Good position in "extreme value" retailing segment; Good track record of profitability; and Satisfactory cash flow protection measures. Intensely competitive industry; Core customer has limited spending capacity; and Inconsistent store-level execution. The ratings on Dollar General Corp. reflect its solid position in the "extreme value" retail segment, a relatively consistent long-term record of profitability, and strong cash flow protection measures. Mitigating factors include the company's participation in the highly competitive discount retail environment, current execution difficulties, and risks associated with its expansion program. Goodlettsville, Tenn.-based Dollar General is the oldest and largest player in the dollar-retailing segment, operating more than 8,000 small-box stores across 30 states. Its merchandising strategy is to provide national brands at low prices for its core
