Fast-growing discount retailer Dollar General has opened its first store in Mexico.
The Mi Super Dollar General store in Escobedo, Nuevo Leon, was officially announced by the retailer Friday but actually opened several weeks ago. The general store is filled with products sourced primarily from Mexico, including fresh produce, health and beauty items, cleaning supplies, pet care, beauty products and other houseware essentials. The store also includes a bakery, tortilleria and financial services area.
The retailer, in a call with analysts earlier this month, said it plans on opening 20 stores in “underserved communities” in northern Mexico by the end of this year. All of them will have the same features as the first story.
In doing so, Dollar General CEO Jeff Owen said the company will “leverage our brand awareness while extending our value and convenience proposition to a customer base that is similar to our core customer in the United States.”
Customers have responded well to the early days of Mi Super Dollar General, the retailer said. The concept was developed with a “customer-first focus” after sessions with focus groups.
“In the future, each store will be tailored to fit the wants and needs of nearby customers so they can provide for their families through a convenient shopping experience,” Gary Morales, Mi Super Dollar General’s director of operations said in a statement.
Dollar General first announced plans to expand into Mexico in December 2021.
The retailer also has a Mexico Store Support Center in San Pedro Garza Garcia.
“While the store has only been open a few short weeks, we are very encouraged by the early response from our new customers,” Owen told analysts this month. “These achievements are a testament to this team’s hard work and continued focus on execution and innovation as we continue to deliver on our mission of serving others.”
Dollar General’s international expansion comes as it is growing swiftly inside the U.S.
In January, the Goodlettsville, Tennessee-based retailer opened its 19,000th store. Since 2012, the company has opened about 1,000 new locations per year.
Earlier this month, Dollar General executives said they were disappointed with recent sales results, despite continuing to gain market share in food and beverage sales.
For the quarter ended Feb. 3, Dollar General reported same-store sales growth of 5.7%. Fourth-quarter operating profit increased 17.1%, to $993.2 million. Traffic declined and sales growth was largely driven by higher prices.