Dollar General was a brand generating some media buzz at the end of last year, but not for the reasons the company had hoped. After an appearance on Glenn Greenwald’s Rumble show, Tucker Carlson rantedabout his distaste for dollar stores.
Although it is unclear what set Carlson on an anti-dollar store crusade, one thing is obvious: Carlson’s disregard for the importance of companies like Dollar General proves how disconnected he is from reality. It was only a few months earlier that Dollar General (DG) vowed to play a greater role in combating food deserts across the United States—a laudable mission given that DG is not even a grocer.
Food deserts occur in communities that lack adequate supply or accessto affordable and nutritious food, and DG’s status as one of America’s largest small-box retailers gives it a unique opportunity to expand its “food first” strategy to underserved areas. Currently, around 80% of DG stores reside in localities where the population density is 20,000 or fewer, making DG’s presence a godsend for some since larger grocery stores tend to shy away from such areas.
Food insecurity is a complex matter and while many focus on the need for greater affordability, access is also a primary concern—and DG is determined to help address both. However, doing so will be no easy feat, and DG’s success depends on several factors.
BUDGET-FRIENDLY BEGINNINGS
The first Dollar General store opened on June 1, 1955, in Springfield, KY, after James Luther Turner and his son Cal decided to try out a novel idea: Everything sold would be a dollar or less. Their vision proved to be a huge success and, to this day, approximately a quarter of DG’s merchandise still adheres to the dollar and under model. The price point was a major draw for consumers not only due to affordability but also because of the ease of cost calculation. Shoppers who struggled with numeracy, a common problem in rural America then, could simply count the items in their basket to pre-determine their cost at checkout.
Since its inception, DG has aimed to ease shopping tensions and, for those with budgetary constraints, the company has modernized its approach through the myDG® Wallet app, which provides real-time information about prices, promotions, and purchase options. DG also readily accepts payments via Supplemental Nutrition Assistance Program (SNAP) and Electronic Benefits Transfer (EBT) cards and tries to make the process seamless so shoppers can feel confident about what food products are covered and which items are not (such as pet food and health supplements).
DG also recently added an impressive amount of new food items to its private label brand, Clover Valley, to offer more affordable alternatives to popular name-brand products.
BROADENING NETWORKS FOR CHANGE
Over the past few years, Dollar General has been demonstrating big plans for scaling its impact, and the company has been prioritizing store openings in areas prone to food desert status. In addition, DG aimed to feature fresh produce in more than 10,000 stores and reached the 5,000 store mile marker early in 2024.
Locations where population and income levels are limited are particularly at a loss for healthier food options, and the reason goes beyond monetary factors. Underdeveloped supply chains and insufficient infrastructure for storing and stocking perishable items constitute major hurdles for getting fresh food to remote and rural locations. Moreover, acquiring various types of produce is dependent on supplier availability and interest. And when it comes to attracting produce vendors, DG is simply not on the same level as the big Ws (Walmart, Wegmans, and Whole Foods).
Suppliers desire shelf space at Walmart and Wegmans due to scale opportunities and the assurance of a committed consumer base, while Whole Foods has strong brand appeal for those with higher purchasing power along with the backing of its parent company, Amazon.
Nevertheless, DG is actively pursuing new vendor relationships and, by upgrading in-store capabilities for refrigeration and inventory management, its commitment to stocking produce appears to be unwavering. DG recently aligned itself with Shelf Engine to implement an AI-driven platform for optimizing produce orders.
ON TREND WITH A TARGETED MISSION
It is worth noting that, according to ChaseDesign’s 2023 Dollar Store Channel Survey, grocery was “the top category” shopped for in the dollar store sector. A particularly interesting find reported by Supermarket News is that “Foot traffic to discounters and dollar stores rose 4.7% during the period from April to June, while grocery visits held steady and trips to superstores fell 2.4%.”
Given these statistics, and if such trends continue, Dollar General stores may be able to more readily attract suppliers along with those eager to invest in the booming sector of retail media marketing. According to forecasts reported by ADWEEK, 2025 is predicted to be “a huge year for retail media, with more retailers becoming bigger advertising players.”
A strong retail environment and an interested consumer base undoubtedly benefit DG’s bottom line, but it also empowers DG to further pursue its “food first” strategy.
