Dollar General has reported like-for-like sales up 5.4%, with sales increasing 10.9% to $3.45bn (£2.1bn) for the first quarter ending April 29.

The retailer attributed the like-for-like sales gain to increased customer traffic and average transaction value. Adjusted operating profit increased 9% to $335m (£204.2m) and net income increased 15% to $157m (£95.7m) compared with first quarter of 2010.

The company plans to open about 625 new stores, including a $90m (£54.9m) distribution centre in Alabama, and to remodel or relocate about 550 stores in its 2011 financial year.