Dollar General is adding more $1 items. It's stealing a page from supermarkets' playbook
Dollar General boosts $1 items by 40% ahead of the holidays, after second-quarter success. Strategy targets increasing foot traffic.
Dollar General is set to expand its collection of $1 items by 40% by the end of 2026, as the company aims to attract customers looking to save money during inflationary times, according to executives. Currently, the retailer stocks around 2,000 items priced at $1, and the selection is expected to grow even more by 2027, according to COO Emily Taylor.
The company's strategy is similar to traditional grocery stores' approach of offering low-priced essentials to draw in customers, a tactic known as "Value Valley." Dollar General's average customer is still gainfully employed and has seen income gains, but inflation and rising gas prices have offset those gains, leading many to visit the stores more often and purchase smaller quantities per visit.
The company expects that customers are habitual and return to familiar places for similar products, ensuring the expansion of its $1 items will continue to draw in shoppers.
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