Dollar General is adding more than 100 new items to its private label brand, Clover Valley, as part of its “Food First” initiative to provide customers with healthier options including more food items and fresh food.
Originally introduced in 2009, the expansion will bring the range of Clover Valley items to approximately 600, with new additions including sauces, condiments, entrees, sides and snacks.
“We have made significant enhancements to our private brands in 2023, and we know how important these value offerings are for our customers,” said Emily Taylor, EVP and Chief Merchandising Officer at Dollar General in a statement. “We believe these products will further differentiate Dollar General in the marketplace as we look to provide our customers with tremendous value on quality products.”
While not officially a grocer, many Americans, especially those in rural areas, rely on the retailer for everyday essentials, including food (approximately 80% of Dollar General stores serve communities of 20,000 or fewer people). Internal company research also has found that consumables now account for almost 80% of total sales at Dollar General.
In response, Dollar General announced that 80% of new stores and nearly all store relocations for fiscal year 2023 will be larger formats, providing the opportunity for a significant increase in cooler count and the addition of fresh produce. As of Q1 2023, Dollar General offers fruits and vegetables in nearly 3,900 stores, with plans to offer produce in 5,000 locations by January 2024. (The retailer opened its 19,000th store in January 2023.) To enable this fresh food expansion the retailer has beefed up its supply chain significantly with a series of expanded and new regional distribution centers.
“When Dollar General pioneered the ‘dollar store’ format in 1955, few food products were offered,” said Jackie Li, SVP of Private Brands and Global Sourcing at Dollar General in a statement. “With continual growth and changes to the company’s business model, our product selection has evolved. Customers shared that they believe in the quality and equity of Clover Valley and were receptive to more innovative products. We have put ‘Food First’ this year because we see a need and want to fulfill the desire for even more options.”