Dollar General looks to expand ranges

Date : 01 February 2018

Dollar General is holding an event to encourage new suppliers to apply to sell their products through its stores.

Innovation and Supplier Diversity Summit

New suppliers or those who haven't sold products to Dollar General in the last 18 months are invited to apply to sell to it. The Innovation and Supplier Diversity Summit will be held in April 2018 and will aim to link potential sellers with Dollar General buyers and category managers. The retailer is interested in a variety of categories including grocery, beauty, personal care, over the counter wellness and general merchandise. It is looking to expand the number of unique and specialised products it sells and reinforce its credentials for providing quality products at everyday low prices. To apply to attend the event, suppliers, companies and manufacturers can submit product information through an online form and if successfully chosen, will pay a $500 participation fee.

Source: IGD Research

Increasing the grocery offer

Dollar General has been steadily looking to expand its assortment of merchandise and has been increasing the range of food and grocery products sold. In 2017, it began increasing the number of fridges in many stores and expanding its fresh produce offer to additional locations. This includes its smaller stores as well as its Dollar General Plus format. Its last quarterly results saw food and grocery sales increase by 11.8%, ahead of the overall sales so this is a key growth area for the retailer.

Dollar chains continue to grow

Both Dollar General and Dollar Tree continue to open new stores, even in areas where they already have a strong presence. Dollar General has stated that it sees potential for around 25,000 stores in total. In 2018, it plans to open around 900 new stores as well as undertaking 1,000 store remodels and 100 store relocations. The dollar store format continues to perform well across the US, with both leading chains investing in rapidly expanding their estates. Each chain already operates over 14,000 stores which creates a significant presence. Adding more food and grocery products is a key way in which they are competing with grocery stores and increasing repeat visits as well as encouraging a larger basket spend.

Convenience is one of the ways in which Dollar General has been improving its competitiveness with the grocery chains, as due to its smaller store sizes, it can open stores in convenient, neighbourhood locations and flex its range to suit the catchment. Its DGX format which launched in 2017 is a great example of how it is capitalising on this and includes a large selection of food-to-go products.

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