Is there any limit to how many stores Dollar General can open?
One driving force behind the recent waves of brick-and-mortar store closures has been the need to trim unprofitable locations in an overstored retail landscape. One retailer, however, is going full tilt with a physical retail expansion in 2020, which will continue to make it one of the fastest-growing retailers in the U.S.
Dollar General is planning to open 1,000 stores next year, adding to its existing store footprint of more than 16,000 locations, according to an article on CNN. This comes at a time when the chain has been demonstrating both increased year-over-year sales at many stores and increased quarterly profits.
“From rural areas to metropolitan centers and all communities in between, we proudly help a broad range of customers save time and money on items they use and replenish most often,” Crystal Ghassemi, director of public relations at Dollar General, told RetailWire regarding the expansion. “As such, our focus is on serving customers and the communities we proudly call home.”
While pursuing such a large expansion may be at odds with current conventional wisdom, some of Dollar General’s moves have been right on trend with the way major retailers are addressing the new demands of the retail landscape.
Earlier this year, Dollar General became the first national dollar store chain to begin experimenting with BOPIS services, launching the feature at select locations as part of its DG GO! smartphone app. Even before adding BOPIS, that app represented the dollar store space’s first use of scan-and-go technology.
In 2018, Dollar General began testing DGX, its small store concept. DGX stores are half the size of the chain’s 9,000-square-foot mainline locations, meant to fit in urban environments and appeal to a Millennial audience.
As part of its ongoing expansion, Dollar General will be rolling out 20 additional DGX stores by the end of 2020 to add to the existing 10, according to an article on Produce Blue Book. In its mainline stores, the chain will be adding fresh produce to about 250 locations, bringing the total stores with fresh produce on the shelves to 850.
- Dollar General is opening 1,000 new stores next year – CNN
- Is BOPIS a good fit for Dollar General? – RetailWire
- Will Dollar General’s DGX concept be a hit with urban Millennials? – RetailWire
DISCUSSION QUESTIONS: Will Dollar General see value from its expanding store base in the coming years? With retail over-storing a perennial problem, what can Dollar General do to prevent itself from ending up in a precarious position?