Dollar General: Labor and Strategic Challenges

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They brought back Todd Vasos. Do you think he's the right person for the job right now?

I don't know if the CEO is the one that really... I guess I'm struggling a bit because the major issues with Dollar General today are really on the execution at the store level. The stores are struggling to staff. The wages are not competitive in the marketplace, and as a result, products don't get to the shelf in a timely fashion.

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They brought back Todd Vasos. Do you think he's the right person for the job right now?

The stores aren't kept as we used to call it, faced out, fronted, clean, neat, and easy to shop. With reduced labor, they're struggling with labor hours. There's a process, you probably know this, that we do on-hand inventory adjustments. Stores were charged to go through the stores with a program called Nones and Tons.

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When you hear them talking about slowing down on store openings and planning more remodels to improve stores, do you think that's the right approach? Could it be a solution for the issues, or is it more like a distraction for investors?

No, I think it's a good approach. Many of us wondered how long we could continue opening up to a thousand stores a year, which we did for several years. It doesn't always give you a chance to catch your breath. While we did a large number of remodels during that time, I think focusing on remodels is beneficial. By doing more remodels than new store openings, you're improving existing stores, getting them in better condition. Additionally, during these remodels, we're incorporating the best of what we've done, including new innovations and categories, while eliminating weaker ones. This approach does help and brings decent comparable sales.

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