A Better Life SERVING OTHERS REPORT 2020 - Dollar General
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A Better Life SERVING OTHERS REPORT 2020
SERVING OTHERS REPORT 2020
Contents
1 About this Report 16 Serving Our Employees About This Report
Our mission of Serving Others, the
3 Letter from our CEO 23 Serving Our Communities foundation on which our business was built
4 Dollar General at a Glance 27 Serving the Environment and continues to operate today, serves as
a guiding force to support the company’s
5 Our History 33 Managing Our Supply Chain future, including our commitment to
environmental, social and governance
7 Our Mission 36 Corporate Governance
(ESG) matters. This report provides
8 Who We Are 43 SASB Index information about our efforts and initiatives
in this space, including select metrics from
9 COVID-19 Update 44 Chemical Policy the Sustainability Accounting Standards
Board (SASB) standards for the Consumer
12 Serving Our Customers
Goods—Multiline and Specialty Retailers
and identifies where our programs are
aligned with, and help support, the United
Nations Sustainable Development Goals
(SDGs). This document covers the fiscal
year ending January 29, 2021, unless
otherwise noted.
1
Sustainable Development Goals
The 17 Sustainable Development Goals,
SDGs, set forth a framework to build a
better world for people and our planet
by 2030, and are designed to be applied
by governments and organizations
worldwide. Our Serving Others program
supports and aligns most closely with
the highlighted seven goals. As we
continue to enhance our program, we
will seek ways to further how we can
positively impact the SDGs.
2
CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
Letter from our CEO
Over the course of Dollar General’s 82 years of business, we have proudly walked
alongside our neighbors through both the good times and the challenging ones. We have
been there with open doors helping meet basic needs. Over the past year, the resiliency
of our business model and the dedication of our team members allowed us to quickly
adapt in a changing environment to serve the needs of our customers and our DG family.
When COVID-19 forced closures wellness of those around us strive to be an important part of
and limited interactions with was on all of our minds, we also the fabric of our communities and
FROM OUR CEO
others, we were one of the first extended our telehealth benefits create opportunities for others Todd J. Vasos
Our fiscal 2019 was one of celebrations as we marked our 80th anniversary
retailers to offer senior hours to and waived all telehealth co-pays to thrive.
and opened our 16,000 th
store location. While much has changed in the
Chief Executive Officer
retail
landscape since our founding in 1939, Dollar General’s mission of Serving Others
our customers. Additionally, we for our associates. remains strong and steadfastly integrated into the fabric of our business.
In the following pages, we
increased the number of stores Our second annual Serving Others Report serves as an extension of that
As we grow and further share a glimpse of our journey
mission by communicating the many ways in which we serve our customers,
with DG pick-up capabilities employees, communities and shareholders every day. Our core values help
strengthen our company, we to strengthen our position as
guide our more than 155,000 employees in more than 16,500 stores, more than
to provide added ease and 20 traditional and DG Fresh distribution centers and our Store Support Center
realize that in order to build a a purpose-driven company. It
serve others every day.
convenience. When global supply
pathway to continued success highlights
Whether our
we are helping efforts
customers stretchto
theircreate a positive
budget, generating
chains were affected, we worked economic impact with each new store and distribution center, providing career
for everyone, it cannot be more resilient,
development diverse,
opportunities through inclusive,
our growing organization, promoting
diligently to mitigate the impact to sustainable business practices, creating shareholder value or helping further
done in isolation but instead and and
literacy sustainable
education initiativesfuture. We look
in the communities we proudly call home,
our stores so that we were able to Serving Others is not just a mission—it’s a cornerstone of our culture and a
in collaboration with teams forward to working together
filter through which business decisions are made. as
meet our customers’ needs.
committed to improving a team and in partnership
In the following pages, I invite you to learn more with
about how the Dollar General team lives our
All of this was made possible by outcomes and opportunities for our communities
mission and
every day. As with everything vendors
we do, we to
plan to continually review and refine our efforts
the dedication and commitment others. Whether through job Serve
so Others.
we can achieve our operating priorities while
continuing to be responsible stewards of Dollar
of our team members. To creation, talent development and
Sincerely,
General’s legacy.
show our gratitude, we paid training, diversity and inclusion
Sincerely,
approximately $167 million efforts, sustainable business
in appreciation bonuses and practices, education and literacy
awarded $5.25 million to our grants, value creation for our
Todd Vasos
Employee Assistance Foundation. shareholders or providing quality Todd J. Vasos
Chief Executive Officer
In a time when the health and products at affordable prices, we Chief Executive Officer
SERVING OTHERS REPORT 3
3
CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
Dollar General at a Glance
As of January 29, 2021
17,000+ 157,000+ 46 $33.7B
Stores Employees States in Sales
26 #
112 $ Top 25
Distribution Rank on the Low-priced Forbes Top 25
Centers Fortune 500 List Product Model responders to the
16 traditional distribution centers ~22% of products COVID-19 pandemic
9 fresh distribution centers priced at $1 or less
1 combination distribution center
4
CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
Our History
The first Dollar General The Dollar General Literacy
retail store opens. Turner’s Foundation is established. Founded
Department Store in on the belief that literacy opens
Springfield, Kentucky doors for personal, professional
converted to the first Dollar and economic growth, the Dollar
General store in June 1955. General Literacy Foundation
The store’s business model provides financial support for
was simple. No item would libraries, schools and nonprofits to
cost more than $1. Soon, Dollar 1976 Dollar General further literacy and education both
General stores began sprouting
up across southern Kentucky.
DG exceeds annual sales
of $100 million.
nationally and in the communities
that Dollar General serves.
