C-stores and Restaurants Look Out Dollar General Going Grocerant

Time starved, price conscious consumers will soon be welcoming a new entrant into the Ready-2-Eat and Heat-N-Eat fresh prepared food niche.  Dollar General announced this week that they will roll out a new prototype for all its stores in 2016.

Dollar General CEO Todd Vasos announced during its 2015 fiscal second-quarter earnings call. That the  new store type will offer speedier checkouts, a greater focus on perishables and health and beauty, and a more customer-friendly shopping experience.

Vasos Stated "The consumer will be able to and have faster, more convenient checkout, an attribute that is a high priority for our core consumer,  We have value engineered the design to be capital efficient and easier to operate for our store teams."

The goal of the prototype is to emphasize perishables and help moms find quick meal solutions or fill-in items, Dollar General will expand cooler penetration across store bases. This was prompted by research that shows a basket with a perishable item is nearly 50-percent higher than the chain average.

"This is a big opportunity that we know how to capitalize on, as we have already increased the cooler count on average by just over 50 percent since 2008," Vasos noted. Overall, consumables made up 75.7 percent of Dollar General's revenues last year, up from 63 percent a decade ago.

Vasos continued "We are well positioned to capitalize on this trend given our brand offerings and price relevancy," Our ongoing affordability initiative will be front and center with the new fresh approach."

Restaurants and C-stores have been building sales momentum within the Ready-2-Eat and Heat-N-Eat fresh prepared food niche. Now that Dollar General has entered the mix the price, service, quality equilibrium will be resetting once again.  Are you prepared? Do you need outside eyes?

Are you trapped doing what you have always done and doing it the same way?  Interested in learning how Foodservice Solutions 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit:  www.FoodserviceSolutions.us for more information