• Dhruv Grewal
  • Michael Levy
  • Podcast
  • Videos
  • Digital
  • Newsletters

Grewal Levy Marketing News

Grewal Levy Marketing News

Tag Archives: dollar general

Dollar General Will Keep Selling (Some) Groceries and Other Goods for $1

18 Tuesday Oct 2022

Posted by grewallevymarketingnews in Chapter 15: Strategic Pricing Concepts, Chapter 17: Retailing and Multichannel Marketing

≈ Leave a comment

Tags

dollar general, Retailing, Strategic Pricing

There aren’t a lot of grocery bargains to be had these days—unless you’re shopping at Dollar General. While competitor Dollar Tree has raised the price of many of its goods to $1.25, Dollar General is committed to keeping lots of items at just one buck, and even expanding its $1 offerings, while also expanding its grocery offerings. This decision and dedication reflect Dollar General’s recognition that its consistently low price offerings are counted on by “core customers” whose incomes are less than $40,000 per year, and who run out of cash in the last week of most months.

These customers are visiting stores more often, though they make fewer purchases during each visit, likely signaling their budgetary constraints. The stores are also attracting new, newly budget-conscious customers who are seeking less expensive groceries, as inflation is otherwise driving food prices up, and up, and up.

Currently, about 20 percent of Dollar General’s merchandise is selling for $1. The retail chain is working toward offering even more products at this price. It also is bolstering the fresh, refrigerated, and frozen foods that make up its DG Fresh initiative. The company is now self-distributing refrigerated and frozen foods across its 18,000-plus stores, and it plans to have fresh produce in 3,000 stores by year’s end, in an effort to compete with traditional supermarkets instead of convenience stores. In support of this initiative, Dollar General plans to install more than 65,000 refrigerator cooler doors this year.

It’s good for customers’ bottom line, and Dollar General’s, too. A second quarter report showed that sales had increased 9 percent to $9.4 billion, and same-store sales rose 4.6 percent. An updated full-year sales prediction indicates that full-year sales will increase about 11 percent, up from the previous estimate of 10 percent.

Discussion Questions:

  1. Why would Dollar General not raise its prices, even while its competitors are doing so?
  2. Is it good or bad for business, for Dollar General not to raise prices?
  3. Could Dollar General compete with traditional supermarkets? How should it go about doing so?

Source: Matthew Stern, “Dollar General Plans to Expand Its Selection of $1 Items,” RetailWire, September 16, 2022; Heather Lalley, “Dollar General’s $1 Groceries Are Here to Stay,” CSP, September 14, 2022; Nathaniel Meyersohn, “Why Dollar Tree’s Price Hike to $1.25 Could Be ‘One of the Worst Decisions in Retail History’,” CNN, December 8, 2021; Nathaniel Meyersohn, “Rising Prices Are Pushing Shoppers to Dollar Stores,” CNN, June 8, 2022; Jon Springer, “Dollar General Plans to Self-Distribute Fresh, Frozen Foods,” CSP, March 18, 2019; Sam Silverstein, “Dollar General Bulks up on Perishables in Q4 as Overall Comps Wilt,” Grocery Dive, March 18, 2022; Marianne Wilson, “Dollar General Posts Strong Q2, Upbeat Guidance,” Progressive Grocer, August 26, 2022

Gallery

Dollar General Employee Goes Viral on TikTok, Gets Fired, Starts a Movement

23 Thursday Jun 2022

Posted by grewallevymarketingnews in Chapter 17: Retailing and Multichannel Marketing

≈ Leave a comment

Tags

dollar general, Retailing, TikTok

This gallery contains 1 photo.

Mary Gundel was a celebrated Dollar General manager, at a store near Tampa. She’d received a letter from headquarters telling …

Continue reading →

Gallery

A Dollar + A Dollar: Does a Merger Equal More or Less than It Promises?

27 Monday Oct 2014

Posted by Grewal Levy Marketing in Chapter 15: Strategic Pricing Concepts, Chapter 17: Retailing and Multichannel Marketing

≈ Leave a comment

Tags

dollar general, family dollar, Retailing, Strategic Pricing

This gallery contains 2 photos.

When Dollar General offered to merge with Family Dollar, the monetary values involved were a lot higher than what customers …

Continue reading →

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Blog Stats

  • 285,079 views

Archived Articles by Chapter

  • Chapter 01: Overview of Marketing (74)
  • Chapter 02: Developing Marketing Strategies (131)
  • Chapter 03: Social and Mobile Marketing (153)
  • Chapter 04: Conscious Marketing, Corporate Social Responsibility, and Ethics (147)
  • Chapter 05: Analyzing the Marketing Environment (216)
  • Chapter 06: Consumer Behavior (173)
  • Chapter 07: Business-to-Business Marketing (83)
  • Chapter 08: Global Marketing (114)
  • Chapter 09: Segmentation, Targeting and Positioning (146)
  • Chapter 10: Marketing Research (97)
  • Chapter 11: Product Branding and Packaging Decisions (203)
  • Chapter 12: Developing New Products (178)
  • Chapter 13: Services: The Intangible Product (143)
  • Chapter 14: Pricing Concepts for Establishing Value (94)
  • Chapter 15: Strategic Pricing Concepts (91)
  • Chapter 16: Supply Chain Management (107)
  • Chapter 17: Retailing and Multichannel Marketing (202)
  • Chapter 18: Integrated Marketing Communications (161)
  • Chapter 19: Advertising, Public Relations and Sales Promotions (187)
  • Chapter 20: Personal Selling and Sales Management (55)
  • Marketing Tidbits (32)
  • Uncategorized (3)

Tags

advertising Amazon apple B2B Marketing branding China coca cola Conscious Marketing consumer behavior COVID-19 customer service data Developing New Products Disney ethics Facebook fashion food global global marketing Google + green health india Integrated Marketing Communication integrated marketing communications luxury Macy's marketing marketing enivronment Marketing Enviornment Marketing Environment Marketing Ethics Marketing Research marketing strategies Marketing Strategy Marketing Tidbit mcdonalds mobile mobile commerce Mobile Marketing Multichannel Marketing netflix New Product Development Nike Overview of Marketing p&g Packaging Positioning pricing Pricing Concepts Private label Product Branding Public Relations rebranding repositioning retailers Retailing sales management segmentation services Social and Mobile Marketing social media Starbucks Strategic Pricing supply chain Supply Chain Management sustainability Target targeting technology twitter Walmart Whole Foods Youtube

Blog at WordPress.com.

  • Follow Following
    • Grewal Levy Marketing News
    • Join 461 other followers
    • Already have a WordPress.com account? Log in now.
    • Grewal Levy Marketing News
    • Customize
    • Follow Following
    • Sign up
    • Log in
    • Report this content
    • View site in Reader
    • Manage subscriptions
    • Collapse this bar
 

Loading Comments...