Dollar General expands its private label business
What: A US discount store doubles down on private labels in fresh food.
Why it is important: Private labels are not the privilege of department stores anymore, and the pricepoint should not be their purpose. Instead, department stores should enhance their brand perception thanks to such labels.
Dollar General is expanding its private-label food offerings with a 100-item expansion of its Clover Valley brand.
The move is aimed at increasing food and beverage sales, which already account for 80% of the company's sales. The expansion includes a variety of new products, such as sauces, condiments, entrees, sides, and snacks. Dollar General is investing heavily in grocery, with plans to install more cooler doors and expand fresh produce offerings in its stores.
Despite challenges from reduced SNAP benefits and inflation, private-label brands continue to see sales growth, and Dollar General aims to differentiate itself in the market with its value offerings.
