Dollar General expands its market to compete with retailers Kohl’s and Target.
general dollar (managing Director) – Get a free reportIt’s been in the news lately, but not necessarily for a good reason. Like many businesses, Dollar General has been plagued by understaffing and has had a dramatic increase in the number of customers coming through the door.
The discount retailer has seen a nearly 20% increase in traffic from January 2020 to January 2023, according to pleasure.ai.
Dollar General pays on the lower end of salaries, according to a survey by retail consulting firm,Korn Ferry. Most retailers have raised wages to be more competitive and retain workers. However, when Target and Kohls retailers pay higher wages, it is difficult for Dollar General to retain its significantly lower-paid employees.
Dollar General was in trouble in Georgia when the Department of Labor cited the company for multiple workplace safety violations at various locations that may have been caused by understaffing or poor employee training. The violations included dangerously stacked products, blocking an egress route, and blocking an electrical panel.
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Dollar General makes a surprising investment
Since staffing has been an issue, Dollar General may consider investing in staffing, but has not indicated that staffing will be the primary focus of the company’s latest $100 million financial commitment. Dollar General, however, plans to invest in expanding its beauty and personal care items.
Both Target and Kohl’s have also made investments in beauty and personal care recently. Aim (TGT) – Get a free reportand ultimate beauty (LAST) – Get a free report have launched a partnership with Target that offers a new, more elite personal care and beauty shopping experience. Kohl’s (KSS) – Get a free reporthas also expanded its partnership with Sephora (LVMHF) to offer a higher level of personal care and beauty products.
Dollar General’s expansion of beauty and personal care products includes the company’s own brand, Believe Beauty, which has a range of beauty products priced $6 and under. The Believe Beauty brand is cruelty-free, vegan, and free of parabens, mineral oils, petroleum, and animal by-products.
Dollar General plans to expand its “Beauty Reinvention” beauty brand design into 300 new stores. This expansion will include more than 1,000 beauty products, including the branded exclusive with Curl Rhythm, Joy Works, Yes! Honey, according to Retail Immersion.
“At DG, we’re always listening to our customers, and in response, we’re investing and expanding our hair, skincare, and beauty offerings to meet their needs,” said Amanda Wilson, senior beauty buyer, Dollar General. . “Spring marks an important time to reset and refresh your self-care routine. We are excited to welcome new products that encompass the quality, performance and affordability expected of our brands and hope our shoppers enjoy the new experience.”
Dollar General Critical Needs
While Dollar General has seen an increase in foot traffic, it hasn’t always kept up with the demands to safely and effectively get products to shelves, which could be related to supply issues and/or shortages. staff. If the products aren’t on the shelves, it doesn’t matter how many people walk through the retailer’s doors if the products are still in boxes and not accessible to customers. However, the company has not indicated whether part of its $100 million investment will go toward increasing staffing.
