Get All Access for $5/mo

Dollar General Announces $100 Million New Spending on Staff and Store Improvements Inflation is also driving higher-income customers to the discount chain.

By Steve Huff

Justin Sullivan | Getty Images

Popular discount store Dollar General has recently gained more customers from higher-income homes as people try to save money while facing looming inflation. The chain is known for its low prices and it believes bargains will be even more important for shoppers in the coming year. For Dollar General, that will also mean spending more on boosting inventory and adding staff as it works to gain additional market shares—up to $100 million more.

As Yahoo Finance reports, many people, even those with middle and upper incomes, had to change how they shop in 2022 because of higher food prices. In a call with analysts, Dollar General CEO Jeff Owen reportedly said, "Customers and income brackets above our core customers [are] shopping with us at an increasing rate."

Instead of buying as much as they used to, customers now purchase fewer items and depend more on savings, credit cards, or borrowing money. This has prompted Dollar General to work toward improving its supply of frozen and refrigerated products to keep up with demand. The company invested in 12 facilities for this purpose and plans to expand offerings to over 5,000 stores by 2023.

The Wall Street Journal reports that although Dollar General's sales grew by 5.7%, growth was slightly less than predicted. Its earnings per share were also low, at $2.96. Despite these challenges, the company plans to invest $100 million this year to make stores even better for bargain hunters. It hopes this will attract more customers and improve the shopping experience.

Even as Americans struggle with economic problems and cut back on expenses, Dollar General and other discount stores like Dollar Tree expect their sales to grow as more people look for ways to save money on everyday items.

Steve Huff

Entrepreneur Staff

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Celebrity Entrepreneurs

The Pep Talk From Mickey Mouse We All Need to Hear, Compliments of Chris Diamantopoulos

Chris Diamantopoulos, the star of "The Sticky," "Red Notice" and the voice of Mickey Mouse, gets real about resilience, chasing dreams, and his desperate wish for a normal hobby.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Science & Technology

Why Businesses Are Relying on Automation to Survive the Labor Crisis

Robots are revolutionizing industries by addressing labor shortages and enhancing efficiency, while businesses navigate challenges like workforce adaptation and high implementation costs.

Growing a Business

How to Build, Grow and Make Money With Ecommerce

To grow your online business, you need to develop a strategy and invest your time wisely. These actionable tips can attract customers and increase online revenue.

Green Entrepreneur®

How Global Business Leaders Can Build a Sustainable Supply Chain

Businesses can build sustainable supply chains by leveraging technology to reduce environmental impact, optimize resources and track emissions while balancing operational efficiency and sustainability goals.