Dive Brief:
- Dollar General said it would offer exclusive branded products as it prepares for the summer, according to Supermarket News.
- Among the products being offered are Oreo Mississippi Mud Pie cookies, a 16-ounce Coca-Cola can series honoring military veterans, Regal Cinemas brand popcorn and an exclusive six-pack of Motts mango juice.
- The limited-edition products will be promoted through the retailer’s digital coupons, including its “Fast Way to Save” offers.
Dive Insight:
Dollar General has outperformed the food retail industry by a considerable margin during the past several years, in part because it's redefining what a dollar store can be. Offering a lively, ever-expanding product mix has played a big role in this success, and creating exclusivity around some of its products is a great way to continue that trend.
The new offerings could create a profitable buzz around stores this summer. With millennials known for enjoying limited-edition items and being early adopters, they could quickly grab flavorful offerings such as the Mississippi Mud Pie Oreos.
Dollar General and other dollar stores are drawing a surprisingly large number of young, affluent consumers. Checkout data gathered by the NPD Group shows 25% of customers at the three biggest dollar chains are millennials from households earning $100,000 or more. Earlier this year, Dollar General recently introduced its DGX concept store aimed at further capitalizing on millennial shoppers.
But looking at the lineup of exclusive offerings, it seems Dollar General is targeting shoppers from a variety of demographics. With sales down across many CPG categories, spurring interest across all consumer groups is important for both retailers and manufacturers.
The drawback here is many other retailers also offer product exclusives. Wal-Mart Stores has added the Crotilla, a cross between a flour tortilla and flaky croissant, in more than 800 of its stores. Last year, the retail giant partnered with Hostess to serve as the exclusive seller of Deep Fried Twinkies, a frozen creation that came out of a year-long collaboration between the two companies.
Consumers also are gradually foregoing national brands in favor of private label and niche products. Dollar General is taking a chance by investing in the idea. At the same time, price and brand loyalty are major drivers for many of the company's low-income shoppers. Success for Dollar General will be defined by whether it can appeal to its core shoppers while also attracting enough new consumers to make the investment worth it.