Lessons of service are taught from the top down at Dollar General - Buyers & Sellers - Column

Discount Store News, Sept 19, 1994 by Don Longo

In 1993, Dollar General adopted a new mission: serving others. "Those two simple words capture the spirit which is at the core of this company's corporate culture," said chairman, president and ceo Cal Turner Jr.

Every year when I sit down to judge entries in DISC (Discounters In Service to the Community)--DSN's community service awards program, I am impressed with Dollar General's entry. It's only natural that the Southern retailer would adopt such a simple, yet meaningful mission statement.

Last month, I had the pleasure of introducing the newest inductee into DSN's Discounting Hall of Fame. Cal Turner, father of the current chairman, has appropriately been called the father of the dollar store industry. He initiated the dollar store concept, with no item selling above $1, in 1956 in the first Dollar General store in Springfield, Ky.

Within 10 years, the company grew to 255 stores with annual sales of $25.8 million. In 1968, the company's common stock was sold to the public for the first time. Dollar General stores are small and plain, with bin-like counters and long pipe racks. Most are in small towns, and they carry a variety of general merchandise, with an emphasis on soft goods.

Under Cal's leadership, Dollar General grew to 761 companyowned and franchised stores by 1977. In that year, Cal named his son as the company's president. Last year, Dollar General broke the billion dollar sales mark, recording sales of more than $1.3 billion. That was a 23.1% sales increase and a 12.7% same store sales gain. More importantly, earnings increased 36.5%.

The founder's inspiring leadership laid the groundwork for the company's current corporate culture. He was just a teenager when he opened one of his dad's stores in a small hamlet in Tennessee. He didn't let the fact that the store was a flop dim his interest in retailing. He gained experience and honed his instincts as a trader and merchant until they were practically legendary. One of his sayings that has become part of company corporate culture is that "If it's bought right, it's half sold."

His willingness to buy almost anything at the right price is part of company lore. According to one story, a woman once fell into an empty cardboard box while visiting a Dollar General warehouse. An employee, seeing only her thrashing arms and legs above the edge of the box, asked the question: "What in the world has Cal Turner gone and bought now?"

Cal never liked speaking to large groups, although he is said to be a whiz at one-to-one meetings and relationships. He happily relinquished his public spokesman role to his son. Even at the SPARC awards dinner last month in Chicago when he was inducted into the Hall of Fame, Cal brought his son on stage to share the limelight. The sight of father and son together (the the look of love, admiration and pride in Cal Jr.'s eyes) will remain in my mind for a long time.

At a time when every act of a public person or major company is analyzed and dissected for hidden motives, it was heartwarming to see an act of genuine warmth. I have no trouble believing that all 10,000 employees of Dollar General take their new mission very seriously.