Exhibit 99.1

Investor Contact:
Kiley Fleming
(615) 855-5525


DOLLAR GENERAL REVISES JANUARY SALES EXPECTATIONS AND COMMENTS ON EARNINGS
OUTLOOK FOR THE YEAR

GOODLETTSVILLE,  TN - January 22, 2001 --- Dollar General Corporation (NYSE: DG)
today  announced that it expects to report earnings of  approximately  $0.62 per
diluted share for the 53-week period ending February 2, 2001,  compared to $0.65
per diluted  share for the 52-week  period ended  January 29, 2000.  Because the
Company has adopted the Retail Federation  Reporting  Calendar,  the fiscal year
ending  February 2, 2001, will include one additional week of sales and expenses
compared with the 52-week period last year.  The Company  expects the additional
week to contribute approximately $0.01 per diluted share.

For the 52-week  period ending  January 26, 2001,  the Company now expects total
company  revenues  and  same-store  sales to increase  approximately  15% and 1%
respectively,  compared  with  the  same  period  in 1999.  Gross  profit,  as a
percentage of net sales, is expected to be down  0.40-0.45%  compared with gross
profit in 1999.  This  expectation  reflects lower than  projected  gross profit
during the fourth quarter as a result of higher shrink results,  higher markdown
expense,  and  lower  initial  mark-up  in the  period.  Management  anticipates
operating  expense,  as a  percentage  of net  sales,  to  increase  1.10%-1.15%
compared to  operating  expense as a percentage  of net sales in 1999.  Interest
expense  as a  percentage  of net sales is  expected  to  increase  0.10%-0.15%,
reflecting  higher  interest rates than the same period a year ago. The tax rate
is expected to be approximately  36.25%.  Despite operating  675-700  additional
stores, management expects total LIFO inventories to increase approximately 10%.

"We expect the  decline in gross  profit to have  resulted  from  higher  shrink
expense attributable to the aggressive resetting of our stores earlier this year
and lower initial mark-up due to additional  promotional purchases in the fourth
quarter," said Cal Turner,  Jr., Chairman and CEO. "We reiterate that our stores
are now better positioned to serve our customers."

The Company will host a conference call at 5:00 p.m. EST on Monday,  January 22,
2001  to  discuss  information   included  within  this  release.  In  order  to
participate,  please call (312)  470-7140.  The passcode for the call is "Dollar
General."  The  conference  call  will  also  be  broadcast   live,   online  at
www.dollargeneral.com.  A replay  of the  call  will be  available  for 48 hours
online or by calling (402) 998-1668.

The Company also  announced  that  month-to-date,  through the third week of the
January period,  sales are  significantly  above plan. Total sales for the month
are now  expected  to  increase  18-19% and  same-store  sales are  expected  to
increase  4-5%.  Month-to-date,  strong sales  results have been reported in the
highly  consumable  category.  Geographically,  sales  for the  month  have been
strongest in the Company's Midwestern and Northeastern market areas.




Weekly sales trends are  announced on Mondays after the market closes and can be
attained online at www.dollargeneral.com or by calling (615) 855-5529.

Dollar General  operates more than 4,889  neighborhood  stores in 25 states with
distribution centers in Florida, Kentucky,  Mississippi,  Missouri, Oklahoma and
Virginia.

This press release  contains  historical and  forward-looking  information.  The
forward-looking  statements  are made pursuant to the safe harbor  provisions of
the Private  Securities  Litigation Reform Act of 1995. The Company believes the
assumptions underlying these forward-looking statements are reasonable; however,
any of the assumptions  could be inaccurate,  and therefore,  actual results may
differ  materially from those projected in the  forward-looking  statements as a
result of  certain  risks and  uncertainties,  including,  but not  limited  to,
general transportation and distribution delays or interruptions, inventory risks
due to shifts  in market  demand,  changes  in  product  mix,  interruptions  in
suppliers'  business,  fuel price and interest rate fluctuations,  and costs and
delays associated with building,  opening and operating new distribution centers
("DCs") and stores. The Company undertakes no obligation to publicly release any
revisions to any forward-looking  statements  contained herein to reflect events
or  circumstances  occurring  after the date of this  report or to  reflect  the
occurrence of unanticipated events.

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