Foodservice Solutions® Grocerant Guru®, Steven Johnson has since 1991 has been touting the success the dollar store sector has had cherry picking food products from grocery stores drive top line sales and bottom line profits.
Once again it was the Wall Street Journal (WSJ) that first reported on outstanding growing driving the success of Dollar General. The team at Foodservice Solutions® has since 1991 reported that food, fresh food, and mix and match meal components all are contributing to the continued growth of the dollar store sector.
Dollar General’s growth consist proves that success does leave clues and with 14,000 stores. I guess the clues are in your back yard. Did you know that Dollar General has yielded more than double the profit of Macy’s on less revenue during its most recent fiscal year according to the WSJ. Did you know that Dollar General $22 billion market value eclipses the largest U.S. grocery chain, Kroger Co., which has five times the revenue according the WSJ?
Dollar General CEO Chief Executive Todd Vasos told the WSJ that “While many large retailers are closing locations, Dollar General executives said they planned to build thousands more stores, mostly in small communities that have otherwise shown few signs of the U.S. economic recovery.”
Why is Dollar General’s laughing at legacy grocery stores? First they have been cherry picking CPG products from the shelf of grocery stores and selling them for less and the grocery sector has denied that they were a competitor. Foodservice Solutions® Grocerant Guru® said “that denial is how Dollar General was able to grow to 14,000 stores. It’s the same denial that allowed grocery stores today to be out numbered 29 to 1 by restaurants in the United States. There is a battle for a larger Share of Stomach and grocery stores are simply on the track.”
Regular readers of this blog know that consumers are dynamic not static. Food manufactures, retailers including grocery stores, convenience stores, restaurants all need to be dynamic not static as well. We ask does your brand have customer relevance? Who are your competitors and what are they doing better than you? Why? Remember the customer is dynamic are you capitulating year over year customer counts, sales, or products to your next competitor?
Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday that tomorrow? Visit www.FoodserviceSolutions.us for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may the clue you need to propel your continued success.