Dollar General is seeking to continue providing value to customers during times of economic difficulty by expanding its grocery business, CEO Jeff Owen explained. Owen admitted that the retailer could be doing more in terms of evolving to better meet current consumer needs.
While Dollar General typically does better during times of financial hardship, as happened in 2008 when its sales rose by 9.4%, this year has proven different. Sales fell during the second quarter of 2023, with the company’s stock devaluing by over 50% since the start of the year. The company subsequently lowered its full-year earnings forecast and expects a decrease of 22% to 34% for the year.
Primarily targeting lower- and middle-income shoppers, Dollar General is focused on drawing in new customers through its drug and grocery departments. “We still see, from a share perspective, where our primary dollars are the same they’ve been for many, many years,” Owen explained. “And we believe there’s still much share for us to gain there, and that’s primarily drug and grocery.”