Dollar General Corp said that Todd Vasos will step down as the discount retailer's chief executive officer and will be succeeded by long-time executive and operations head Jeffery Owen.
During Vasos' time at the helm, the company's annual revenue rose more than 80% and about 7,000 more stores were added to the retailer's footprint.
The CEO change comes at a time when decades-high inflation has hammered spending power, pushing consumers to turn frugal and shop more at discount store chains, boosting sales at companies such as Dollar General and Dollar Tree Inc.
'Growing Margin Pressures'
However, like other retailers, Tennessee-based Dollar General is facing growing margin pressures from higher supply chain costs and weaker demand for high-margin discretionary goods.
Owen, who has been with the company since 1992, has served as Dollar General's chief operating officer since August 2019, having previously lead the retailer's store operations.
Vasos, who has been Dollar General's chief executive since 2015, will step down in November and take on an advisory role until April, after which he will retire from the company.
In March of this year, the company forecast full-year sales above analysts' estimates, as higher prices of everyday essentials make more Americans frugal and turn to discount stores for their groceries and household supplies.
The discount store operator forecast full-year net sales to increase about 10%, while analysts on average expect growth of 7.5%, according to IBES data from Refinitiv.