We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Dollar General's Project Renovate and Elevate Drive Comp Sales Lift
Read MoreHide Full Article
Key Takeaways
DG targets about 6% annualized comp-sales lift from Renovate stores and 3% from Elevate locations.
Dollar General completed 1,324 Renovate and 1,422 Elevate remodels through fiscal 2026's second quarter.
DG expects about 2,000 Renovate and 2,250 Elevate projects for the year to boost established-store sales.
Dollar General Corporation (DG - Free Report) continues to enhance its overall retail network execution by making strategic capital investments in its existing store footprint. Through two core store remodel initiatives — Project Renovate and Project Elevate — the retail chain is effectively unlocking higher productivity and strong same-store sales growth across its mature store base.
Project Renovate is the company’s traditional full-remodel program, generally aimed at stores that are at least seven years removed from opening or their last major remodel. The work can include adding or replacing coolers and upgrading the location to Dollar General’s latest store format. Project Elevate targets stores that are not yet old enough for a full remodel but still offer room for improvement. Project Elevate touches as much as 80% of a store through asset upgrades, merchandising changes, product adjacency adjustments and category refreshes.
The company continues to target an annualized comparable-sales lift of about 6% for Project Renovate stores and about 3% for Project Elevate locations. Through the end of the second quarter of fiscal 2026, Dollar General had completed 1,324 Project Renovate remodels and 1,422 Project Elevate remodels.
Dollar General still expects to complete about 2,000 Renovate projects and 2,250 Elevate projects for the full year. The two programs give the retailer a targeted way to extract additional sales from established stores while refreshing the shopping experience across different portions of its mature footprint.
How Walmart and Target Compare With DG on Store Remodels
Walmart Inc. (WMT - Free Report) is also investing heavily in its physical store base, completing about 220 U.S. store remodels in the second quarter of fiscal 2027. Walmart U.S. comparable sales rose 2.6%, driven by higher transactions and unit volumes. Walmart said it continues investing in remodels and omni-enabling stores, supporting a store network that increasingly serves both in-store shoppers and e-commerce fulfillment.
Target Corporation (TGT - Free Report) is seeing a clear response to store investment, with management citing reliable guest lifts after remodels. Target has more than 100 full-store remodels underway toward roughly 130 for the year. Target’s comparable store sales increased 2.7% in the quarter. Target also said these remodels help bring its latest merchandising and experience improvements across the chain, reinforcing the role of refreshed stores in driving guest engagement.
How Does Dollar General Stack Up Against Its Industry?
Dollar General has seen its shares advance 6.4% over the past three months against the industry’s 7.6% decline.
Image Source: Zacks Investment Research
What Does Dollar General’s Current Valuation Suggest?
From a valuation standpoint, Dollar General's forward 12-month price-to-earnings ratio stands at 15.08, lower than the industry’s 26.78. The stock is also trading below its 12-month median level of 16.05.
Image Source: Zacks Investment Research
What Do Earnings Estimates Signal for Dollar General?
The Zacks Consensus Estimate for Dollar General’s earnings per share for the current and next fiscal year has increased by 48 cents and 29 cents to $7.86 and $8.35, respectively, over the past 30 days.
View the Zacks #1 Rank List
Image: Bigstock
Dollar General's Project Renovate and Elevate Drive Comp Sales Lift
Key Takeaways
Dollar General Corporation (DG - Free Report) continues to enhance its overall retail network execution by making strategic capital investments in its existing store footprint. Through two core store remodel initiatives — Project Renovate and Project Elevate — the retail chain is effectively unlocking higher productivity and strong same-store sales growth across its mature store base.
Project Renovate is the company’s traditional full-remodel program, generally aimed at stores that are at least seven years removed from opening or their last major remodel. The work can include adding or replacing coolers and upgrading the location to Dollar General’s latest store format. Project Elevate targets stores that are not yet old enough for a full remodel but still offer room for improvement. Project Elevate touches as much as 80% of a store through asset upgrades, merchandising changes, product adjacency adjustments and category refreshes.
The company continues to target an annualized comparable-sales lift of about 6% for Project Renovate stores and about 3% for Project Elevate locations. Through the end of the second quarter of fiscal 2026, Dollar General had completed 1,324 Project Renovate remodels and 1,422 Project Elevate remodels.
Dollar General still expects to complete about 2,000 Renovate projects and 2,250 Elevate projects for the full year. The two programs give the retailer a targeted way to extract additional sales from established stores while refreshing the shopping experience across different portions of its mature footprint.
How Walmart and Target Compare With DG on Store Remodels
Walmart Inc. (WMT - Free Report) is also investing heavily in its physical store base, completing about 220 U.S. store remodels in the second quarter of fiscal 2027. Walmart U.S. comparable sales rose 2.6%, driven by higher transactions and unit volumes. Walmart said it continues investing in remodels and omni-enabling stores, supporting a store network that increasingly serves both in-store shoppers and e-commerce fulfillment.
Target Corporation (TGT - Free Report) is seeing a clear response to store investment, with management citing reliable guest lifts after remodels. Target has more than 100 full-store remodels underway toward roughly 130 for the year. Target’s comparable store sales increased 2.7% in the quarter. Target also said these remodels help bring its latest merchandising and experience improvements across the chain, reinforcing the role of refreshed stores in driving guest engagement.
How Does Dollar General Stack Up Against Its Industry?
Dollar General has seen its shares advance 6.4% over the past three months against the industry’s 7.6% decline.
Image Source: Zacks Investment Research
What Does Dollar General’s Current Valuation Suggest?
From a valuation standpoint, Dollar General's forward 12-month price-to-earnings ratio stands at 15.08, lower than the industry’s 26.78. The stock is also trading below its 12-month median level of 16.05.
Image Source: Zacks Investment Research
What Do Earnings Estimates Signal for Dollar General?
The Zacks Consensus Estimate for Dollar General’s earnings per share for the current and next fiscal year has increased by 48 cents and 29 cents to $7.86 and $8.35, respectively, over the past 30 days.
Image Source: Zacks Investment Research
Dollar General currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.