Dollar General has brought back its former chief executive in an effort to revitalize its business. On Thursday, the discount chain announced the reinstatement of Todd Vasos as CEO, replacing Jeff Owen. Vasos had previously held the position for seven years before retiring in 2022. This leadership change is effective immediately, according to the company’s announcement. Owen’s tenure as CEO lasted less than one year.
Michael Calbert, the chair of Dollar General’s board of directors, stated, ”At this time, the Board has determined that a change in leadership is necessary to restore stability and confidence in the Company moving forward.”
Following this announcement, shares of Dollar General, which have been under pressure this year, surged in after-hours trading on Thursday.
Dollar General has experienced slowing growth since Owen took over as chief executive in November. In August, the company lowered its sales and profit projections for the year, attributing it to weaker consumer spending and increasing theft. Earlier this year, workers protested against federal safety violations and violent incidents at the chain. External economic factors may have also contributed to the discount chain’s downturn.
Wall Street appeared to lose confidence in Owen’s leadership. Earlier in the year, Dollar General workers protested unsafe working conditions at the store. The retailer’s stock has fallen nearly 60% since the beginning of this year.
Conversely, during Vasos’ seven-year tenure as CEO, Dollar General more than doubled its market capitalization. The company also expanded its store base by approximately 7,000 and increased annual sales by more than 80% during that time.
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