Dollar General putting ‘food first” with expansion of private label
Dollar General is investing in private brands.
The discounter is expanding its private label brand, Clover Valley, to include new on-trend national brand alternatives, debuting more than 100 new items for 2023, with many featuring stylish new packaging designs. Introduced in 2009, Clover Valley has grown to include approximately 600 items.
The expansion comes as store brands posted record sales and share for the first half of 2023, according to a report from the Private Label Manufacturers Association (PLMA). It also occurs as Dollar General has been steadily increasing its food footprint.
The retailer recently announced that 80% of new stores and nearly all store relocations for fiscal 2023 will be in one of its larger store formats, which provides the opportunity for a significant increase in cooler count, as well as the ability to add fresh produce in many stores.
As of the first quarter, Dollar General offers fruits and vegetables in nearly 3,900 stores with plans to have produce in 5,000 locations by January 2024.
“We have made significant enhancements to our private brands in 2023, and we know how important these value offerings are for our customers,” said Emily Taylor, executive VP and chief merchandising officer at Dollar General. “We believe these products will further differentiate Dollar General in the marketplace as we look to provide our customers with tremendous value on quality products.”
Dollar General’s expansion of its private brand highlights its Food First’ initiative – a broader strategy aimed at providing customers with healthier options including more food products and fresh food. While not a grocer, approximately 80% of Dollar General stores serve communities of 20,000 or fewer people with many Americans, especially in rural areas, relying on the retailer for their basic, everyday and household essentials. Recently, consumables accounted for approximately 80% of total sales at Dollar General.
“Customers shared that they believe in the quality and equity of Clover Valley and were receptive to more innovative products,” said Jackie Li, senior VP of private brands and global sourcing, Dollar General. “We have put ‘Food First’ this year because we see a need and to fulfill the desire for even more options.”
The chain said its research indicates that Dollar General offers a price advantage over most food and drug retailers, with prices that are competitive with even the largest discount retailers.
As of May 5, 2023, the company operated 19,294 Dollar General, DG Market, DGX and pOpshelf stores across the United States and Mi Súper Dollar General stores in Mexico.