The COVID-19 pandemic hasn't slowed down Dollar General's appetite to open an otherwise insane number of new stores in 2021.
The dollar store chain told investors on its earnings release Thursday it would open 1,050 new locations this year as it looks to capitalize on a large increase in consumer spending amid the economic recovery. In another Herculean feat, Dollar General (DG) said it would remodel 1,750 stores and relocate 100 sites. It will also add produce departments in 1,000 stores.
Dollar General operates about 17,000 stores. The company says its stores are located within five miles of approximately 75% of the U.S. population.
The aggressive store plans follow a solid first quarter for Dollar General. Same-store sales fell 4.6% as Dollar General saw a large amount of shoppers stocking up last year at the start of the pandemic. On a two-year stacked basis, Dollar General noted same-store sales were up 17.1%. Operating profits and earnings in the quarter rose 4.9% and 10.2%, respectively from a year ago.
"Importantly, beginning in mid-March and in line with the timing of stimulus payments, we saw a meaningful acceleration in sales relative to the first two weeks of the month, especially in our non-consumable categories," Dollar General CEO Todd Vasos told analysts on a conference call.
Here is how Dollar General performed compared to Wall Street estimates for the first quarter:
Net Sales: $8.4 billion vs. $8.23 billion
Adjusted EPS: $2.82 vs. $2.16
The company raised its full-year earnings outlook to $9.50 to $10.20 from $8.80 to $9.50.
Added Vasos on the health of the consumer, "I would tell you that we're very happy with what we see on that customer acquisition side. So our core shopper continues to have a lot more money than you normally would and — spending a great deal of that with us which is great to see."
Shares of Dollar General rose about 5% on the session.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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