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Dollar stores continue to increase food and beverage offerings

Dollar stores continue to increase food and beverage offerings

A story in Supermarket News earlier this month reports that Dollar General and Dollar Tree are pushing ahead with plans to increase their food and beverage offerings.

Dollar General

Dollar General reported that consumable sales rose significantly in the quarter ending May 4, which helped the company fuel a gain in total sales as well as same-store sales compared to the same quarter a year ago.

“We recently launched a better-for-you offering intended to provide our customers with healthier consumable options at affordable prices,” said Dollar General CEO Todd Vasos. “Over time, we expect this offering to include more than 130 products.”

Vasos also said the company will roll out Good & Smart, a new private label that will represent about 75% of the better-for-you product portfolio.

Furthermore, Dollar General plans to remodel locations with fewer than 12 cooler doors, as Vasos anticipates that the entire store base will have an average of 20 cooler doors by the end of fiscal 2018 (up from an average of 10 cooler doors in 2012).

The company plans to open 900 new stores this fiscal year, remodel 1,000 mature stores and relocate about 100 stores. Dollar General has nearly 15,000 stores in 44 states.

Dollar Tree

Dollar Tree President and CEO Gary Philbin reported that the company plans to expand its Snack Zone concept, which is designed to provide customers with an assortment of consumption products at the dollar price point to drive incremental sales.

The chain added Snack Zones to 214 stores in the most recent quarter, and plans to bring it to 750 more stores in fiscal 2018.

“Our customers are excited with the introduction of the Snack Zone – great values across categories of cold beverages, candy and snack cakes, salty treats and other favorites that bring our customers back to those treats they crave,” explained Philbin.

At Dollar Tree’s Family Dollar stores, consumables have been a focus in store remodels. Remodeled stores have expanded beverage and snack stands, and an added assortment of food in coolers and freezers.

Dollar Tree has nearly 15,000 stores (Dollar Tree and Family Dollar combined).