Dollar General Surpasses Milestone of 5,000 Stores Nationwide Offering Fresh Produce

Rhea-AI Summary

Dollar General (NYSE: DG) has achieved a significant milestone by offering fresh produce options in more than 5,000 stores across the country, surpassing other U.S. mass retailers or grocers. The retailer provides a curated assortment of fresh fruits and vegetables, covering approximately 80 percent of the produce categories most grocery stores traditionally provide. The company has also invested in a partnership with Shelf Engine, an AI company, to improve perishable food forecasting and ordering, supporting its meaningful produce growth journey while improving operational efficiency.

Insights

Market Research Analyst

The expansion of fresh produce offerings by Dollar General represents a strategic move to compete with traditional grocery stores by diversifying product lines and catering to consumer demand for fresh and healthy food options. This initiative can potentially draw in a new customer segment that prioritizes the availability of fresh produce when choosing a retailer. Additionally, the partnership with Shelf Engine to optimize in-stock produce levels using AI technology indicates a focus on improving supply chain efficiency and reducing waste, which can lead to better margins and inventory turnover.

From a market perspective, Dollar General's move to increase fresh produce availability in underserved areas could boost same-store sales and customer loyalty. It also aligns with a broader industry trend where discount retailers are expanding their fresh and organic product ranges to appeal to health-conscious consumers. This initiative may put pressure on competitors to enhance their fresh food offerings, potentially leading to a shift in market dynamics within the discount retail and grocery sectors.

Supply Chain Analyst

The implementation of AI technology through Dollar General's partnership with Shelf Engine is a significant development in the retail sector's approach to inventory management. By leveraging AI for perishable food forecasting and ordering, Dollar General aims to minimize overstock and out-of-stock scenarios, which are particularly costly in the fresh produce category due to limited shelf life. This technology-driven approach should enhance customer satisfaction by providing fresher products and may reduce operational costs through improved demand forecasting and inventory management.

The logistical challenges of expanding fresh produce distribution to over 5,000 stores, especially in areas with smaller populations, are non-trivial. Efficient distribution channels and inventory management are critical to maintaining produce quality and availability. The success of this initiative will largely depend on Dollar General's ability to effectively manage its supply chain to ensure consistent and timely delivery of fresh produce to its stores.

Corporate Social Responsibility Expert

Dollar General's commitment to providing fresh produce in communities with limited access to traditional grocery stores has significant social implications. By increasing the availability of affordable and nutritious food options, the company is addressing the issue of food deserts and contributing to the health and well-being of the communities it serves. This aligns with growing consumer expectations for businesses to have a positive social impact.

The collaboration with food banks and the pledge to contribute millions of meals through Feeding America showcases Dollar General's dedication to corporate social responsibility (CSR) and food security. These efforts not only enhance the company's reputation but also resonate with socially conscious consumers and investors. The long-term benefits of these CSR initiatives may include strengthened community relationships and enhanced brand loyalty, which can indirectly contribute to the company's financial performance.

With more individual points of produce distribution than any other U.S. mass retailer or grocer, the Company provides access to fresh fruits and vegetables in thousands of communities

GOODLETTSVILLE, Tenn.--(BUSINESS WIRE)-- Dollar General (NYSE: DG) has surpassed its latest milestone, now offering fresh produce options in more than 5,000 stores across the country. With this achievement, the retailer has more individual points of produce distribution than any other U.S. mass retailer or grocer. DG stores that carry produce provide consumers with a curated assortment of fresh fruits and vegetables, including tomatoes, onions, apples, strawberries, potatoes, sweet potatoes, lemons, limes, salad mixes, and more.

More than 5,000 Dollar General stores carry the top 20 produce items typically sold in traditional grocery stores, which cover approximately 80 percent of the produce categories most grocery stores traditionally provide. (Photo: Business Wire)

First announced in the Company’s Q4 2022 earnings last March, DG has continued to make strides toward reaching this milestone and now, more than 5,000 DG stores also carry the top 20 items typically sold in traditional grocery stores which cover approximately 80 percent of the produce categories most grocery stores traditionally provide.

“We are constantly looking for ways to better serve our customers and one of our top priorities is to ensure the communities we call home have access to fresh, affordable, and convenient food options,” said Emily Taylor, executive vice president and chief merchandising officer at Dollar General. “We have exceeded our goal of having 5,000 total stores with fresh produce by January 2024. We’re proud to leverage our footprint to meet the need for healthy food options in more communities than any other retailer across the U.S.”

The Company has also recently invested in a partnership with Shelf Engine, an AI company providing retailers with technology to improve perishable food forecasting and ordering. The partnership will evolve Dollar General’s process to optimize in-stock produce levels, helping automate the ordering process while providing customers with the freshest food possible. As this tool continues to roll out, it will support the Company on its meaningful produce growth journey while improving operational efficiency.

Approximately 80 percent of Dollar General stores serve communities of 20,000 or fewer people, and residents in these communities often rely on the retailer for their everyday essentials including components of a nutritious meal. Every Dollar General provides customers with healthy food options such as milk, eggs, bread, cheese, frozen and canned vegetables, grains, lean proteins and more, including Dollar General’s exclusive Good & Smart® private brand.

As part of the Company’s commitment to provide convenient and affordable access to foods, in 2023 it announced its “Food First” initiative, which includes the customer feedback-driven expansion of its private label brand, Clover Valley, welcoming over 100 new items to shelves including a wide range of entrees, sides, sauces, condiments, snacks and more at affordable price points.

Additionally, Dollar General partners with local and national nonprofit organizations, including food banks, as part of its on-going efforts to help alleviate food insecurity. DG’s operational partnership with Feeding America, the nation’s largest hunger-relief organization, provides in-kind food donations from stores and distribution centers across the country with a goal to contribute up to 20 million meals each year. To date, Dollar General has donated more than 23 million meals and over $3 million to Feeding America.

Explore local stories of how Dollar General has brought fresh produce to underserved communities here. To learn more about Dollar General's produce and healthy food options, including recipes using ingredients sourced from DG stores, visit https://www.dollargeneral.com/c/food-beverage. Find a store with produce near you by filtering for fresh produce on the online store locator.

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 3, 2023, the company’s 19,726 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. Learn more at DollarGeneral.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240130572693/en/

Dollar General Media Relations

dgpr@dollargeneral.com

Source: Dollar General

FAQ

How many Dollar General stores offer fresh produce options?

Dollar General offers fresh produce options in more than 5,000 stores across the country.

What is the ticker symbol for Dollar General?

The ticker symbol for Dollar General is DG.

What percentage of produce categories do Dollar General stores cover?

Dollar General stores cover approximately 80 percent of the produce categories most grocery stores traditionally provide.

What partnership has Dollar General invested in to improve perishable food forecasting and ordering?

Dollar General has invested in a partnership with Shelf Engine, an AI company, to improve perishable food forecasting and ordering.

What is Dollar General's 'Food First' initiative?

The 'Food First' initiative includes the customer feedback-driven expansion of Dollar General's private label brand, Clover Valley, welcoming over 100 new items to shelves, including a wide range of entrees, sides, sauces, condiments, snacks, and more at affordable price points.