America's real small town retailer - Dollar General - Editorial

Discount Store News, Jan 6, 1992 by Tony Lisanti

America's Real Small Town Retailer

Once upon a time there was a man with a vision about building a retail chain that offered quality products at low prices to average family folks. He lived in a small southern town . . . No, this is not another Wal-Mart story!

It's a story of a chain founded on the same principles of Wal-Mart, one that shares the philosophical, strategic and merchandising ideas of the boys from Bentonville.

Like Wal-Mart, this chain is rich in family tradition, has its roots and headquarters in a southern town of 4,000 people, and preaches the everyday low price policy. The company gets little recognition for its achievements, but is well-known by residents in the rural communities its stores serve. This company, which has grown significantly over the past five years, is a bright spot in retailing today, not only for its sales performance but for its community service programs as well. And this 52-year-old company is among the hot growth discount retailers for the 1990s. Sales are projected to top $720 million in fiscal 1992 with more than 1,500 stores in 23 states.

The man of vision was J.L. Turner, who, along with his son Cal, opened a general store for poor people. The town was Scottsville, Ky., where the company is still headquartered. The strategy was to sell merchandise at low prices to poor families. (The 77-year-old Turner still reviews sales reports, visits stores and tells stories of the good old days in his cozy office adorned with memorabilia. Said Turner recently, "If we keep our costs even one percent lower than the competition, we have nothing to worry about.")

The key to success for Dollar General, like Wal-Mart, is its simple and well-defined strategy that chairman, president and ceo, Cal Turner Jr., is obsessively committed to implement. The mission simply states: "Neighborhood stores our customers count on for value in quality basic merchandise."

A new management team will lead the chain through the 1990s, automating distribution and improving store operations, Turner has made a commitment to the customer, the vendor, and the employees. He has made a commitment to the future.