Dollar General Steps Up Focus on Produce

Discount retailer Dollar General has doubled down on its focus of offering fresh produce at its stores while it fights allegations that dollar stores are actually contributing to food deserts (read more on this below). 

In January, the retailer announced that it has rolled out fresh fruits and vegetables to 5,000-some of its more than 19,000 stores across the U.S. According to a media release, this milestone makes Dollar General the retailer with “more individual points of produce distribution than any other U.S. mass retailer or grocer.” 

DG says these stores now carry the top 20 items typically sold in traditional grocery stores, such as tomatoes, onions, apples, strawberries, potatoes, lemons and salad mixes.

DG had announced its new focus during its Q4 2022 earnings call last March. 

“We are constantly looking for ways to better serve our customers and one of our top priorities is to ensure the communities we call home have access to fresh, affordable, and convenient food options,” Emily Taylor, executive vice president and chief merchandising officer at Dollar General, said in the release. “We have exceeded our goal of having 5,000 total stores with fresh produce by January 2024.  We’re proud to leverage our footprint to meet the need for healthy food options in more communities than any other retailer across the U.S.”

DG’s Latest Partnership

DG has recently invested in a partnership with Shelf Engine, an AI company that provides retailers with technology that improves perishable food forecasting and ordering. 

DG teamed up with Shelf Engine for a two-phase pilot program that began in December 2022 at more than 400 stores. Following success from that pilot, the partners are now rolling out the automated AI platform nationally to evolve and optimize the DG’s in-stock produce levels, according to the release.

By the end of the retailer's fiscal year 2023 (ending in March 2024), Shelf Engine's AI technology will be implemented in approximately 3,000 stores across the U.S., Shelf Engine said in a media release.

DG’s ‘Food First’ Initiative

In 2023, DG announced its “Food First” initiative as part of its wider goal to fight food insecurity in its communities. The initiative included the expansion of its private-label brand, Clover Valley, which has launched 100 new items to shelves including mostly non-perishable items (e.g., entrees, sides, sauces and condiments).

Fighting Accusations

These recent moves are likely driven by recent accusations that dollar stores are actually contributing to food deserts, AKA geographic areas lacking access to affordable, healthy food options (particularly fruits and veggies) due to the absence of nearby grocery stores.

A report from UCLA Anderson Review, published in March 2023, indicated that the rapid expansion of dollar stores into urban and suburban markets has come with “significant social and economic costs.” According to the report, critics say that the stores can be “magnets for crime;” but even more so, the low prices they promise — largely due to selling smaller package sizes — “disguise the fact they are often more expensive than their traditional competitors.”