Dollar General not giving up on Family Dollar acquisition

Dollar General CEO Rick Dreiling said earlier this month that his company remains committed to acquiring Family Dollar, who has already agreed to be purchased by Dollar Tree, pending government approval. (See Family Dollar rejects Dollar General's higher offer, to pursue deal with Dollar Tree.)

Dreiling said Dollar General expects to provide Family Dollar shareholders with an update on its offer prior to Family Dollar's December 23 shareholder meeting.

According to an industry analyst cited in a Supermarket News story, "From an economic perspective, Dollar General has room to raise its bid, although unless it has very good visibility on the Federal Trade Commission's thinking on store divestitures, there would likely be a limit beyond which it could go."

Over the summer, Dollar Tree offered $8.5 billion for Family Dollar Stores, which was followed by Dollar General's $9.2 billion cash offer. Family Dollar chose to pursue the Dollar Tree bid, stating that "a transaction with Dollar General has a high likelihood of not closing due to antitrust considerations."

Dollar General to test fuel station

Dollar General announced last week that it will "test pilot" a fuel station at one of their stores in Hanceville, AL. The test is a joint venture with Mansfield Oil, and the companies will jointly evaluate the results.

According to Dollar General CEO Rick Dreiling, the project "is consistent with our strategy of continually looking for new and better ways to meet our customers' needs for value and convenience, and enhancing our position as America's general store."

Yes, he called Dollar General "America's general store."

Dollar General cautious, but still planning hundreds of new stores

Despite strong third quarter sales and earnings results, Dollar General CEO Rick Dreiling is cautious about the fourth quarter. He says customer spending has been erratic, which indicates uncertainty about the economy.

"It is my belief that our core customers are concerned about their financial outlook, which is resulting in a dynamic that is driving the current competitive environment to be more promotional," said Dreiling.

For the fourth quarter, Dollar General is forecasting modest comparable sales gains, and flat-to-slightly decreased gross profits.

The company has 10,300 stores and plans to add 635 more during fiscal 2013, including 40 Dollar General Plus stores and 20 fresh-grocery Dollar General Market stores.