Dollar General Corp. in Goodlettsville, TN, has pumped nearly $260 million into new property and equipment so far this year.
The capital expenditures include $95 million relating to new leased stores and store purchases, $85 million for improvements and upgrades to existing stores, $44 million for remodels and relocations of existing stores, $18 million for distribution and transportation improvements and $17 million for systems-related capital projects.
Year-to-date, the discount retailer has opened 491 new stores and relocated or remodeled 458 stores.
Dollar General said it plans to open 600 new stores and to remodel or relocate a total of 500 stores in 2010. Total capital expenditures for the fiscal year are currently expected to be $410 to $430 million.
The company's previous guidance was for capital expenditures of $350 million.
The upward revised estimate includes the anticipated purchase of certain of the company's store real estate locations and initial costs relating to the construction of a new distribution center in the Southeast.
In 2011, the company plans to open 625 new stores, including expansion into Connecticut, New Hampshire and Nevada. In addition, the company plans to remodel or relocate 550 stores. Selling square footage is expected to increase 7% in 2011.
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Mark Heschmeyer