ND1208112

Title: Dollar General to Fill ?Food Desert? Void

Description: The discount chain wants to open its food market stores in areas without grocery stores.

Page Content: GOODLETTSVILLE, Tenn. ? Dollar General is considering branching out its food market concept into so-called food desert areas, the Tennessean reports. The discount chain first mentioned branching out with food market locations back in 2008, but the concept was not developed further at that time.

�

But this week, CEO Rick Dreiling said the market store will ?play an expanding role in the future of Dollar General.? Dollar General?s market stores have all the usual dollar store products, but also sell dairy, meat, frozen foods and other groceries. Currently, Dollar General Market stores have 62 locations in nine states.

�

Analysts predicted that the food market concept would gain momentum in the coming years. ?I think it?s a smart strategy. Dollar General sees an opportunity in areas undeserved by traditional grocers,? said Anthony Chukumba, an analyst with BB&T Capital Markets. ?Consumers are already responding. Given the current macro-economic environment, consumers are much more focused on needs than wants.?

�

Dollar General currently will open 625 new stores in 2012, and new market stores only account for 6.4% of the company?s plans for next year. Dollar stores continue to siphon off market share from Walmart because shoppers like smaller stores within easier driving range.

�

?The key is providing customers with what they want,? said Chukumba. ?But it?s a little bit of a double-edged sword because consumables have a relatively low growth margin.?

Content Subject: Operations

Formatted Article Date: December 8, 2011

you want to learn rino