Exhibit 99.1

Investor Contact:
Kiley Fleming
(615) 855-5525

DOLLAR GENERAL REPORTS INCREASED AUGUST SALES

GOODLETTSVILLE,  Tenn. - September 6, 2001 - Dollar General  Corporation  (NYSE:
DG) today  reported  total retail sales for the  four-week  fiscal  period ended
August 31, 2001,  equaled  $393.3  million  compared with $341.5 million for the
four-week period ended August 25, 2000, an increase of 15.2 percent.  Due to the
Company's 53-week fiscal year in 2000, the Company's fiscal and calendar periods
in 2001 do not  coincide.  For the  four-week  calendar  period ended August 31,
2001,  total sales  increased  17.6 percent and same-store  sales  increased 6.7
percent  compared  with a 1.6  percent  increase  in  same-store  sales  for the
four-week period ended September 1, 2000.

For the 30-week  fiscal  period ended August 31, 2001,  Dollar  General's  total
retail  sales  increased  19.7 percent to $2.8 billion from $2.4 billion for the
30-week  period  ended August 25, 2000.  For the 30-week  calendar  period ended
August 31,  2001,  total  sales  increased  19.5  percent and  same-store  sales
increased 7.3 percent  compared with a 0.8 percent  increase in same-store sales
for the 30-week period ended September 1, 2000.

Sales Outlook:

For the five-week fiscal period of September ending October 5, 2001, the Company
expects total sales to increase 18-20 percent  compared with total sales for the
five-week  period ended September 29, 2000. For the five-week  calendar  period,
same-store  sales are  expected to  increase  5-7  percent  compared  with a 0.7
percent  increase in same-store  sales for the five-week period ended October 6,
2000. September sales results will be released on Thursday, October 11, 2001.

For the third quarter ending November 2, 2001,  total company sales are expected
to increase  17-19  percent  compared  with total  sales for the  quarter  ended
October 27,  2000.  For the 13-week  calendar  period  ending  November 2, 2001,
same-store  sales are  expected to  increase  5-7  percent  compared  with a 0.5
percent  increase in same-store  sales for the 13-week  period ended November 3,
2000. For the quarter,  the Company expects to open 175-225 new stores and close
5-10 stores.  For the full year, the Company  expects to open 600-700 new stores
and close 50-60 stores.

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 5,300 neighborhood stores in 27 states.


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.  The
factors that may result in actual results  differing  from such  forward-looking
information  include,  but are not limited to: the Company's ability to maintain
adequate  liquidity  through  its cash  resources  and  credit  facilities;  the
Company's  ability to comply with the terms of the Company's  credit  facilities
(or obtain  waivers for  non-compliance),  including  with respect to the timely
delivery of the  Company's  financial  statements;  general  transportation  and
distribution  delays or  interruptions;  inventory risks due to shifts in market
demand;  changes in product mix;  interruptions in suppliers'  businesses;  fuel
price and interest rate fluctuations; temporary changes in demand due to weather
patterns; delays associated with building, opening and operating new stores; the
results of the Company's on-going  restatement and audit process; and the impact
of the litigation and any regulatory  proceedings  related to such restatements.
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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