Dollar General Enhances Efforts to Help Customers Stretch Budgets in the New Year

Rhea-AI Summary

Dollar General (NYSE: DG) is enhancing its private brand offerings and savings initiatives to help customers stretch their budgets. The company's private brand portfolio includes over 3,200 consumable products, with Clover Valley® being the largest brand, achieving $2.3B in retail sales for fiscal 2023. For Q1 2025, DG plans to add approximately 100 new private brand products, with more than half under the Clover Valley® name.

The company launched weekly deals on 2,000+ products through digital coupons, cash back offers, and instant savings, representing 20-25% of total in-store products. DG maintains about 2,000 items priced at $1 or less, with its Value Valley section featuring 250-300 rotating products. As of November 1, 2024, Dollar General operates 20,523 stores across various formats in the United States and Mexico.

Positive

• Clover Valley brand achieved $2.3B in retail sales in fiscal 2023
• Plans to launch 100 new private brand products in Q1 2025
• Over 50% of customer baskets contain at least one private brand item
• Weekly deals program covers 20-25% of total store products

Negative

• None.

Insights

Retail Industry Analyst

Dollar General's latest strategic moves reveal a sophisticated approach to defending and expanding its market position in an increasingly competitive discount retail space. The $2.3B in retail sales from Clover Valley® alone demonstrates the remarkable success of their private brand strategy, accounting for a significant portion of their revenue stream.

The expansion plan of approximately 100 new private brand products in Q1 2025 is particularly strategic for several reasons:

• Private labels typically carry 25-30% higher profit margins compared to national brands, potentially boosting DG's profitability
• The focus on everyday essentials like salad dressings and breakfast items targets high-frequency purchase categories
• The quality-focused messaging addresses the key concern of value-seeking consumers who can't afford product disappointment

The digital coupon initiative covering 20-25% of in-store products represents a important modernization of DG's value proposition. This digital engagement strategy serves multiple purposes:

• Drives app adoption and customer data collection
• Creates a more personalized shopping experience
• Enables more efficient promotional targeting
• Helps compete with digital-first retailers

The Value Valley section maintaining 2,000 items at $1 or less serves as a powerful traffic driver and positions DG competitively against dollar store rivals. This multi-tiered approach to value - combining private brands, digital savings and dollar items - creates a compelling value proposition for budget-conscious consumers in an inflationary environment.

Retailer Recognizes National Private Brands Month, Highlights Digital Coupons & Value Valley as Additional Savings Opportunities

GOODLETTSVILLE, Tenn.--(BUSINESS WIRE)-- As consumers seek even more ways to save on their weekly food and household essentials purchases, Dollar General (NYSE: DG) strives to fulfill that need by offering quality products shoppers expect at everyday low prices.

Clover Valley®, Dollar General's food and beverage private brand, is the retailer’s largest brand by sales and currently offers more than 600 items. (Photo: Dollar General)

DG Private Brands

Dollar General retails more than 3,200 consumable private brand products backed by the Company’s 100% satisfaction guarantee. Dollar General’s private brands offer highly consumable national brand equivalent and alternative products including Clover Valley^® food and beverages, DG Health™ over-the-counter medications, TrueLiving^® and Smart & Simple^® paper and cleaning products, Heartland Farms^® pet food and treats, Studio Selection™ personal care products and more.

DG was recently awarded a Progressive Grocer Editors’ Pick for Clover Valley^® Lobster Bites, and Private Label Manufacturers’ Association Salute to Excellence awards for Clover Valley^® Vanilla Caramel Ice Cream Cones and TrueLiving^® Heavy Duty Non-Stick Aluminum Foil.

“As shoppers seek value and quality, we continually listen to customer feedback to identify opportunity gaps,” said Emily Taylor, executive vice president and chief merchandising officer. “With more than half of our customers’ baskets having at least one private brand item, we are proud to make significant investments in our private brands, bringing even more on-trend products and pantry staples to shelves.”

New for 2025

Clover Valley^® is the retailer’s largest brand by sales, achieving more than $2.3B in retail sales for fiscal 2023, eclipsing all other brands carried at DG. Clover Valley^® currently offers more than 600 items. For Q1 2025, DG plans to add approximately 100 new private brand products, more than half of which will be under the Clover Valley^® name. New items will include honey mustard, blue cheese and thousand island salad dressings, apple cinnamon fruit and grain bars, caramel and vanilla coffee enhancer syrups, 100% white grape peach juice, sugar-free breakfast syrup, cinnamon rolls, biscuits and eight flavors of ice cream.

“Our customers can’t afford to make a mistake when shopping. They need the value that our private brands offer, but with the assurance that the products will meet or exceed their quality expectations,” said Angela Martin, vice president of consumer insights and branding. “Customers don’t want to feel like they are settling.”

Save Time. Save Money. Everyday.^®

Beyond DG’s everyday values, the Company last fall launched weekly deals on 2,000 or more products through digital coupons, cash back offers and instant savings, representing approximately 20-25% of the total products in store. The campaign educates shoppers on the DG app to surface the most savings through deal clipping capabilities and highlights DG’s brands through ‘Switch to Save’ callouts, providing customers with added opportunities to maximize their budget. Additionally, DG is highlighting its brands throughout National Private Brands Month with a DG Brands flyer, email and social media.

Though the Company evolved from its single price-point roots decades ago, DG continues to serve shoppers by offering approximately 2,000 items at $1 or less. The Value Valley section of the store, where everything is $1, features 250-300 products that regularly rotate including home cleaning, personal care, over-the-counter medications and more.

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About Dollar General Corporation

Dollar General Corporation (NYSE: DG) is proud to serve as America’s neighborhood general store. Founded in 1939, Dollar General lives its mission of Serving Others every day by providing access to affordable products and services for its customers, career opportunities for its employees, and literacy and education support for its hometown communities. As of November 1, 2024, the Company’s 20,523 Dollar General, DG Market, DGX and pOpshelf stores across the United States and Mi Súper Dollar General stores in Mexico provide everyday essentials including food, health and wellness products, cleaning and laundry supplies, self-care and beauty items, and seasonal décor from our high-quality private brands alongside many of the world’s most trusted brands such as Coca Cola, PepsiCo/Frito-Lay, General Mills, Hershey, J.M. Smucker, Kraft, Mars, Nestlé, Procter & Gamble and Unilever.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250123540343/en/

dgpr@dollargeneral.com

Source: Dollar General Corporation

FAQ

How much revenue did Dollar General's Clover Valley brand generate in 2023?

Dollar General's Clover Valley brand generated $2.3 billion in retail sales during fiscal 2023, making it the retailer's largest brand by sales.

How many new private brand products is DG launching in Q1 2025?

Dollar General plans to add approximately 100 new private brand products in Q1 2025, with more than half under the Clover Valley brand name.

What percentage of DG's store products are covered by weekly deals?

Dollar General's weekly deals program covers approximately 20-25% of total in-store products, representing 2,000 or more items.

How many private brand products does Dollar General offer?

Dollar General retails more than 3,200 consumable private brand products, all backed by the company's 100% satisfaction guarantee.

How many items does Dollar General offer at $1 or less?

Dollar General offers approximately 2,000 items priced at $1 or less, with 250-300 rotating products in their Value Valley section.