Dollar General is turning to a new strategy to push its budget-conscious shoppers to spend more at stores and attract wealthier customers hunting for bargains by expanding into home furnishings, kitchenware and party supplies.
Dollar General (DG) has become a dominant force in retail by offering everyday items at rock-bottom prices, often in remote areas of the country. More than three-quarters of Dollar General (DG)’s $25 billion in annual sales come from its “consumables” division: low-margin food, cleaning and household supplies and personal care products.
But Dollar General’s reliance on selling cheap consumables has pinched its profit. So the company is introducing a new lineup of higher-margin merchandise.