1955 1976 1993
1939 1968 1989
J.L. Turner and Cal Turner, Sr. open J.L. Dollar General Dollar General celebrates
Turner and Son Wholesale in Scottsville, becomes its 50th anniversary. Fifty
Kentucky. Each invested $5,000 and a public company. years after the founding
became partners in a wholesale, dry- of J.L. Turner and Son
goods business to serve retailers that Wholesale, Dollar General
survived the Great Depression. operated approximately
+$100M 1,300 stores in 23 states,
employing more than
7,000 individuals.
5
CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
Dollar General named to
Fortune magazine’s 2020
list of World’s Most Admired
Companies. Training magazine
Dollar General relocates In April, Dollar General opens names Dollar General’s
its corporate office its 10,000th store in Merced, training and development
to Goodlettsville, California. In November, Dollar program to its top spot for the
Tennessee. General is named to the S&P 500®. second consecutive year.
2000 2012 2020
1999 2009 2019
Dollar General recognized Dollar General becomes a Dollar General’s training
on the Fortune 500 list public company (again). and development program
for the first time. After the company went named #1 worldwide
private for two years, by Training magazine.
Dollar General returned Dollar General celebrates
to the NYSE under its the grand opening of its
current stock symbol DG. 16,000th store in Panama
City, Florida.
6
CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
Our Mission
Dollar General’s mission is captured in two simple, but powerful words—Serving Others.
This mission drives our continuous pursuit of ways to better serve our customers, communities,
employees, shareholders and vendors. As we strive for operational excellence, our mission is
at the heart of everything we do.
Serving Others
FOR CUSTOMERS
Convenience, Quality & Great Prices
FOR EMPLOYEES
Respect & Opportunity
FOR SHAREHOLDERS
A Superior Return
FOR COMMUNITIES
A Better Life
7
CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
Who We Are
We are today’s neighborhood general store, serving the needs of our
customers by providing convenience, value & service - Every day!
OUR VISION OUR VALUES OPERATING PRIORITIES
We believe in: Driving profitable
sales growth
• Demonstrating integrity
in everything we do.
We must act with a Capturing growth
sense of urgency and • Providing employees the opportunities
speed to market. opportunity for growth and
development in a friendly
Enhancing our position
and fun environment.
Our people We will as a low cost operator
are a capture • Delivering results through
competitive growth
hard work and a shared Investing in our
advantage. opportunities.
Our customers commitment to excellence. diverse teams
are at the center through development,
of all we do. • Celebrating success and
recognizing the contribution empowerment
of others. & inclusion
We will be Low cost • Owning our actions and
the leader in drives out decisions and learning
our channel. high cost.
from our mistakes.
• Respecting the dignity and
differences of others.
8
CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
COVID-19 Update
The events of the past year have highlighted the essential
role that Dollar General plays in the communities we
serve, as our customers have relied on us more than ever
to provide them with the products they need at prices
they can afford in a convenient easy-to-shop small box
environment.
Amid the COVID-19 pandemic, vaccination and our exempt team
the health and safety of our members with additional labor
employees, customers and local hours to accommodate for their
communities has remained time away from the store.
our top priority. In response
Additional Safety Measures
to the pandemic, we have
We continue to provide PPE
implemented several proactive
to employees, including facial
and preventative measures, which
coverings, and have added
are outlined below, and we are
hand sanitizer for employee and
proud to have remained open to
customer use. Additionally, in all
serve our neighbors as one of
traditional distribution centers and
America’s essential retailers.
cold storage facilities, temperature TOP TOP
HOW WE ARE SERVING OTHERS:
Vaccination Support for
scan checks are administered for
each employee prior to each shift.
Social Distancing
25
Forbes magazine
45
The Harris Poll’s Essential
Employees Social distancing measures recognized Dollar General 100 Ranking listed Dollar
We are working to remove are being exercised across our among its top 25 corporate General in its top 45
barriers by providing our frontline, organization and are designed responders to the companies that played an
hourly store team members with to help keep individuals six feet COVID-19 pandemic. essential role during the
COVID-19 crisis.
a one-time payment equivalent apart. In stores, floor spacing
of four hours of regular pay after markers and more than 40,000
receiving a completed COVID-19 plexiglass register barriers have
9CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
been installed throughout the Employee Bonuses
chain. Distribution and cold Dollar General awarded
storage facilities also have approximately $167 million
implemented traffic flow pattern in appreciation bonuses to
Serving Others indicators alongside additional
distancing measures in common
eligible employees in our stores,
distribution centers and private
During the Pandemic areas such as restrooms, locker
rooms and break rooms.
fleet networks during our 2020
fiscal year. These bonuses
HELPING KEEP CUSTOMERS AND EMPLOYEES SAFE demonstrate our gratitude to
Enhanced Cleaning Protocols
the team members who allowed
From stores and distribution
us to serve our customers and
centers to the Dollar General
Senior Hours 40,000+ Private Fleet and corporate
communities during a very
challenging year.
