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Retailers

The Dollar Format Continues to Grow

The Lempert Report: Why does the dollar store continue to be such a formidable challenger?

Ten years ago, the industry focused on the dollar store category—some retailers even put in “dollar” sections in their supermarkets. But as the fresh format, Amazon’s take over of Whole Foods and grocerants have taken the main stage, dollar stores are being talked about less. And that’s a mistake.

The Washington Post reports that Dollar General is doing quite well when it comes to food. The company says sales rose 11% in the most recent quarter, as it beefed up its selection of frozen foods and added produce to some of its locations. It is opening about 900 new stores next year, and remodeling more than 1,000. There are over 13,000 stores in 44 states. By the end of last year, executives say 75% of Americans lived within five miles of a Dollar General.

Over the past five years, the company has expanded its snack and beverage aisles, and nearly doubled the amount of freezer space in its stores to accommodate more frozen pizzas, ice cream and other grab-and-go items. A handful of remodeled stores are also offering fresh food.

Dollar General has also added more branded products while expanding its own line of private label items. Certainly, private label is where it's at, whether at Kroger, Trader Joe’s, Aldi or Dollar General.

Dollar General was founded in 1968 and has more than $21 billion in annual revenue, while profit climbed 4% to more than $252 million in the last quarter.

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