Dollar General Giving Store Managers $70 Million

They can start by having more than one cashier working at a time geeeeez.

(FORTUNE)Dollar General (DG, +0.75%) has apparently discovered that its lower income shoppers also want decent service and clean stores.

The retailer said on Thursday it would be giving store managers $70 million in raises in 2017 and acknowledged the pressure the raises will put on profits. Dollar General's move comes two years after other discount chains, including Walmart (WMT, -0.19%) and Target (TGT, -0.08%), increased pay in a more competitive labor market and tough retail environment that is making shoppers up and down the income spectrum far more demanding about service.

"To strengthen our position for the long term, we are making significant investments, primarily in compensation and training for our store managers given the critical role this position plays in our customer experience," Dollar General CEO Todd Vasos said in a statement.

The news comes on the heels of a marked slowdown of Dollar General's sales growth at existing stores and ahead of a continued, aggressive store expansion plan.

Kirby Gwen

Kirby Gwen

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