ONE OF THE FIRST TO IMPLEMENT TOTAL NUMBER OF offices, we have implemented
SENIOR HOURS AT A RETAIL OR PLEXIGLASS SHIELDS INSTALLED enhanced cleaning protocols as Increased Telehealth Services
GROCERY STORE AT CHECKOUT REGISTERS part of our daily operations. For employees not enrolled in
Dollar General medical plans,
Paid Sick Leave
Four Hours ~17,000+ By entering their worksite,
we provided an additional
opportunity to enroll in a
EQUIVALENT PAY GIVEN TO NUMBER OF STORES employees are confirming that
telehealth program, which
HOURLY FRONTLINE EMPLOYEES WHERE DG ADDED they are COVID symptom free,
provides affordable healthcare
WHO RECEIVE A COMPLETE PICKUP CAPABILITIES have not been in direct contact
options to employees without
COVID VACCINATION with someone known to have
As of fiscal year-end physically visiting a healthcare
tested positive for COVID and
provider’s office. We are also
are not awaiting the results of
currently waiving all telehealth co-
a COVID test. Employees who
pays for employees covered under
are experiencing fever or other
Dollar General’s medical plans.
symptoms of the virus are asked
to stay home. Also, employees
impacted by COVID-19, including
those who must remain at home
due to their own diagnosis, to
care for an immediate family
or household member or while
awaiting test results based on
their own health symptoms, are
paid for regularly scheduled
hours during those times.
10CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
Senior Hour Ongoing Communication
We were one of the first to We continue to remind
announce senior hours, which employees on a regular basis of
are designed to allow some of the steps to help avoid or contain
the most vulnerable customers the spread of the COVID-19 virus
the ability to shop during the as well as steps they should take
first hour that stores are open. if they experience symptoms
By encouraging customers to or have direct contact with
plan their shopping trips around someone who tested positive
these hours, this allows seniors to for the virus. Protocols have
purchase the essential items they also been established on how
need in less busy and crowded employees should respond to
shopping periods. both direct and indirect exposure
to the virus.
Contactless Shopping
We are enhancing customers’ Dollar General Employee
shopping experiences by offering Assistance Foundation Donation
Dollar General Pickup and In 2020, Dollar General made
increasing the number of stores a $5.25 million donation to SERV ING OU R E MP LOY E E S
with self-checkout. Dollar General the Dollar General Employee
$5.25M ~$167M
Pickup is now available for most Assistance Foundation, which
stores and allows customers provides financial assistance
to shop from the convenience to employees during specified TO SUPPORT EMPLOYEES TOTAL OF EMPLOYEE
of the Dollar General app on times of need. AMOUNT AWARDED TO OUR APPRECIATION BONUSES
their smart phone. After placing EMPLOYEE ASSISTANCE FOUNDATION AWARDED
an order, customers receive TO SUPPORT EMPLOYEES
a communication when their DURING TIMES OF NEED
order is ready. Once at the store,
customers can grab their order SERVI NG OU R COMMU NIT IE S
from the in-store Dollar General
$2M ~75%
Pickup shelves and be on their
way. Dollar General Pickup also
allows customers to take full PROVIDED BY THE DOLLAR GENERAL TOTAL NUMBER OF AMERICANS
advantage of the Dollar General LITERACY FOUNDATION TO SAVE WITHIN APPROXIMATELY
Digital Coupons for instant THE CHILDREN’S COVID-19 RESPONSE 5 MILES OF A DOLLAR GENERAL
savings. EFFORTS IN RURAL AMERICA
As of fiscal year-end
11CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
Serving Our
Customers
12CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
OUR CUSTOMERS
Serving Our Customers
Founded in 1939, Dollar General is a leader in the value sector providing customers with everyday
products at great prices in a convenient, easy-to-shop store. Whether preparing a meal for a special
occasion, helping your child with a school project, welcoming a pet into the family or planning a
night to pamper yourself, Dollar General stores are filled with the essentials that help make life’s
every day moments possible at prices you can afford with name brands you trust.
INCREASING ACCESS TO OUR STORES AND HEALTHIER FOODS
Convenience and ease of shopping are important to our customers.
Each potential store location is carefully evaluated to ensure Dollar
General is able to deliver a convenient, affordable retail option to Healthy meals are easy at Dollar
the local community. Our store locations reflect our belief that all General. In partnership with a
individuals deserve access to everyday essentials at affordable prices. nutritionist, we crafted Better for
Dollar General stores can be found in urban, suburban and rural You recipes that can be made from
communities, including many communities where traditional grocers ingredients purchased at Dollar
and other retailers have chosen not to operate. General. For more information on
these delicious and nutritious recipes,
Each of Dollar General’s 17,000+ locations provide customers with
visit the “Inspiration” section of our
components of a healthy diet such as milk, eggs, bread, cheese,
website under “DG Easy Meals” and
frozen and canned fruits and vegetables, grains, lean proteins and
“Better for You.”
more. Additionally, we have a number of healthier initiatives in
select stores including a “Better for You” assortment that provides
a broader selection of healthier food options, including our Good &
Smart private brand. As of fiscal year-end 2020, these offerings were Geaux Get Healthy
available in nearly 7,300 stores. Dollar General partnered with Baton Rouge Mayor-President, Sharon Weston
Broome, and her “Geaux Get Healthy” initiative to provide healthier food
options, including produce, to residents of the Baton Rouge community.
The curated produce assortment offers fresh fruits and vegetables including
In fiscal year 2020, Dollar General opened
lettuce, tomatoes, onions, apples, strawberries, potatoes, sweet potatoes,
OUR 1,000 new stores, remodeled 1,670, relocated 110 and
46
lemons, limes, salad mixes and more.
TH expanded into the state of Washington - marking our
46th state. We are excited to extend our geographic
STATE footprint, broaden workforce opportunities and serve
more communities across the country in 2021.
13CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
OUR CUSTOMERS
PRODUCT SAFETY & QUALITY electrical (when required) and vendor partners to use safer
We are committed to providing chemical tests on the company’s alternatives to chemicals listed in
our customers and their families direct import products based the company’s current Restricted
with safe, quality products at on applicable federal, state Substances List. Further, Dollar
great values. Our commitment and local regulatory and General expects all formulated
includes sourcing products from safety requirements, as well as private brand suppliers within
vendors and manufacturers that additional company expectations. cleaning, beauty and personal
are expected to meet or exceed Product labels are also evaluated care to register their products’
applicable local, state and federal based on regulatory requirements formulations with the UL
safety requirements, including and for appropriate use and WERCSmart® system on at least
those relating to product safety instructions. an annual basis and to use safer
ingredients and components, alternatives to chemicals listed
Dollar General’s product safety
labeling and packaging, as well in the company’s Restricted
and regulatory compliance
as the environment. Additionally, Substances List. Through this
program, which is outlined
vendors are required to adhere process, Dollar General expects
Dollar General’s Current in more detail below, applies
to our Code of Business to gain additional insight into
Restricted Substances List: to direct imports and certain
Conduct and Ethics as well the chemical composition of
Formaldehyde, Toluene, domestically purchased private
as our workplace conditions these products and to evaluate
Nonylphenol Ethoxylates, label items. We develop product
expectations. the expansion of the Restricted
Butylparaben, Propylparaben, safety and compliance testing
Substances list to other chemicals.
Trichloroethylene, Triclocarban We primarily look to the protocols in collaboration with
If a product is determined to
and Triclosan applicable regulatory standards some of the largest testing
contain a substance included
when evaluating the safety and companies in the world including
on the restricted substances list,
quality of our products. We are Intertek, UL (Underwriters
Dollar General will partner with
By December 2022, the company always interested in ways to Laboratories) and MTS (Modern
the vendor to ensure that the
expects to have worked with improve the safety and quality Testing Services).
chemical is removed and replaced.
its vendors to eliminate those of the items we carry, taking
Chemical Policy and Restricted
chemicals on the company’s into account our ability to
Chemical List
current Restricted Substance List continue to offer those items at
In 2019, Dollar General announced
from all private label formulated the affordable prices that our
a policy designed to go beyond
products sold at Dollar General, customers need and expect.
what is required by law and
within home, cleaning, beauty and
Safety and Regulatory Testing take additional steps to reduce
personal care departments.
Dollar General partners with or eliminate certain chemicals
global independent, third-party of concern from our products.
testing laboratories to conduct Through this policy, Dollar
various physical, mechanical, General urges its suppliers and
14CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
OUR CUSTOMERS
Product Testing Product safety investigations
To ensure product safety and are initiated when the company
compliance, all direct import receives information regarding a
and certain private label items potential product safety or quality
undergo periodic laboratory issue. The scope of any such
testing, the frequency of which investigation will be determined
depends on, among other things, on a case-by-case basis, taking
the risk profile of the product or into account, among other things,
product category. This testing is the nature of the potential issue
performed by independent, third- and any alleged harm caused by
party laboratories on randomly the product. Not every report
selected items. or investigation of a potential
product safety or quality issue will Dollar General expects all
Product Recalls
result in a product recall. If it is formulated private brand
Product recalls (whether direct
determined that a product recall is suppliers within cleaning, beauty
import, private label or national
necessary, the Global Compliance and personal care to register their
brand) and product safety
team is notified and coordinates products’ formulations with the
inquiries and investigations are
the removal of product from UL WERCSmart® system on at
coordinated by the company’s
inventory. least an annual basis and to use
Global Compliance department
safer alternatives to chemicals
with the support of a cross-
listed in the company’s Restricted
functional team of individuals
Substances List.
from other areas of the company.
A product recall may be instituted
either as the result of an internal
product safety investigation or
based upon direction provided
to the company by a government
agency or a vendor.
15CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
Serving Our
Employees
16CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
OUR EMPLOYEES
Serving Our Employees
Driving our success is our fourth operating priority – Investing in our diverse teams
through development, empowerment and inclusion, which is the foundation for our
talent philosophy of “Attract, Develop and Retain.”
Our employees are the heart Whether our employees are grow with us. We have helped plans; flexible spending accounts;
of our company and bring our entering the workforce for the thousands of employees from our disability insurance; 401(k)
mission of Serving Others to life. first time or looking for ways stores, distribution centers, store plan; paid vacation; employee
To that end, we work hard each to build their careers, as one of support center and international assistance program (including
day to create opportunities for the fastest-growing retailers in sourcing offices develop their access to legal assistance and
our diverse teams to grow and America, we have a variety of careers and advance within the counseling); healthy lifestyle and
thrive in an inclusive environment. opportunities for individuals to company. As of fiscal year-end disease management programs;
2020, approximately 73% of discounts for products and
store managers and thousands services; parental leave; adoption
of employees, including several assistance; and service award
members of our senior leadership recognition. Eligibility and benefit
~3 team, have been promoted levels are based upon, among
million
from within the organization. other things, an individual’s part-
Additionally, we have a strong time or full-time status, position
Training hours pathway to success for entry- and tenure. To help measure the
in 2020 level workers where on average, a success of our overall employee
part-time sales associate can be compensation and benefits
promoted to an assistant manager programs, we monitor employee
in just one year. applicant flow and staffing levels
~73% ATTRACTING TALENT
across the organization, as well
PROMOTED We seek to provide market-
as employee turnover, particularly
FROM WITHIN competitive compensation and
at the store manager level.
