DG

June 04, 2024

You can imagine my surprise when I was driving the kids back from the lake and came across a “new” store on the outskirts of our town.  It was prominently placed at the grade school crosswalk that led to a growing new subdivision.  Although the market front had a new look, it felt familiar.  It surprised me I had not noticed new construction at the site, although I had not been to the lake for several weeks.  I was even more confounded when I saw a large “Clearance” sign attached to the building.  How could you have a clearance sale at the new store?  I went home without thinking much more about it, but when I returned to walk the kids the next day, I realized what was going on.  This was not new construction or even a new store.  The building had been a Dollar General the last time I had seen it.  The clearance was possible as the store liquidated its sundry inventory to make way for the meat and fresh produce that comprised a portion of the refurbished DG Market.

When I looked online, I found that although the DG Markets are built (or refurbished) as modestly sized buildings, the inside looks more spacious because of its new, clean, and organized arraignment.   The sections of the store are labeled and there are visual zones to create the illusion of more space.  DG still uses the practice of making sure their markets are strategically located to ensure each location will continue to meet “their customers’ price, value, and selection needs.”  According to their publicist, DG’s offers the top 20 items typically sold in traditional grocery stores and covers approximately 80% of produce categories of most other grocery stores.  While the fresh meat section does not stack up to the local butcher shop, they do carry some staples (even baby back ribs!).  The Health and Beauty isles provide ample (name brand) items that are not marked up over the local box markets.  Even if you are not after groceries, the DG Market still carries a lot of the same items you bought from the regular Dollar General, like home decor to trash bags to party supplies.

Over the last two years Dollar General has opened new DG Markets and replaced several regular Dollar General locations (like mine) with this updated store concept.  Matthew Simonsen, Dollar General’s senior vice president of real estate and store development said the company is aiming to provide communities with “closer access to fresh foods” through its DG Market stores.  While the exact number of DG Markets opened is not clear, there are well over 100 locations listed on Google as of June 2023.  These markets are not the only spinoffs under the Dollar General brand, either.  The company also has DGX stores in a few urban locations that are laid out more like a convenience store.  Then there is “popshelf” that debuted in 2021 in response to the pandemic and had 30 locations by the end of the year.  Popshelf sells beauty products, home decor, party supplies, and other discretionary items, with products mostly for $5 or less.  The chain’s target audience initially skewed female, with the outlets located in suburban markets with household incomes ranging from US$50,000 to US$125,000.  DG has received criticism for exploiting lower income food deserts (and even causing them), but they are one of the few ventures that is willing to provide access to these underserved communities.

THOUGHTS:  Melissa and I had a game of guessing how many cars would be parked at the DG at the entrance to the small town we visited each Sunday.  It was always between 7 to 9 vehicles.  As I pass the new DG Market in our town, it is usually the same even with our two chain supermarkets.  Food deserts are a serious problem for rural and low income consumers, especially when there are limited transportation options.  Underserved communities need to be supported with access to inexpensive quality goods and services.  Act for all.  Change is coming and it starts with you.