Photo: Dollar General
Dollar General says it is not abandoning the pricing on its selection of $1 products, even as inflation continues to drive retail prices up nationwide.
While not everything in Dollar General costs $1, around 20 percent of its inventory does and the chain recently said that it will never increase prices on that assortment, according to CSP Daily News. In fact, Dollar General intends to expand its $1 selection. The chain sees that price point as meeting the needs of a financially strapped customer who relies on dollar grocery options. The statement comes as Dollar General competitor Dollar Tree has raised its prices permanently to $1.25.
The Dollar Tree move, which was announced in late 2021, was criticized at the time by David D’Arrezo, former chief merchant at Dollar General, as “[destroying] 35 years of brand equity in one fell swoop,” CNN Business reported.
Another value store with a price point in its name also recently strayed away from its branding with a cost increase.
In 2019 Five Below, named for its selection of products priced exclusively below $5, began piloting a section of its store called Ten Below, dedicated to products in the below-$10 range. In 2021 the chain went further, rolling out a store-within-a-store unconstrained by price promises, called Five Beyond, in one-third of its stores nationwide.
Other retailers who know their customers are looking for particular deals have stuck to their knitting on price, though, despite inflation.
As of July, 2022, Costco had not increased the price on its iconic $1.50 hot dog and soda deal or its $4.99 rotisserie chicken, according to The Street. The hot dog and soda deal has remained the same price since the 1980s. The warehouse retailer did increase the prices of its chicken bake and its standalone fountain soda.
While Dollar General is aiming to hang on to its under-a-dollar value proposition in its mainline stores, the chain also has an entire store concept where it can charge more. In 2020, Dollar General began opening more upmarket stores under the popshelf banner. In popshelf stores, 95 percent of products are priced at $5 or below.
- Dollar General’s $1 Groceries Are Here to Stay – CSP Daily News
- Why Dollar Tree’s price hike to $1.25 could be ‘one of the worst decisions in retail history’ – CNN Business
- Will Five Below’s sales go above and beyond with a new store concept – RetailWire
- Costco Raises Two Key Food-Court Prices (But Not Hot Dogs) – The Street
- Will Dollar General win over higher income consumers with its new store concept? – RetailWire