Dive Brief:

• Dollar General Thursday reported net fourth quarter income was $355 million, up from $322 million the same quarter a year before. Q4 net sales increased 9.9% to $4.94 billion, up from $4.49 billion the same quarter the year before. Same-store stores were up 4.9%, thanks to increased traffic and better transaction amount, the company said. The retailer sold more candy and snacks, tobacco products, perishables, and health care-related products.

• Profits fell a bit, in large part because of increased sales of lower-product margins like tobacco and food, and lower sales of higher-margin items, which was attributed to lower inventories due to the West Coast port dispute. The retailer forecast full-year earnings below expectations and said it plans to open some 730 stores this year. 

• The retailer also announced the retirement of EVP and CFO David Tehle effective July 1. The company is searching for his replacement.

Dive Insight:

Dollar General has apparently emerged from the bruising dollar-store wars — the company put in a couple of bids for Family Dollar last year — a loser. But it’s out today with a fairly rosy picture. Look for a different kind of dollar war to heat up in coming months, as the consequences of that merger begin to be felt, and as Wal-Mart Stores and Target open more stores in urban areas in more direct competition with many dollar stores, which are often closer to towns than in or near malls.

“In 2014, momentum built in our business as we moved through the year, marking our twenty-fifth year of consecutive same-store sales growth. We are pleased with our fourth quarter results which reflect accelerating same-store sales and we intend to capitalize on that momentum as we move into 2015,” chairman and CEO Rick Dreiling said in a statement.