Dollar General's $320M Volume Surge Climbs to 383rd in Market Activity Amid Store Remodeling Drive and High-Volume Trading Strategy's 166.71% Backtested Gains

On July 30, 2025, Dollar General (DG) closed with a 1.23% decline despite a 47.1% surge in trading volume to $320 million, ranking 383rd in market activity. The retailer is accelerating its store remodeling strategy, having completed 1,227 renovations in Q1 2025 under two initiatives: Project Elevate (668 stores) and Project Renovate (559 stores). These upgrades aim to boost productivity per square foot through merchandising enhancements and inventory optimization, with expected annualized sales gains of 3-8% depending on the project type.

The remodeling program prioritizes cost efficiency over new store construction, targeting 4,885 total real estate projects this year. By focusing on 20% of its store base annually, the company maintains continuous operational improvements without overextending capital. Enhanced shelf availability and standardized store conditions are already driving operational gains, while reduced construction costs compared to expansion make the strategy particularly compelling in the current market environment.

Analysts note DG's stock has outperformed its sector over six months, rising 50.4% versus a 2.4% industry decline. However, forward-looking estimates suggest 4.4% sales growth but a 2.5% earnings contraction for FY2025. The stock trades at a 17.6 P/E ratio, below the industry average of 31.65, but at a premium to Target's valuation while trading at a discount to Costco.

A backtested trading strategy of holding the top 500 volume stocks daily generated 166.71% returns from 2022 to present, outpacing benchmark performance by 137.53% excess return. The approach achieved a 31.89% compound annual growth rate with no recorded drawdowns and a Sharpe ratio of 1.14, highlighting its risk-adjusted effectiveness over the test period.