Dollar General is to accelerate its store opening strategy with plans for up to 1,000 new stores by 2017 as part of an initiative to drive profitable sales growth and enhance its position as a low-cost retailer.

The US retail group is set to outline its plans at an investor day today (24 March), when CEO Todd Vasos will update on key initiatives to support Dollar General's long-term strategic goals. 

The plans include opening around 900 new stores and relocating or remodelling 875 in fiscal 2016. For the following year, the company is forecasting around 1,000 new stores, and relocations or remodels of about 900 stores, in line with its growth model of 6-8% square footage growth.

"Dollar General has a powerful strategic plan that enables us to drive both the top line and bottom line to deliver strong financial returns as outlined in our growth model over the long-term," said Vasos. "With strong cash flow and an efficient capital structure, we believe that we have a compelling opportunity to invest for growth while also returning cash to shareholders through consistent share repurchases and anticipated quarterly dividends."

The main areas of discussion at the investor day are expected to centre around initiatives to drive profitable sales growth, capture growth opportunities, enhance its position as a low-cost operator, and invest in people as a competitive advantage.

In its latest fourth-quarter operating update, Dollar General revealed a strong performance with sales and earnings both up. 

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