The ratings on Goodlettsville, Tenn.-based Dollar General Corp. are based on its good business position, partially offset by concerns about financial and operating controls associated with an aggressive expansion program. Dollar General has a track record of high single-digit same-store sales and a niche position in small town markets serving the "extreme value" segment of the discount industry. Its base of about 5,900 small-format stores provides inexpensive consumable basics to low- and fixed-income families. However, the stores are increasingly facing competition from large-format discounters and other "dollar" retailers. This pressure increases the importance for Dollar General to successfully execute its in-store performance. Store-level execution has been inconsistent, despite good historical same-store sales, in large part due to the demands of
