Dollar General taps Ahold US head as new CEO replacing veteran Vasos
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A view of a Dollar General store and shopping carts in Mount Rainier, Maryland, U.S., June 1, 2021. REUTERS/Erin Scott
By Juveria Tabassum
March 24 (Reuters) - Dollar General on Tuesday named Jerry "JJ" Fleeman Jr. as its new CEO, succeeding company veteran Todd Vasos, as the dollar-store chain banks on the seasoned retail executive to steady the business after several quarters of muted sales.
Fleeman is currently the CEO of the U.S. division of Ahold Delhaize after spending more than 35 years at the multinational retailer. He helmed the creation of a proprietary e-commerce platform for the company, Dollar General said.
Dollar General's shares were down about 5% in morning trading.
Fleeman, who will take over as Dollar General's top boss on January 1, must tackle the fallout on consumer spending from U.S. import tariffs and rising gas prices due to the Middle East conflict.
The announcement of a new CEO comes just days after the company forecast soft full-year sales that sent shares tumbling.
Vasos served as Dollar General's top boss for a combined 10 years from 2015, steering the company as it expanded its digital presence and delivery options.
He returned as CEO for a second term in 2023, less than a year after stepping down, to help tackle weakening consumer spending among lower- and middle-income consumers amid sticky inflation and elevated inventory levels.
"Dollar General brought back Todd Vasos out of retirement to stabilize the business, and he's largely done that. The next CEO will be less focused about a turnaround and more focused about driving consistent growth in sales and margins," said CFRA analyst Arun Sundaram.
The company's stock has risen 23% since Vasos started his second term in October 2023.
Vasos is expected to remain on the board and will serve as senior advisor through April 2, 2027, Dollar General said in a statement.
(Reporting by Juveria Tabassum and Koyena Das in Bengaluru; Editing by Devika Syamnath and Sriraj Kalluvila)
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