Popular discount store Dollar General has recently gained more customers from higher-income homes as people try to save money while facing looming inflation. The chain is known for its low prices and believes that bargain shopping will become even more important to shoppers in the coming year. For Dollar General, this also means spending more on increasing inventory and adding staff as it works to gain additional market share — up to $100 million more.
If Yahoo Finance reports, many people, even those with middle and upper incomes, had to change the way they shop in 2022 because of higher food prices. Speaking to analysts, Dollar General CEO Jeff Owen reportedly said, “Customers and income classes above our core customers [are] shopping with us more and more.”
Instead of buying as much as they used to, customers now buy fewer items and rely more on savings, credit cards or borrowing money. This has prompted Dollar General to work to improve its frozen and refrigerated product offerings to meet demand. To this end, the company has invested in 12 stores and plans to expand its offering to more than 5,000 stores by 2023.
The Wall Street Journal reports that while Dollar General’s sales grew 5.7%, the growth was slightly less than forecast. Earnings per share were also low at $2.96. Despite these challenges, the company plans to invest $100 million this year to make stores even better for bargain hunters. It hopes to attract more customers and improve the shopping experience.
Even as Americans struggle with economic hardship and cutting back on spending, Dollar General and other discount stores like Dollar Tree expect their sales to grow as more people look for ways to save money on everyday items.