Is that a Dollar General or a Walmart?

The dollar store chain has begun aping some of the successful strategies of Walmart.

March 21, 2017

GOODLETTSVILLE, Tenn. – Dollar General has started to follow some of Walmart’s tactics, CNBC reports. While sales have faltered, Dollar General outlined its plans to push its business forward, including the addition of 1,000 new stores and 10,000 new hires this year.

The dollar store chain’s line of attack will include increasing pay for its managers, along with more targeted training for managers. Stores that have experienced the new training and pay bumps have produced lower employee turnover and higher sales, said CEO Todd Vasos.

Dollar General also has slashed prices on dozens of items in 17% of its locations. Those price cuts have generated better performance than the average Dollar General. The chain also has ramped up its fresh produce offerings, as it continues testing fresh fruits and vegetables at some stores.

The retailer will shrink its footprint, opening 160 small stores this year that are 6,000 square feet. In addition, Dollar General has begun a pilot of 3,600-square-foot store to grab millennial shoppers in urban areas.

Finally, the company will focus on technology. Although Dollar General hasn’t announced concrete plans in this area, Vasos said the company was eyeing ways to reach millennial shoppers, who are big digital and technology users.

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