US: Dollar General Says Early Tobacco Sales Returns Promising

Source from:  The Tennessean  03/26/2013

Dollar General Corp.'s early results from tobacco sales have been promising, the Goodlettsville-based retailer's top executive said today.

Tobacco sales have been running about a third higher than expected as the company continues to add cigarettes to its more than 10,500 stores, said Rick Dreiling, chairman and CEO, during an earnings conference call.
 
More noteworthy: A third of those sales involve the customer buying only cigarettes or other tobacco products, he said.
 
"We view that as a person stopping into the store for the first time," Dreiling told analysts while reporting fourth-quarter and fiscal 2012 financial results. "We're seeing a nice comp (comparable sale) increase and a nice increase in (customer) traffic.
 
That was the primary reason why the discount retailer announced last year it would begin selling tobacco products. Dollar General also was responding to competitors who recently have added tobacco products to their shelves.
 
Tobacco products should be available in all Dollar General stores by the middle of this year, the company said.
 
Dollar General also is continuing with plans to sell beer and wine in more stores, he said. While about 60 percent of the company's stores are in areas where beer and wine sales are allowed, only 40 percent have alcohol sales licenses. Enditem