Dollar General Expands Capacity to Offer Fresh, Chilled Foods
Your nearby Dollar General (NYSE: DG) store will soon be more likely to offer frozen and chilled groceries and fresh produce. On Thursday, the retailer revealed plans to build three new DG Fresh facilities to support the effort to expand its grocery lines. The company is also planning a new distribution center for non-grocery goods.
Dollar General has proven surprisingly competitive against bigger rival Walmart (NYSE: WMT), largely by doing things distinctly differently. Whereas Walmart opts to erect fewer but bigger superstores to serve a large area, Dollar General stores are strategically placed closer to people's homes. CEO Todd Vasos noted during an earnings call earlier this year that about three-fourths of the country's consumers live within seven miles of a Dollar General. Its smaller stores also mean customers can usually complete their shopping trip in less than ten minutes. That's less likely with Walmart's typically sprawling superstore.
Image source: Dollar General
Source Fool.com
