Fresh food fast and food for less is the top of mind when it comes to buying food for home consumption. There are two companies that are driving down the cost of fresh food and saving customers both time and money while opening new stores, lots of them. Those two companies are Amazon Fresh, and Dollar General who is planning on to open 1,050 stores, remodel 1,750 stores for fresh food in 2021.
Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes that the number one threat to retail grocery stores top line sales and bottom-line profits moving forward is not Aldi, Lidl, WinCo or Amazon Fresh it is Dollar General.
Recently Dollar General announced that they are planning significant store expansion in 2021 as it continues to roll out its DG Fresh food offerings as well as other merchandise initiatives.
Jeff Owen, Dollar General's chief operating officer stated, "Our portfolio of high-return real estate projects continues to be a top priority for capital allocation as we look to continue delivering long-term shareholder value. With a robust pipeline in place and plans to execute an average of nearly eight real estate projects per day in fiscal year 2021." The expansion push also includes increased focus on food.
So, during the first three quarters of 2020, Dollar General added approximately 49,000 cooler doors across its store base. It expects to install more than 60,000 cooler doors by the end of the year, most of which will be in its higher capacity coolers.
Battle for Share of Stomach
Vasos continued "We plan and continue to believe DG Fresh could provide a potential path forward to expanding our produce offering to even more stores in the future," .. "In total, we were self-distributing to more than 13,000 stores from eight DG Fresh facilities at the end of Q3. We expect to capture benefits from this initiative in more than 14,000 stores from 10 facilities by the end of this year, and are well on track to complete our initial rollout across the chain in 2021."
The simple fact is the Dollar store sector simply walked away with the center of the store legacy CPG profits and now they are taking aim at fresh food, fruit, bread, mild, eggs, meat, everyone can see the customer migration continuing for Dollar General except for legacy grocery stores. I guess they will just sit back and continue doing what they have always done and doing it in the same way. What are you doing to grow sales?
Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday that tomorrow? Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may have the clue you need to propel your continued success.