Approximately 73% of store benefits packages that attract
managers and thousands of talent to the organization and
employees have been promoted then retain and incentivize
from within the organization performance. We offer a
broad range of benefits,
including: medical, prescription,
As of fiscal year-end
telemedicine, dental and vision
17CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
OUR EMPLOYEES
LEADERSHIP DEVELOPMENT ACE Program
& TRAINING Dollar General partnered with the
American Council on Education’s
In 2020, under the guidance of
(ACE) Learning Evaluations team
our award-winning training team,
to evaluate our company’s Store
we invested nearly three million
Manager Training program for
training hours in employees at all
possible college credit. After ACE’s
levels of the company to promote
rigorous, third-party evaluation and
education and development.
recommendations, Dollar General
The portfolio of training store managers who complete
opportunities is designed to help the company’s Store Manager
employees gain new skills and Training program are eligible to
experiences to grow their career, receive up to nine semester credit TOP
providing a blueprint for moving
people from an entry-level job to a
business leader. Whether through
hours toward the completion of an
undergraduate degree.
DG University Alliance
100
In February 2021, Dollar General
store or district manager trainings,
The DG University Alliance is was inducted into Training magazine’s
classes at our training centers or prestigious Top 100 Hall of Fame,
a university partnership and
programs for our executive leaders, following two consecutive years
scholarship program allowing
development opportunities are as the magazine’s top training
employees and their family
available to individuals through-out and development program and 10
members to access higher consecutive years among
their employment journey.
education. In 2020, Dollar General its Top 100 list.
In addition to instructor-led expanded the participating
trainings, Dollar General also colleges and universities from 8
has a robust library of online to more than 200, providing all
educational content that is employees, regardless of part-time
200+
available for employees to or full-time status, with even more
access at times that are opportunities to receive tuition
convenient for them. benefits, including discounts, fee
waivers and deferred billing. The Colleges and universities participate
Education Credits and Scholarship in the DG University Alliance,
Alliance also offers a scholarship
Dollar General’s partnership providing all employees with
program, which is available to
with the American Council on even more opportunities to
full-time employees who meet receive tuition benefits.
Education and its University
applicable criteria.
Alliance helps employees earn
their college degree.
18CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
OUR EMPLOYEES
RETAINING AND ENGAGING TALENT DIVERSITY & INCLUSION
Employee engagement is integral to maintaining our culture. To Our core values include respecting the dignity and differences of others,
help us facilitate increased awareness regarding company operating and Dollar General is committed to fostering an inclusive environment
priorities and strategies, we host regular employee town hall meetings. where every employee feels valued, respected, supported and is able to
Additionally, we conduct employee feedback surveys throughout the bring their authentic self to work every day.
enterprise, focusing on employee engagement, manager effectiveness,
In 2020, we convened a cross-functional and diverse team of employees
recognition and belonging. Knowledge gained from the surveys is
to help ensure that our beliefs and convictions are accurately expressed
used to help improve the employee experience, foster inclusivity,
in our operating priorities. In addition, we hosted listening sessions
empower employees and create action plans for further engagement.
with employees from all levels and functional areas to learn how we
This frequent feedback also helps in driving recognition programs for
can foster a more inclusive environment. These efforts led to a fine-
all levels and allows us to deliver tools for recognition throughout the
tuning of our fourth operating priority from “Investing in Our People as
enterprise. Our focus on employee engagement helped us achieve
a Competitive Advantage” to “Investing in Our Diverse Teams through
79% overall employee satisfaction during fiscal year 2020.
Development, Empowerment & Inclusion.”
Employee Resource Groups
Engagement Scores for fiscal year 20201
Dollar General has five Employee
Overall Company Engagement 73% Resource Groups (ERGs). Each
group is organized around a
Overall Company Recognition 74%
chosen commonality and works
Overall Company Overall Employee Satisfaction 79% to leverage differences, promote
awareness and build a more
Overall Company Participation 79%
inclusive culture consistent with
Overall Company Manager Effectiveness 85% Dollar General’s mission and core
Overall Company Belonging 86% values. Each employee-led group
has an executive sponsor who
helps the ERG leadership create
programming to support employee
79% 86%
career development, communities
and culture. Our ERGs further focus
on opportunities to satisfy customer
Overall Overall
needs and provide a stronger tie
Employee Company
to the communities in which our
Satisfaction Belonging
employees live and serve.
1 Results represent the weighted combined average of scores from our store, distribution center and store support
center employees.
19CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
OUR EMPLOYEES
Military Support
Dollar General proudly supports all those who have served and continue In addition to offering exclusive discounts to military
to serve our country. We offer exclusive discounts to active military, families, Dollar General is proud to partner with
veterans and their immediate family members. Additionally, our United Through Reading to help ensure children do
military employee resource group, SERVE, provides opportunities for not have to miss bedtime stories because their family
our employees who are members of military families to connect and member is away on military service.
volunteer. We are also a founding partner of the Paychecks for Patriots
program, which supports service members’ transition to civilian life
through meaningful employment opportunities.
LGBTQ+
Dollar General was recently named to Professional Woman’s Magazine
(PWM) Best of the Best Employers List for Top LGBTQ+ Friendly
Companies. For more than 21 years, PWM has polled hundreds of
Fortune 1000 companies for its Best of the Best evaluations to bring the
latest information and guidance to readers as well as encourage active
outreach and diversity policies among corporations and government
agencies. In 2020, Dollar General received a score of 90 (out of a
possible 100) on the Corporate Equality Index (CEI). Started in 2002,
the CEI is a national benchmarking report on businesses that gauges
policies and practices as they relate to LGBTQ+ workplace equality. The
CEI is administered by the Human Rights Campaign Foundation.
Named Professional Woman’s
Magazine Best of the Best Employers
List for LGBTQ+ Friendly Companies
20CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
OUR EMPLOYEES
WORKFORCE COMPOSITION
As of December 31, 2020
Officer Group Management Non-Management
The following data includes all employees The following data includes all employees The following data includes all full-time and
at the Vice President level and above. at the manager level and above, with part-time non-management employees
the exception of Dollar General’s Officer based in the United States.
