In an effort to stabilize the struggling business, Dollar General reinstated Todd Vasos as CEO, replacing Jeffery Owen less than a year after his appointment, reported Reuters. Vasos will take charge immediately.
Dollar General issued a statement from Michael Calbert, chair of the board of directors: “Dollar General has operated from a position of strength for nearly 85 years, and the board believes Todd is the right leader to refocus the company’s strategic direction and priorities to stabilize the business. Since Todd’s retirement in April, he has remained active as a member of our Board and is acutely aware of the challenges facing our business and the industry more broadly.”
In all of the last four quarters, Dollar General has missed profit estimates, struggling with a shift in demand to less-profitable food and items, store traffic declines, inventory shrink and competition.
Former CEO Owen had previously admitted that the company could be doing more, said Yahoo! Finance. Regarding the challenges the company was facing, Owen said, “quite frankly, some were self-inflicted … We’ve left sales on the table.”
"We still see, from a share perspective, where our primary dollars are the same they've been for many, many years," Owen said. "And we believe there's still much share for us to gain there, and that's primarily drug and grocery."
Dollar General hopes “to restore stability and confidence" in the company with the reinstatement of Vasos. J.P. Morgan analysts say that Vasos will be focused on improving in-stock levels in stores, tidying up store operations, refocusing labor investments and implementing new accounting methods to minimize inventory shrink.
During Vasos’ previous time as CEO between June 2015 and November 2022, the retailer added 7,000 more stores to its footprint and its annual revenue had risen more than 80%.
In a previous effort to turn around sales, Dollar General encouraged shoppers to buy groceries there. In July, the company announced significant investments into its private brand food products, growing the Clover Valley brand to over 600 items total.