Dollar General expanding store count, adding fresh produce

According to an article in Supermarket News, Dollar General plans to add 900 new locations this year and pending a successful market test, will add fresh produce to hundreds of remodeled locations.

The company has introduced "traditional plus" stores that include 34 cooler doors to merchandise an expanded perishables assortment (by year-end, the company expects to have an average of 20 cooler doors per store, up from 10 in 2012). And of the 750 traditional plus stores that are expected to be in operation by the end of the year, about 450 will carry fresh fruits and vegetables.

According to Dollar General CEO Todd Vasos, "The ability to offer produce, particularly in areas with limited grocery availability, represents an attractive growth opportunity for Dollar General in the years ahead."

The company also plans to roll out an expanded assortment of better-for-you products at select stores, with a focus on high protein and low salt options.

Dollar General sees opportunity in consumables

Dollar General cited stagnant wages relative to rising consumer prices, and negative income growth projected through 2020 for customers earning less than $50,000, as reasons for the company's plan to capture additional customers through improvements in its consumables assortment.

CEO Todd Vasos claimed earlier this year that based on current sales, Dollar General has significant growth opportunities in health and beauty, food, candy and snacks, and perishables. To that effect, the company plans to expand the health and beauty category, boost perishables offerings with more coolers per stores, expand its ready-to-eat assortment, and expand its ready-to-consume beverage and snack offerings in high-profile areas.

In order to make room for the additional products, space will typically be reduced in apparel, home and housewares, and in declining food categories like dry cereal.

Dollar General to increase sale of perishables, health and beauty products

Dollar General announced recently that the company is working on a new store prototype that will provide more fresh foods and health and beauty products. The rollout will begin in 2016 with all new stores and remodels.

CEO Todd Vasos said the new stores will have more coolers, which mean more perishables, and "perishables drive trips and basket size."

Vasos added that Dollar General also plans to expand offerings in areas like hair care, cough and cold, skin care and nail care.