When you open your 20,000th 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: [email protected] or visit us on our social media sites by clicking the
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