Variety store chain Dollar General has appointed its former CEO Todd Vasos as the new CEO, effective Thursday. He succeeds Jeff Owen following his ousting from the company on the same day.

Vasos will remain as a member of the board, a role he has held since 2015. He joined the company in 2008 as executive VP, division president and chief merchandising officer. He served as CEO from June 2015 to November 2022, and retired from the firm in April.

Prior to Dollar General, he served in leadership positions with Longs Drug Stores Corporation, Phar-Mor Food and Drug Inc, and Eckerd Corporation. 

During Vasos’ seven years as CEO, Dollar General expanded its store base by approximately 7000 locations, increased annual sales revenue by more than 80 per cent, and more than doubled its market capitalization to approximately $58 billion.

Michael Calbert, chairman of Dollar General’s board of directors, said the board considered the change in leadership “necessary to restore stability and confidence”.

“Dollar General has operated from a position of strength for nearly 85 years, and the Board believes Todd is the right leader to refocus the company’s strategic direction and priorities to stabilize the business.

“Since Todd’s retirement in April, he has remained active as a member of our board and is acutely aware of the challenges facing our business and the industry more broadly.”

In August, Dollar General reported weaker-than-expected earnings and sales for the second quarter and cut its full-year guidance.

Following the announcement of the new CEO, the company further lowered its outlook, expecting net sales growth in the range of 1.5 to 2.5 per cent and earnings per share of about $7.10 to $7.60.

The company is in the midst of a major store expansion program and currently operates around 14,800 in the US and Mexico. It is on track to add 990 this calendar year.