by converting Turner's Department Store in Springfield, Kentucky, into the first Dollar General Store. In 1964 J.L. Turner died leaving his son Cal Turner to succeed him.
1968–2002
The company Cal Turner co-founded went public as Dollar General Corporation in 1968, posting annual sales of more than $40 million and net income in excess of $1.5 million. In 1977, Cal Turner Jr., who joined the company in 1965 as the third generation Turner, succeeded his father as president of Dollar General. Cal Jr. led the company until his retirement in 2002. Under his leadership, the company grew to more than 6,000 stores and $6 billion in sales. In 1997 a distribution center was established in South Boston, Virginia.
In 2000, Dollar General opened a new corporate headquarters in Goodlettsville, Tennessee. By the end of 2000, sales at Dollar General exceeded $4 billion. The distribution center in Homerville, Georgia, was closed in April 2000 and operations were moved to a new distribution center in Alachua, Florida.
Cal Jr. retired in 2002 and was succeeded by David Perdue on April 2, 2003.
2003–present
Dollar General entered the grocery market with the establishment of Dollar General Market in 2003. In 2004, Dollar General expanded to low-cost Asian markets by opening a sourcing office in Hong Kong.
On June 21, 2007, CEO David Perdue announced his resignation leaving David Bere as interim CEO. One month later, all shares of Dollar General stock were acquired by private equity investors for $22 per share. An investment group consisting of affiliates of Kohlberg Kravis Roberts (KKR), GS Capital Partners (an affiliate of Goldman Sachs), Citigroup Private Equity and other co-investors completed an acquisition of Dollar General Corporation for $6.9 billion.
As a part of the transition to a privately held company, Dollar General assessed each location at the end of its lease against a model known as "EZ Stores". This assessment included evaluating whether the location had a loading dock, garbage dumpsters, adequate parking, and acceptable profitability. Stores that did not pass this evaluation were relocated or closed. Over 400 stores were closed as part of this initiative.