The company said Thursday it would open 975 new stores in the United States this year. Dollar General will also redesign 1,000 older stores with new queuing lines for short-term impulse buying. It will also improve its health and beauty sections.
Dollar General has been growing in rural America for years. It opened 900 stores in 2018 and 1,315 in the previous year. It has more than 15,300 stores across the country and sales have increased in 29 consecutive years.
Dollar General ( DG ) speaks primarily to low and middle income customers in rural and suburban areas. This helps to counter suburban chains such as Dollar Tree ( DLTR ) and Family Dollars, which focus on urban customers. Family Dollar has had problems in recent years and will close nearly 400 stores this year.
Dollar General wants to build businesses in rural areas where a large retailer or grocery store is no more than 1
5 to 20 miles away. This gives the company proximity to buyers and forces frequent shop visits. According to the company, 75% of its locations are in cities with 20,000 or fewer inhabitants.
The uneven economic recovery in the United States has revived Dollar General in recent years.
"While the economy is developing very well, our principal customer continues to struggle," Todd Vasos, principal director of the dollar, told analysts over the past year.
Dollar General rose even during the holidays General in stores, which had been open for at least a year, rose 4% year-over-year in the final quarter, exceeding analyst expectations.
The closure of the US government helped sell US dollars as the agriculture department closed down the The company also announced that the number of buyers buying food and household products, such as kitchen appliances and small appliances, has also picked up.
201 General plans to focus on selling more food and beverages Hundreds of shops are equipped with product sections and refrigerators.
Doll ar General said that offering fruit and vegetables in shops in rural and urban food deserts "can cause a tremendous amount of traffic".
The strategy could help Dollar General compete with larger rivals such as Walmart ( WMT ) and repress the threat of German discounters Aldi and Lidl. Aldi has invested billions of dollars in fresh food stores. Lidl acquired a few dozen Best Market grocery stores in New York and New Jersey last month.
Correction: An earlier version of this article revealed the number of dollar general stores in the United States.