Dollar General plans to open food markets in U.S. 'food deserts' in 2012; food market stores to account for 6.4% of company's 625 new locations planned for next year

Allison Oesterle

LOS ANGELES , December 6, 2011 (Industry Intelligence) – Dollar General Corporation plans to build 6.4% of its 625 new locations slated for next year in "food deserts" and offer food in addition to their more traditional products such as apparel and home goods, the Tennessean reported on Dec. 6.

Although the food market concept was temporarily abandoned after a leadership change at Dollar General in 2008, chief executive Rick Dreiling has confirmed that the food market concept till “play an expanding role in the future of Dollar General.”

Anthony Chukumba, a stock analyst with BB&T Capital Markets, said that he was unsurprised by the move: “I think it’s a smart strategy. Dollar General sees an opportunity in areas undeserved by traditional grocers. Consumers are already responding. Given the current macro-economic environment, consumers are much more focused on needs than wants.”

Over the past year, Dollar General has added 600 new stores nationwide, bringing their total number of locations to more than 9,800.

Same-store sales at Dollar General stores that have been open for at least a year increased by 6.3% during the third quarter of 2011, driven partly by holiday consumer shopping.

The primary source of this article is the Tennessean, Tysons Corner, Virginia, on Dec. 6, 2011.

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