The economy has changed Dollar General’ customer base. “We are seeing customer penetration growth across low, middle and high-income segments as customers across all income cohorts seek value at increasing rates,” said CEO Todd Vasos during the chain’s first-quarter earnings…
ll. It’s a shift where wealthier customers have sought out the discount chain, which has traditionally served a financially strained customer base that lives close to its more than 20,000 U.S. locations. “Notably, across these cohorts, the largest increase in customer count came from the highest income segment, which earns more than $100,000 annually,” he added
To better serve all its customers, Dollar General has been leaning into a strategy made famous by Costco. No, the chain hasn’t started charging for memberships. It has, however, bet big on its private-label program.
Dollar General adds more $1 items Dollar General isn’t a dollar store, despite its name. In recent quarters, however, the chain has added more $1 price points in a section of the store it calls “Value Valley.” “And then lastly, and I can’t emphasize this enough, that $1 price point has turned out to be a real savior for our core customer and is really resonating with the trade-in customer. We’re seeing that accelerate at a great rate, 18.4% comp in Value Valley,” Vasos said.