DGCustomerfirst – Dollar General is taking all over the United States with its services provided. According to the report of the year 2017, dollar general has been opening new locations at the rate of four stores around a day. in the year 2018, there was 900 store that added to the rate of about three stores a day.
With the dollar general facing competition from competitors like Amazon and other competitors as well, the dollar general has flourished, swooping in and offering its customers prices that are 20% to 40% lower than the grocery and drug store.
Dollar general had first opened its store in the year in 1955 in a small town in Kentucky, the dollar general has stayed true to its roots and they are predominantly serving rural and as well as their suburban low-income customers.
Dollar general – A growing company
Since the mid-1950, the dollar general has flourished as a company all across the country in the most; rural areas. The company operated more than 16000 stores nationwide and they are selling brand names at steep discounts in predominantly low-income areas. Dollar General has become a $40 billion behemoth opening around 3 stores each day and even rewarding all its investors with good profits. Even in the global coronavirus pandemic, the dollar general company is still growing and its stock price has reached its highest the previous month as all its customers in its stores have reached to stock up on their essential items.
Dollar General is on a path to dominating in America and here is the reason discussed below
Its stores are predominantly based in rural locations: the general dollar company has the majority of its stores in the United States which are located in the rural and the suburban areas where the company costs less to operate. Dollar General has more than 14,761 stores across the 44 states and more than 45% are located in the southern states.
It has a no-frills shopping experience: the stores are smaller which is around 7300 square feet and they have a barebone design. There is truly a no-frills shopping experience for the customer who wants to get in and get out of the store, according to dollar general, the average shopping trip to its store lasts no more than 10 minutes.
The company has a limited selection of products: dollar general states clearly on their website that they do not carry every brand, they just have the most popular ones. According to the record, each of their stores between 10,000 to 12,000 has unique products. The company only carries a limited number of items, which gives Dollar General more buying power with all the suppliers as it buys in bulk.
It keeps their labor costs down: dollar general is very basic; they focus more on getting a deal which often means that the customer is prepared to sacrifice on services. So, they have fewer products stocked in small and ultimately requiring too small and less staff for the outlet.
Dollar general packages items in small quantities: instead of selling items to their customer in bulk, the dollar general sells a small number of items to keep the cost of each transaction low. Through the customer view, the prices stay below $10 but likely they are paying more on a per-item basis. Nevertheless, this also in a way lower the ticket value and also serves its core customer well, as they might not necessarily have the disposable income to be able to be the shop in bulk.
It stocks a limited amount of fresh produce: dollar general is looking to grow its business in the areas of business as they experience a more frequent visit to the store to buy the perishable items. According to the statement stated by Vasos, sting that the dollar general plans to roll out fresh produce to 100 more stores adding that same-store sales numbers were three times as high in stores that stocked fresh produce as in those that did not.
It looks to cut costs in the supply chain: dollar general has been constantly looking at where they can cut the costs in the supply chain. Dollar General has talked about their private fleet to control the delivery times and to ensure about the routes are efficient so that the trucks are not wasting time on the delivery routes.
Work in a pandemic: dollar general has recently announced to install 40000 sneeze guards and provide their employees with gloves all across its stores. The store is also paying their employees an additional dollar per hour who has worked over six weeks beginning in mid-march.
Dollar general is putting in place its growth strategy and they are focusing on the image of the company. to take the company to the next level, the dollar general is working on its expansion through the steps like working on opening new stores and finding out what their customer is expecting from them.
And to improve themselves the dollar general is taking interest in the finding of their stores that they have mistakenly put in the low potential areas, relocating them and continuing to place stores according to the strategic plan for the rural areas.
To know what their customer wants or what their customer expects from them they have introduced a survey which contains a bunch of question for the customers who recently have visited the store. After the survey is completed by the customer, they get a reward for completing the survey.
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