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GOODLETTSVILLE, Tenn. -- National discount chain Dollar General Corp., whose portfolio includes a food-heavy format called Dollar General Market, yesterday reported a net loss for its third fiscal quarter ended Nov. 3, 2006 of $5.3 million, or $0.02 per share, compared with a profit of $64.4 million, or 20 cents per share, a year earlier.
The loss came as the retailer recognized pre-tax costs and charges of approximately $79.2 million relating to the elimination of its packaway inventory model and planned closings of 400 stores.
Net sales for the latest quarter were $2.21 billion, a 7.6 percent increase compared to the fiscal 2005 third quarter. Dollar General attributed the sales increase to higher sales of highly consumables and, to a lesser extent, increased sales of seasonal merchandise. The figure includes the sales from 430 net new stores and a same-store sales increase of 2.0 percent.
As part of its restructuring efforts announced last month, Dollar General changed its pack-away strategy, and will instead rely on clearance sales to get rid of unsold goods. The
Dollar General operates 8,276 neighborhood stores.