Group and employees based outside of
the United States.
38% 71% 67%
Gender Gender Gender
Diversity Diversity Diversity
14% 24% 36%
Ethnicity Ethnicity Ethnicity
68%
of our total workforce
is female
21CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
OUR EMPLOYEES
SOCIAL JUSTICE
In 2020, we pledged $5 million to support organizations that are
working to accelerate racial and social justice.
Funding includes a multi-year commitment to support the Equal
Justice Initiative’s work to address criminal justice reform and
challenge racial and economic injustice through education and
awareness. The Atlanta-based Operation Hope will receive $1 million
to support its efforts to advance financial dignity and inclusion
through financial literacy training and coaching programs. INROADS
will receive $1 million to support internship and education programs
for ethnically diverse students across the country.
In addition to supporting nonprofits in their efforts to foster more
inclusive communities, Dollar General’s AAERG published “Active
Allyship at Dollar General: Navigating the Steps Forward”. The guide
is a resource to help employees understand ways they can play an
active role in creating a more welcoming and inclusive environment.
22CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
Serving Our
Communities
23CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
OUR COMMUNITIES
Serving Our Communities LITERACY AND EDUCATION To support adult learners and
For more than 27 years, the Dollar the nonprofits serving them,
Investing in the communities we call home is an integral
General Literacy Foundation we partnered with ProLiteracy
part of our mission of Serving Others. In fiscal year 2020, (DGLF) has been investing in to launch the Mobile Learning
Dollar General and its Foundations invested more than education programs across the Fund. The fund is designed to
$30 million in charitable efforts that focus on nourishing country. In fiscal year 2020, the increase access to new learning
Foundation awarded more than opportunities for adults by
the mind and body through education, kindness and $16.1 million in grants to programs providing adult literacy program
pediatric cancer care. impacting more than 1.4 million providers with digital educational
students. More than 1,800 schools, materials to help learners with
nonprofit organizations and upskilling in math, literacy and
libraries across the 46 states in technology via engaging mobile
$30M+
which Dollar General operates solutions.
received grants to help strengthen
We are also partnering with the
IN CHARITABLE EFFORTS
and enhance literacy programs,
American Indian College Fund
provide access to educational
to extend access to programming
materials and technology, and
for adults working towards their
give teachers the tools and
$16.1M+ 1,800+ support they need to better
high school equivalency on
Tribal Colleges and Universities
Awarded in grants Schools, nonprofits and serve students. While this is
to literacy programs libraries across 46 states
campuses.
not a comprehensive list, some
impacting more than received grants to help partnership highlights from 2020
1.4 million students strengthen and enhance are provided below.
in fiscal year 2020. literacy programs.
Creating Access to Education
In the spring of 2020 when
education was disrupted by
nationwide school closures,
the Dollar General Literacy
Foundation awarded $2 million to
Save the Children to help more
than 300,000 vulnerable children
in rural communities have access
to literacy and learning materials
and nutrition.
24CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
OUR COMMUNITIES
Building Home Libraries In partnership with the American
In partnership with Reading Is Libraries Association (ALA)
Fundamental in 2020, Dollar and the American Association
General provided over 128,000 of School Librarians (AASL),
books to more than 38,000
children. The free books were
we created the Beyond Words
program to provide funding to
128,000
Books have been provided to more than
distributed three times a year school libraries devastated by
38,000 children in 2020 through our
to elementary-aged students in disaster to help replace print, partnership with Reading Is Fundamental.
communities where Dollar General digital and technology resources.
distribution centers are located. Since 2007, the Foundation has
Supporting Story Times
In partnership with United
awarded more than $2.6 million
to public school library rebuilding
10,000
Students received backpacks and school
efforts. In 2020, we helped
Through Reading, we help supplies in response to disasters through our
schools impacted by wildfires,
ensure children do not have sponsorship of the Kids in Need Foundation.
flooding and tornadoes across
to miss the special bonding
the county.
moments of story time because
their family member is away on When disasters impact a school,
military service. To help make this students and teachers’ supplies
possible, we provide support to are often loss. As a national
facilitate video-recorded stories sponsor of the Kids in Need
and reading libraries on military Foundation’s Second Responder
bases and ships around the Program, we provide backpacks,
globe so that men and women school supplies and teacher
in the Armed Forces can record supplies to schools, students and
themselves reading a story to teachers impacted by disaster.
their loved ones. During 2020, we provided
supplies to 560 teachers,
Rebuilding Libraries and
13 schools and over 10,000
Providing Basic School Supplies
students.
During moments when natural
disasters or fires impact schools,
the Dollar General Literacy
Foundation partners with
nonprofit organizations to aid in
the recovery efforts.
25CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
OUR COMMUNITIES
DG Kindness
Every day, we hear stories of our Dollar General family leading with
compassion and kindness.
To celebrate these moments of kindness, we launched the DG Kindness
campaign in the fall of 2020. Each week, we celebrate one employee’s
story by providing a $1,000 donation to a charity in their hometown to
amplify their act of kindness. At 2020 fiscal year-end, we had celebrated
17 weeks of spreading kindness.
Children’s Health
In 2020, Dollar General proudly celebrated 15-years of partnership and
support of St. Jude Children’s Research Hospital. Through corporate
gifts and an annual in-store Thanks & Giving campaign, we have raised
more than $26 million to support the life-saving work at St. Jude.
In addition to financial support, Dollar General helps make the holidays
a little brighter by hosting Santa’s Workshop on St. Jude’s campus for
patients and their siblings. Attendees receive free toys and gift cards,
participate in fun crafts, enjoy snacks, laugh and receive a visit from
a few special friends. For patients who are not able to attend, special
gift bags full of toys and holiday cheer are created and delivered to
their rooms.
