Dollar General CEO out; successor named
A familiar face has retaken the helm of Dollar General Corp.
The discounter said that Todd Vasos, current board member and former CEO has been appointed CEO, effective today. Vasos, who previously served as Dollar General’s CEO from June 2015 to November 2022, has agreed to return to lead the company for the “foreseeable future.”
Vasos succeeds Jeff Owen, whose separation from the company and resignation from its board is effective today, Dollar General said. Owen was named CEO in November 2022, after serving as Dollar General’s COO since 2019. His tenure dates back to 1992 when he joined the company as a store manager trainee.
“The board has tremendous respect for Jeff and greatly appreciates his many contributions to the company, especially during his long tenure leading our retail operations,” said Michael Calbert, chairman, Dollar General. “However, at this time the Board has determined that a change in leadership is necessary to restore stability and confidence in the company moving forward.”
Vasos joined Dollar General in 2008 as executive VP, division president and chief merchandising officer and held the role of COO from 2013 until his promotion to CEO. Under his watch, the company grew its store base by about 7,000 stores, added almost 60,000 net new jobs, boosted annual sales revenue by more than 80%, and more than doubled its market capitalization to around $58 billion.
In addition, under Vasos’s leadership, Dollar Genera developed and delivered key strategic initiatives such as the self-distribution of frozen and refrigerated goods (DG Fresh), as well as various non-consumable initiatives, including its newest retail concept pOpshelf, and significant digital expansions.
Vasos returns to the helm of Dollar General as the chain is challenged with slower sales growth. In August, the company reported weaker-than-expected second-quarter earnings and sales and cut its full-year guidance.
In announcing the CEO change, Dollar General also cut its full-year profit guidance again, saying it now expects earnings per share of about $7.10 to $7.60, compared to its previous guidance of $7.10 to $8.30. Net sales are expected to grow 1.5% to 2.5%, compared to its previous expectation of 1.3% to 3.3%.
“I am honored to be rejoining Dollar General at this pivotal time for our company,” said Vasos. “I look forward to getting back to work with the broader team as we strive to return to a position of operational excellence for our employees and customers and deliver sustainable long-term growth and value creation for our shareholders.”
Despite its recent soft results, Dollar General remains committed to expansion. It opened 215 stores during the quarter and is track to open 990 stores for the full year, along with 2,000 remodels.
As of August 4, 2023, the company operated 19,488 Dollar General, DG Market, DGX and PopShelf stores across the United States and Mi Súper Dollar General stores in Mexico.