Dollar General is Selling a Lot of Food

 

When you open your 20,000^th store you are executing relevant brand messaging and at Dollar General were talking more and more about a lot of food according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Steve Deckard, Dollar General’s executive vice president of store operations and development, stated, “Today marks an incredible milestone in Dollar General’s history,” said. “From our first general store to today’s 20,000th store opening, our mission to serve others and help customers stretch their budget remains strong. We believe each store provides a positive impact in our hometowns through convenient access to affordable essentials, career growth opportunities for employees, and the ability for local nonprofits, schools, and libraries to advance through Dollar General Literacy Foundation grants.

“On behalf of the DG leadership team, I would like to share my gratitude to the entire DG family for its ongoing commitment to our customers and communities in helping us reach this milestone.”

 

The milestone grand opening began at 9 a.m., and after the celebratory ribbon cutting shoppers received a complimentary tote bag filled with product samples from vendors and were served refreshments from Dollar General private brand Clover Valley.

Dollar General also awarded $20,000 to support educational and tutoring programs with a $10,000 donation each to Alicia Salinas Public Library and to the Boys & Girls Club of Alice.

Dollar General, is one of the dominant players in the dollar store market, has experienced significant growth. Let’s delve into the role of food in this expansion:

1.       Sales Composition:

o    In 2018, food, beverages, and other household consumable goods constituted 78% of Dollar General’s sales¹.

o    The retailer’s focus on food items has contributed to its financial success.

2.       Target Communities:

o    Dollar stores, including Dollar General, strategically target communities with limited grocery options. These typically include:

§  Low-income neighborhoods

§  Rural areas

§  Communities of color

o    Dollar General’s approach is to saturate these areas with stores, often placing them within a five-minute drive of residents¹.

3.       SNAP Sales:

o    Since the 2008 recession, Supplemental Nutrition Assistance Program (SNAP) sales have been a core component of dollar stores’ expansion strategy.

o    Dollar General’s customers primarily reside in households earning less than $49,900, with a significant focus on those reliant on government assistance¹.

4.       Fresh and Frozen Food Business:

o    Dollar General’s sales soared to $33.7 billion in 2023, a 16% increase from the previous year.

o    Its net income rose significantly, partially fueled by its fresh and frozen food business²³.

5.       Health Disparities:

o    Dollar stores’ prevalence in low-income neighborhoods and communities of color may exacerbate existing diet-related health disparities.

o    Individuals with better access to supermarkets tend to have healthier diets and lower obesity rates¹.

The fact is, Dollar General’s strategic focus on food, especially in underserved areas, has played a pivotal role in its remarkable growth.

Don’t over reach. Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® 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 us on our social media sites by clicking the following links: Facebook,  LinkedIn, or Twitter