Popular discount store Dollar General has recently gained more customers from higher-income homes as people try to save money while facing looming inflation. The chain is known for its low prices and it believes bargains will be even more important for shoppers in the coming year. For Dollar General, that will also mean spending more on boosting inventory and adding staff as it works to gain additional market shares—up to $100 million more.
As Yahoo Finance reports, many people, even those with middle and upper incomes, had to change how they shop in 2022 because of higher food prices. In a call with analysts, Dollar General CEO Jeff Owen reportedly said, “Customers and income brackets above our core customers [are] shopping with us at an increasing rate.”
Instead of buying as much as they used to, customers now purchase fewer items and depend more on savings, credit cards, or borrowing money. This has prompted Dollar General to work toward improving its supply of frozen and refrigerated products to keep up with demand. The company invested in 12 facilities for this purpose and plans to expand offerings to over 5,000 stores by 2023.
The Wall Street Journal reports that although Dollar General’s sales grew by 5.7%, growth was slightly less than predicted. Its earnings per share were also low, at $2.96. Despite these challenges, the company plans to invest $100 million this year to make stores even better for bargain hunters. It hopes this will attract more customers and improve the shopping experience.
Even as Americans struggle with economic problems and cut back on expenses, Dollar General and other discount stores like Dollar Tree expect their sales to grow as more people look for ways to save money on everyday items.