Employee Assistance Foundation
During 2020, Dollar General donated $5.25 million to the Dollar General
DG Kindness
Employee Assistance Foundation to provide much needed hope and
Training Store Manager, Heidi B’s heart was heavy after seeing the
help to our employees during difficult times. Whether an employee
impact of the devastating wildfires on her hometown community in
loses a loved-one or has damage to their home by natural disaster or
Oregon. She began helping community members sift through the
fire, for over 15-years the Foundation has been there to offer support. destruction to look for family treasures that may have survived the fire.
Funding for the Foundation comes from the company, board members She also purchased 150 angels and placed them in front of homes that
and our coworkers joining together to serve the Dollar General family. were destroyed to try to bring hope to those who lost everything. For
Heidi’s compassion and commitment to Serving Others, we recognized
her as part of our DG Kindness campaign and donated to the Santiam
Canyon Wildfire Relief Fund in her honor.
26CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
Serving the
Environment
27CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
THE ENVIRONMENT
Serving the Environment
Dollar General is committed to ensuring the communities we call home remain vibrant for
generations to come. Part of being a good neighbor means being a responsible steward of our
natural resources and working to reduce our environmental footprint through sustainable and
business-friendly practices. As we grow our business, we continuously explore ways to further
reduce and limit our impact on the planet while balancing operational and customer needs.
Our Footprint Energy Conservation
We believe that Serving Others includes helping to ensure the health In 2016, we initiated a broad-based LED light installation effort in
of our planet and mitigating our potential impact on climate change. our stores with the intent of reducing energy costs and reducing the
Whether through Environmental Protection Agency certifications for impact of our carbon footprint. As of fiscal year-end, 99 percent of our
our fleet, using energy efficient lighting and machines or repurposing stores’ interior lighting has been converted to LED lighting resulting
products to avoid landfill impact, we are working to create positive in a reduction in energy usage in our stores by 19 percent since the
change. implementation began. Additionally, where permitted under our lease
terms, we have converted all exterior lighting to LED.
KEY METRICS
To help regulate energy consumption, energy management systems
are included in nearly all Dollar General stores. Additionally, all new
Carbon Footprint1 2019 2020
and replacement HVAC systems include variable frequency drives to
Enterprise Square Footage 138,342,000 146,256,000 help generate further energy efficiencies, resulting in approximately
seven percent energy use reduction in stores where they are installed,
GHG Emissions which at fiscal year-end represented 21 percent of our chain.
347,831 408,623
Scope 1 (MT CO2e)
In addition to lighting and HVAC efforts, as part of our cooler door
GHG Emissions
1,114,435 1,214,410 expansion, we are actively replacing inefficient and aged coolers and
Scope 2 (MT CO2e)
freezers with ENERGY STAR® rated units, which are approximately
GHG Emissions 23% more efficient.
1,462,266 1,623,033
Scope 1 and 2 Total (MT CO2e)
Finally, we have installed solar panels in a limited number of stores in
Carbon Intensity
(MT CO2e /1000 SQ FT)
10.6 11.1 Illinois and Missouri.
Energy Consumed
2,372,941,107 2,582,574,879
Purchased Electricity (kWh)
1 Square footage is for fiscal year-end; all other metrics for calendar year-end.
Notes: Enterprise square footage includes retail and distribution centers. Total square footage increased by 5.7%. Scope 1 includes stationary (natural gas, propane, heating oil, and backhaul generators) and mobile (corporate jet,
fleet vehicles, owned trucking, owned refrigeration trailers, and leased trucking) emissions. Scope 2 includes purchased electricity. Purchased electricity reduction can be attributed to efforts such as: increased use of more energy
efficient lighting, energy management systems, VFD HVAC systems and the installation of ENERGY STAR® coolers.
28CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
THE ENVIRONMENT
RECYCLING
(calendar year 2020)
274,098 1,459 2,358 2.2 Million
Tons of Cardboard Tons of Paper Tons of Plastic Pallets
5 1.9 487 722,285
Million Billion Million Barrels Oil Saved
Trees Saved Gallons Water Saved kWh Energy Saved
29CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
THE ENVIRONMENT
Pallets
Our distribution centers are engaged in ensuring our pallet program
has minimal impact on the environment. The pallet pool is a mix
of vendor owned pallets that are leased for use and whitewood
pallets that we own once received. We return all leased pallets to the
appropriate vendor after use, and we reuse the whitewood pallets. If
any whitewood pallets are unsafe for reuse and cannot be repaired,
they are recycled for other end goods.
Tertiary Packaging
Mixed Paper Recycling
To increase efficiencies for our distribution centers and reduce our
All unsold or outdated magazines, newspapers, greeting cards, and
environmental impact, we conducted an economic order quantity
store paperwork (to the extent that it does not contain confidential
analysis that allowed us to reduce the number of partial pallets
or personal information) are returned to our distribution centers to be
received. The decrease in partial pallets allowed us to reduce inbound
recycled. Since 2010, we have recycled over 32,588 tons of mixed paper.
deliveries, employee touches and the number of pallets being utilized
for product. This effort resulted in a reduction of more than 807,000
pallets in fiscal year 2020 as compared to the previous fiscal year. Network Services
We work to recycle and e-cycle our outdated network equipment,
all according to EPA guidelines.
