Comparison of Dollar General's financial performance with that of the Dollar familyDollar General has had good financial results since its founding in 1955. During its first 10 years of existence, Dollar General has grown to 255 stores with annual sales of nearly $26 million. In 2002, annual sales were $6.1 billion and there were 6,300 stores operating in 27 states. Changes in strategy as well as major acquisitions have allowed Dollar General to continue to perform well financially over the years. Even despite major accounting errors in 2001, Dollar General continued to increase sales. With Dollar General's initiative and success, the door was open for others to thrive in the high-value retail industry. Family Dollar is a company that has managed to take the concept of Dollar General and use it for its own success. Family Dollar is considered Dollar General's main competitor. They were able to expand more quickly geographically than Dollar General, with stores in 41 states. Financially, both companies performed well. Although the number of stores a company can own does not always equate to financial success, it is usually a sign that the company is doing well. During the 1998-2002 period, Dollar General opened 2,371 new stores, compared to 1,599 for Family Dollars. Based on this number alone, you might think that Dollar General is performing better financially. During the 2000-2001 period, Dollar General and Family Dollar both increased their net sales by nearly 17 percent. However, Dollar General increased its net income by $70,642 to $207,513. The increases of nearly 193 percent...... middle of paper ......pa a careful eye on competitors. Since dollar stores compete with stores like Wal-Mart and large supermarkets, it is essential not to lose potential customers to these stores. He must maintain a stable customer base by continuing to do what has been done in the past. Focus on the same demographics as before. In order to build stakeholder trust and improve the company's credibility, David must understand their needs and wants and make decisions based on these needs. He will have to compromise where necessary and deliver bad news honestly and quickly. The key is to involve and communicate. “The need of stakeholders to know that their needs are taken into account, that their concerns are understood and that their contribution is valued.."