Popular discount store Dollar General has recently drawn more customers from higher-income households as people try to save money while facing looming inflation. The chain is known for its low prices and believes bargains will become even more valuable to shoppers in the coming year. For Dollar General, that will also mean spending more on bolstering inventory and adding staff as it works to gain additional market shares—up to $100 million more.
Count Yahoo Finance according to reports, many people, even those with middle and upper incomes, will have to change how they shop in 2022 due to higher food prices. In a call with analysts, Dollar General CEO Jeff Owen reportedly said, “Customers and income brackets above our core customers [are] shopping with us at an increasing rate.”
Instead of buying as much as before, customers are buying fewer items and relying more on savings, credit cards, or borrowing money. It was motivated Dollar General to work towards improving its supply of frozen and refrigerated products to keep up with demand. The company has invested in 12 facilities for this purpose and plans to expand the offerings to over 5,000 stores by 2023.
The Wall Street Journal reported that although Dollar General’s sales grew 5.7%, the growth was slightly lower than predicted. Its earnings per share were also low, at $2.96. Despite these challenges, the company plans to invest $100 million this year to make stores more efficient for bargain hunters. It hopes this will attract more customers and improve the shopping experience.
Even as Americans struggle with economic problems and cut costs, Dollar General and other discount stores want Full of Dollars expect their sales to grow as more people look for ways to save on everyday items.