Dollar General Rolls Out More Fresh Products
Wider selection, private brands and frosty coolers update the stores.
Sep 03, 2019
GOODLETTSVILLE, Tenn.—Thanks to the recent construction of new distribution facilities, Dollar General’s self-distributed DG Fresh initiative is now in 3,500 stores and should be in nearly a third of its stores, or 5,000 locations, by the end of the year, reports Supermarket News.
“We are very excited about the early results we are seeing from this initiative, as well as the long-term potential benefits it can deliver for our customers and our business,” said Todd Vasos, CEO, Dollar General CEO.
The DG Fresh rollout began in January to improve margins and close the gap between Dollar General’s dry goods and its fresh products. “We have historically seen about a 10-point gap in our in-stock levels between our dry goods and our fresh products,” Vasos said. “We believe we can close the gap with DG Fresh, which is supported by results from the early phases of our rollout.”
Since Dollar General began shipping merchandise from its first DG Fresh distribution facility in Pottsville, Pa., it has added distribution facilities in Clayton, N.C., and Atlanta, and a fourth one opens in Westville, Ind., in a few weeks, Vasos said. DG Fresh gives customers a wider selection of both national and private brands and has enhanced the chain’s better-for-you offerings, he said.
“In total, we are now self-distributing to more than 3,500 stores,” said Vasos. That’s an increase of about 2,700 stores from the end of the first quarter. When the Indiana facility opens, Vasos expects DG Fresh to meet its previously announced target of delivering to 5,000 stores by the end of 2019.
The company also is expanding coolers in new and remodeled stores and plans to have more than 40,000 cooler doors by year end. The chain also is offering digital initiatives to drive traffic and increase basket sized. Digital customers check out with baskets twice as large as the company average, Vasos said.
The company recently introduced a new “shopping list” feature to the Dollar General mobile app that lets customers build and save their shopping lists and helps them save money via digital coupon push notifications and comparable private-brand product suggestions.
In addition, DG Go mobile checkout is available in more than 250 stores. It will be incorporated into the overall Dollar General mobile app in the third quarter to enhance the customer’s shopping experience. As of Aug. 2, Dollar General operated 15,836 stores in 44 states.
Branding Consumers Facilities management Product availability Merchandising New product introduction Home meal replacement Manufacture brands Menu segments Sustainability Snacking Supplies
