Dollar General
Discount retailer serving rural America.
PE-OWNED
Acquired by KKR2007-07-01
What Made It Great
Everyday low prices in convenient neighborhood locations.
What PE Will Likely Do
Dollar General stores will have fewer product options and smaller inventory levels as the company reduces inventory to improve cash flow metrics
The quality and freshness of food and household products in Dollar General stores will decline as the company defers maintenance and cuts costs
Dollar General will begin closing down underperforming stores in rural areas, reducing access to affordable shopping options for many communities
Expected Timeline
“0 to 6 months months”
Announcements about 'transforming' Dollar General to improve operational efficiency
“6 to 12 months months”
First round of store closures in rural areas and staff reductions announced
“12 to 24 months months”
Noticeable decline in product selection, store cleanliness, and freshness of perishable items like milk and produce
“24 to 48 months months”
Bankruptcy rumors begin to circulate as more aggressive cost-cutting measures are implemented, including deferring maintenance and renovations
“48 to 60 months months”
Potential restructuring, bankruptcy, or fire sale of Dollar General assets
What You Can Do
Actions
Consumers in rural areas should be aware of the potential for store closures and reduced access to affordable shopping options at Dollar General
Shoppers should closely monitor the quality, freshness, and selection of products at their local Dollar General stores, and be prepared to shop elsewhere if standards decline
Consumers should voice their concerns about the impact of the KKR acquisition to local community leaders and elected officials to advocate for the preservation of affordable shopping options
Alternatives
Look for family-owned or employee-owned businesses