Plastics
Dollar General initiated a plastic film recycling program in which
distribution centers collect and bale plastic film returned from our Store Support Center
store teams along with the plastic wrap used at the distribution facility Ongoing recycling efforts at our Store Support Center include the
to help protect pallets. From the start of this program in February following items: cardboard, loose paper, plastic bottles, aluminum
2012 through December 31, 2020, Dollar General has recycled and cans, shrink wrap, light bulbs, batteries, cooking oil, toner cartridges,
repurposed more than 16,576 tons of plastic film. scrap metal, obsolete fixtures, broken furniture and motors.
Cardboard Backhauling New Store Growth and Store Remodels
The company implemented a cardboard backhauling initiative more Partnering with preferred developers, Dollar General has implemented
than a decade ago. This initiative calls for cardboard shipped to our a virtually-zero waste construction program to reduce the excess
stores to be broken down and returned to our distribution centers for materials that remain after a store is built. As we remodel and optimize
recycling or sale to paper mills. More than 2.2 million tons of cardboard store formats to better serve our customers, we work to minimize
have been recycled since the beginning of this program in 2008, which waste through the recycling efforts listed above and through metal
is equivalent to nearly 39 million trees saved. recycling programs.
30CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
THE ENVIRONMENT
REDUCING FOOD WASTE
In the United States over 42 million people face food insecurity. To help
reduce food waste and support local food distribution efforts, Dollar
General distribution centers and stores in select markets are partnering
with Feeding America®. During 2020, we donated more than 2.4 million
pounds of food to local food banks which is equivalent to over 1.7
million meals.
The Power of Spilled Milk
In 2020, Dollar General partnered with Rubicon to divert 12,348 tons of
expired dairy waste from landfill. Of this total, 8,174 tons were sent to
regional producers of animal feed, where they were used as high-quality
DISTRIBUTION CENTERS
additives to feed farm animals. Compared to a landfilling scenario, we
Our state-of-the-art distribution center facilities are strategically located
estimate the reuse of this waste as animal feed resulted in the avoidance
to enable us to efficiently serve our stores needs while operating in
of 1,152 tons of CO2e or the equivalent of 249 passenger vehicles driven
an environmentally mindful way. Through strategic placement of our
for one year.
facilities, we are able to create economic empowerment opportunities
In addition to the animal feed program, 4,174 tons of expired dairy for the local workforce and communities while also positioning our
waste was sent to a farm to process through an anaerobic digester. transportation team for more efficient hauls and reduced stem miles.
Through this specialized process a Pennsylvania farm close to our
We are mindful of conservation efforts in operating our facilities.
Pottsville, Pennsylvania distribution center is able to turn the milk into
Among the energy-saving building practices utilized in our
natural gas, which is then used to generate electricity. The electricity
distribution centers are:
created from the milk at the distribution center is not only able to
power the approximately 1,200 acre farm, but superfluous power is • LED lighting with occupancy sensors
sold to the local electric company. • Electric-powered material handling machines (e.g., forklifts)
• Controllable light levels
• White TPO roof membranes that reflect sunlight and help with
heating/cooling energy usage
2.4 • Advanced warehouse cooling systems
Million
• Energy-efficient dock doors, seals and windows
• Increase the use of variable frequency drives (VFD) for climate
pounds of food donated control equipment and conveyors
to local food banks
Additionally, we use adiabatic condensers in 38% of our distribution
centers. These condensers offer energy efficient solutions by using
water only as needed based on ambient temperatures and system
demand and do not require chemicals to treat the water.
31CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
THE ENVIRONMENT
TRANSPORTATION
We work diligently to create the 90%
most efficient routing systems of our total fleet carriers are
for our truck deliveries to ensure SmartWay™ certified.
the lowest mileage between
best practices and enhance the
our distribution centers and
sustainability of their supply
stores. This helps reduce the
chains.
total number of miles driven
and subsequent diesel fuel Our global supply chain utilizes
consumption. Since 2018, we have various methods of transportation
reduced our stem miles from our to deliver goods throughout, our
traditional distribution centers by network. To optimize routing,
2.7%. Over the past year, we have reduce cost and lower fuel
reduced stem miles from our fresh consumption, we rely on single
distribution centers by 5.6%. and intermodal networks of
transportation utilizing traditional
To help further improve freight
truckloads, rail and ocean liners.
transportation efficiency, in 2020,
In fiscal year 2020, 19% of our
100% of our outbound fleet
total cartons were shipped using
carriers and 89% of our inbound
intermodal transportation.
fleet carriers were certified by
the Environmental Protection In alignment with the International
Agency’s SmartWay™ program. Maritime Organization’s new
Through data collection, the standards, Dollar General and its
program helps companies ocean carriers migrated to a low- DG Kindness
benchmark and adjust to industry sulfur fuel in 2020. Martin Robbles began his career with Dollar General’s Private
Fleet five years ago. When school was interrupted by COVID-19,
his daughter, Khloe, learned that some of her classmates did not
Dollar General’s Private Fleet have hot meals at home. The father-daughter duo sprang into
To serve our new stores opening across the U.S. each week, our private action and built a lemonade stand raising money for the San
trucking fleet continues to grow. Our private fleet is a GI Bill® certified Antonio Food Bank. For Martin and his daughter’s generosity
employer offering a competitive compensation package with the opportunity and compassion, we recognized them as part of our DG Kindness
for drivers to earn up to $90,000 a year, annual bonus opportunities and day- campaign and joined them in donating to the food bank’s efforts.
one competitive benefits eligibility. For warehouse employees interested in
pursuing this career path, we offer an internal Class A CDL training program.
In 2020, our private fleet nearly doubled in terms of number of employees
and 47% of fleet leaders were promoted internally.
32CEO Letter Company Overview COVID-19 Update Serving Others Managing Our Supply Chain Corporate Governance SASB Index
Managing Our
Supply Chain
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