DG Dollar General Corp.

Risks

• Economic factors may reduce our customers’ spending, impair our ability to execute our strategies and initiatives, and increase our costs and expenses, which could result in materially decreased sales or profitability.
• Our plans depend significantly on strategies and initiatives designed to increase sales and profitability and improve the efficiencies, costs and effectiveness of our operations, and failure to achieve or sustain these plans could materially affect our results of operations.
• If we cannot timely and cost-effectively execute our real estate projects and meet our financial expectations, or if we do not anticipate or successfully address all of the challenges imposed by our expansion, including into new states or metro areas, it could materially impede our planned future growth and our profitability.
• We face intense competition that could limit our growth opportunities and materially adversely affect our results of operations, financial condition and liquidity.
• Inventory shrinkage may negatively affect our results of operations and financial condition.
• Our cash flows from operations, profitability and financial condition may be negatively affected if we are not successful in managing our inventory balances.
• Failure to maintain the security of our business, customer, employee or vendor information could expose us to litigation, government enforcement actions and costly response measures, and could materially harm our reputation and affect our business and financial performance.
• A significant disruption to our distribution network, the capacity of our distribution centers or the timely receipt of inventory could adversely affect sales or increase our transportation costs, which would decrease our profitability.
• Risks associated with or faced by our suppliers could adversely affect our financial performance.
• Product liability, product recall or other product safety or labeling claims could adversely affect our business, reputation and financial performance.
• A significant change in governmental regulations and requirements could materially increase our cost of doing business, and noncompliance with governmental regulations could materially adversely affect our financial performance.
• Litigation may adversely affect our reputation, business, results of operations and financial condition.
• Our current insurance program may expose us to unexpected costs and negatively affect our financial performance.
• Natural disasters and unusual weather conditions (whether or not caused by climate change), pandemic outbreaks, terrorist acts, and global political events could disrupt business and result in lower sales and otherwise adversely affect our financial performance.
• Material damage or interruptions to our information systems as a result of external factors, staffing shortages or challenges in maintaining or updating our existing technology or developing or implementing new technology could materially adversely affect our business and results of operations.
• Failure to attract, train and retain qualified employees while controlling labor costs, as well as other labor issues, could adversely affect our financial performance.
• Our success depends on our executive officers and other key personnel. If we lose key personnel or are unable to hire additional qualified personnel, our business may be harmed.
• Our private brands may not be successful in improving our gross profit rate and may increase certain of the risks we face.
• Because our business is somewhat seasonal, adverse events during the fourth quarter could materially affect our financial statements as a whole.
• Deterioration in market conditions or changes in our credit profile could adversely affect our business operations and financial condition.
• New accounting guidance or changes in the interpretation or application of existing accounting guidance could adversely affect our financial performance.