Money Talks: Dollar Stores Starting to Pony up on Fresh Produce

Throw me a penny for each of my deep thoughts during the recent info-laden USApple Outlook Conference in Chicago, and I’ll have at least a buck to my name. Which is convenient, considering I now have more reason than ever to visit the local dollar store.

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Word out of the Windy City is that Dollar General, which already offers fresh produce in more than 1,500 stores, is planning to expand the amenity to more than 10,000 stores, including 2,000 by the end of this year. Customers of the company’s “DG Fresh” initiative can expect to see top-20 items typically sold in grocery stores and approximately 80% of the produce categories carried by most grocers.

Meanwhile, competitor Family Dollar kicked off a similar campaign this summer, selling apples, oranges, onions, potatoes, and other fruit and vegetables at roughly 100 of its more than 7,000 stores.

Who knew of this shift in retail markets? I didn’t. And apparently I’m not alone. A quick check of Twitter reveals a trending theme along the lines of, “Since when did Dollar General get produce?” People are starting to take notice, which, according to Dollar General CEO Todd Vasos, is attributable to the pandemic.

“We believe we will ultimately exit the pandemic with a larger, broader, and more engaged customer base than we entered it, resulting in an even stronger foundation from which to grow,” Vasos says.

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There is a call for another fresh produce outlet, even if that isn’t necessarily the case for my family in suburban Cleveland. We’re in the vicinity of several grocery stores, including niche retailer Aldi, which, ironically, was considered by many to be the “dollar store of produce” just a few years ago. Today it’s my wife’s preferred pit stop for fruit and vegetables.

If Dollar General is to mimic Aldi’s ascent, it’s going to do so while catering to USDA-defined “food deserts” — rural and underserved communities across the country. The company has entered into an operational partnership with Feeding America to proactively address food insecurity in those areas.

“Food insecurity impacts communities across the country,” Vasos says. “With our extensive store footprint, often in communities others have chosen not to serve, Dollar General is uniquely positioned to help combat hunger by offering convenient access to a variety of nutritious foods at affordable prices.”

In a world where talk is cheap, Dollar General seems to be the real deal. Already, approximately 75% of its stores serve communities of 20,000 or fewer individuals. And in tackling the issue of food insecurity, how fitting that the buck might stop here — with dollar stores.

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