Discount retailer Dollar General (NYSE:DG) has reached a settlement with the Department of Labor’s Occupational Safety and Health Administration (OSHA). As part of the agreement, DG will pay a $12 million penalty and implement safety improvement measures to address alleged workplace safety violations at over 20,000 U.S. stores.
Following an inspection, the regulator identified several safety hazards at the company’s stores. These included blocked emergency exits, inaccessible electrical panels, and unsafe storage practices.
Safety Improvement Measures
To address the concerns raised by the Labor Department, Dollar General has agreed to prevent blocked exits by reducing inventory and improving stocking efficiency. Further, the company will hire more managers to oversee safety and provide training to leaders and non-managers.
Additionally, Dollar General must promptly address any future safety hazards and provide proof of correction. Non-compliance will lead to additional fines of $100,000 per day, up to $500,000, and inspections by the Labor Department.
Repeated Offender
It is worth mentioning that Dollar General has been on the Labor Department’s radar since 2017. DG has already paid about $21 million in penalties to settle allegations related to blocked fire exits, excessive clutter, and other safety issues.
Furthermore, as a repeat offender, Dollar General was placed on OSHA’s list of “severe violators” in 2023.
These ongoing violations could harm the company’s reputation. Also, the potential for future fines could impact DG’s financials. Additionally, the company might face increased scrutiny from regulators due to its failure to meet proper workplace safety standards.
What Is the Price Target for DG Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating based on seven Buys, nine Holds, and one Sell assigned in the past three months. The analysts’ average price target on Dollar General stock of $149.40 implies a upside potential of 13.53%. Shares of the company have declined 1.5% in the last six months.