DG’s dedication to fighting food insecurity is not just tied to its sales efforts, it is also demonstrated through its contributions and extended partnership with Feeding America. DG has donated over $4 million with the equivalent of roughly 33 million meals to align with its stated mission of “serving others.” Such a mission matters when, according tothe U.S. Department of Agriculture, “13.5% (18.0 million) of U.S. households were food insecure at some time during 2023,” an increase from 2022, which was recorded at 12.8% (17.0 million).
AWARENESS OF BUREAUCRATIC BARRIERS
Dollar General received a Progressive Grocer Impact Award for its efforts to provide healthy and affordable food options to underserved communities in 2023. But, for DG’s most vulnerable consumers, food prices and availability are only one part of the puzzle, another major factor that DG must be mindful of concerns changes in SNAP/EBT benefits (previously known as food stamps).
Recipients of SNAP/EBT benefits received a funding boost during the COVID-19 pandemic, but levels reverted in February of 2023. According to findings by the Urban Institute, “SNAP benefits did not cover the cost of a meal in 99% of counties” where recipients were located. The average per-meal maximum benefit for 2023 was $2.73, and while an increase has just been approved for October, it is only by a few dollars each month.
Consumer confidence in SNAP/EBT benefits has never been strong and perhaps that is to be expected. The amount of funds granted, the requirements for recipients, and any mechanisms for monitoring efficiency seem to be up for constant political debate. So, while DG’s partnerships in the private realm appear to be going strong, decisions occurring in the public sector also require DG’s attention—at both the federal and local levels.
According to Business Insider, “About 60 cities and towns have restricted dollar store openings since 2018.” Reasons range from zoning laws to township preferences. In response to this finding, a DG spokesperson stated, “We believe restrictive measures harm communities by limiting customer choice, convenience, and affordability, particularly in inflationary times, and forcing customers to travel farther and/or spend more to access basic household and food items.” In a recent advertorial sponsored by DG in The Atlantic, several communities serve as real-life case studies proving that DG’s presence has played a significant part in alleviating food insecurity.
BUILDING MOMENTUM BY BULKING UP MARKETING
Dollar General’s success in expanding food access and healthier food options is dependent on DG’s success overall as a business. Therefore, the company needs to attract as many customers and as much good press as possible, which brings us back to why someone like Tucker Carlson could derail DG’s process.
Although Carlson’s viewership has declined, his fanbase is still a staggering amount and his opinions can sway the actions of his followers. Fortunately, younger generations are less interested in Tucker and more interested in TikTok.
According to Retail Dive, “TikTok has become the go-to platform for viewing shopping hauls and finding cheaper alternative products at retailers, including dollar stores” and DG has benefited greatly from influencers on the platform. Data from Morning Consult, as reported by Yahoo! Finance, found DG to be “the 15th fastest growing brand amongst Gen Z in 2023” thanks in large part to TikTok influencers swaying shopping preferences. And Gen Z, which has been dubbed the foodie generation, is proving to be a powerful consumer base with interests that seem to align with DG’s mission, given their desire to support health and sustainability.
Moving forward, DG needs to lean in and capitalize on these demographic trends and bulk up its PR strategy to position stores as being worth supporting in addition to shopping at. And while consumers can be wary of marketing campaigns that are boastful, DG’s somewhat underdog status along with the genuine effort being put toward a worthy cause should grant the brand a bit of bragging rights. DG’s rooted history in affordability shouldn’t hamper the brand’s ability to be repositioned as one that is advancing America’s well-being, but it will take a significant amount of marketing to do so.
Peter Drucker, famed management guru, rightly noted that marketing is not just another aspect of business, rather marketing is business. In Drucker’s words, marketing is “the whole business seen from the point of view of its final result, that is from the customer’s point of view.” Catering to one’s customer base, however, is easier said than done. Marketers must balance their understanding of consumers as being both part of a broader collective as well as individuals with singular and distinct needs.
For DG, the appeal must be multifaceted to attract the preferences of those who choose to shop at DG in addition to providing the best experience to consumers who have no other choice but DG. In the end, only time will tell if Dollar General can attain success by delivering savings to our wallets while providing products for America’s well-being.
Originally published here
