Reuters logo
BRIEF-Dollar General CEO - States which've seen SNAP reductions are about 100 basis pts worse in comparable sales
December 1, 2016 / 4:35 PM / 10 months ago

BRIEF-Dollar General CEO - States which've seen SNAP reductions are about 100 basis pts worse in comparable sales

Dec 1 (Reuters) - Dollar General Corp

* CEO on conf call - Q3 comparable sales hurt by softer customer traffic

* CEO - estimate combined headwinds from average unit retail price deflation and reduction in SNAP benefits hurt Q3 same-store sales by 150 -175 basis pts, Q2 by 100-115 basis pts

* Proactive pricing actions were implemented selectively across about 17% of store base and on about 450 items

* CEO - “while these investments (proactive pricing actions) take time to deliver the full impact, seeing expected improvements in transactions, units and weekly same-store sales across vast majority of stores where we’ve made these investments.”

* CEO - “we invested in incremental promotional activity to drive traffic, although results were mixed and did not meet our overall expectations”

* CEO - “as we moved through Q3, became apparent that our incremental actions would not be able to overcome the decline in traffic ...requiring greater-than-anticipated markdowns to move through inventory”

* CEO - plan about 1,000 new store openings in 2017

* CEO - “clearly, our consumers’ budgets are pinched”

* CEO - “the cumulative effect of macroeconomic factors such as reduction of snap participation and benefit levels and increased housing and healthcare expenses appear to have taken a noticeable toll on (consumer) spending”

* CEO - states which’ve seen SNAP reductions have seen comps go down by about 100 basis points

* CEO - states which’ve seen SNAP reductions are approximately 100 basis points worse in comparable sales Further company coverage:

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below