Dollar General launches e-commerce site; move aimed at helping company sell pricier and higher-quality items not in stores, attracting broader customer base, analysts say
September 8, 2011
– Dollar General Corp. is set for a Sept. 8 launch of its first e-commerce site, dollargeneral.com, Investors.com reported Sept. 7.
Dollar General sells most of its products for under US$10 so the added cost of shipping may not always make sense for buyers, though the company has not released shipping costs and declined to comment on this story, Investors.com reported.
The company is planning to offer somewhat pricier and higher quality products that cannot be found in its 9,600 physical stores.
Dollar General can use e-commerce to make bulk sales and generate higher-value orders, which could attract wealthier shoppers to help grow the business, according to Forrester Research analyst Sucharita Mulpuru.
The introduction of an e-commerce site will allow the company to sell items that it doesn’t carry in stores because of lacking space and other factors, Howard Davidowitz, chairman of consultant and investment bank Davidowitz & Associates.
Households that earn $70,000 or more represent a small part of Dollar General shoppers, while many of the company’s primary customers are not computer savvy, but they are trying to broaden their base, ThinkEquity analyst Mark Mandel said.
The primary source of this article is Investors.com, Los Angeles, California, on Sept. 7, 2011.