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Dollar General Makes a Grab at the Grocery Biz

Its new 'general store' concept is designed for convenience


Massive one-stop discount stores like Wal-Mart (NYSE:WMT) and Super Target (NYSE:TGT) once reigned supreme in the shopping game. But with customers getting tired of walking a mile to pick up a pair of tennis shoes and another mile to get milk, the big-box stores are losing some charm — and customers.

Dollar General (NYSE:DG) is hoping to pick up those weary customers by morphing into what its CEO Rick Dreiling calls, “the new general store,” according to The Wall Street Journal. The strategy behind the Dollar General Market stores, which sell a variety of grocery items as well as household items and apparel, is to include a a decent selection without carrying everything.

In addition to carrying more grocery products, the dollar store will make sure the items are arranged for the customer’s convenience and not as a ploy to get people to peruse every aisle.

Dreiling told WSJ that there are plans to open about 40 new Dollar General Markets, but that the general store concept is still experimental.

“They are a good opportunity for growth where they fit,” Dreiling said, “But we’re trying to be analytical and thoughtful, eating the elephant one bite at a time instead of swallowing the whole thing.”

The full WSJ report can be viewed here.

Article printed from InvestorPlace Media,

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