- Dollar General announced it's bringing back its “Summer of Exclusivity” promotion, introducing new, exclusive products from national brands such as Coca-Cola, Skittles, Hershey’s and Kellogg.
- Products include limited-edition Red Bull camouflage cans, a new Studio Selection line of beauty care items, and premium Nutro dog food options. Additionally, Dollar General will serve as the exclusive retailer for Aerosmith frontman Steven Tyler’s new DVD, titled Out on a Limb. This marks the second year the brand has partnered with a celebrity for the campaign. Last year, Dollar General promoted a “Simple Summer Meals” tool based on recipes by TV host Sunny Anderson.
- “We have a dynamic lineup of products our customers will only find at Dollar General including limited-edition products from national brand partners, an expanded assortment of better-for-you offerings and a host of unique beauty care products from the newly-launched Studio Selection line,” Jason Reiser, Dollar General's executive vice president and chief merchandising officer, said in a release.
As the food retail wars continue to intensify, Dollar General has become a major contender for Americans' grocery dollars. No longer content to be a fill-in stop for consumables, party supplies and other odds and ends, the dollar retailer wants to take sales away from supermarkets and become a regular food destination.
The exclusive products promotion is a differentiating move that will make Dollar General a destination for customers loyal to brands like Coca-Cola, Hershey's and Kellogg. Further, the uniqueness of products like Summer Splash Skittles should appeal to highly influential millennial consumers. According to Mintel, millennials are more likely to purchase a product if it “makes them feel special."
The benefits of the promotion extend to the CPG companies themselves, many of which are experiencing continued sales declines. By working with Dollar General, they can take advantage of the discount chain's growing customer base and spur novelty-driven sales.
The promotion comes on the heels of Dollar General’s announcement that it is increasing the number of store remodels that include perishable items. Dollar General is also remodeling its snack and beverage aisles to capitalize on increased consumer demand, and is offering healthier options, such as low-sodium and protein-rich selections.
In the company’s most recent earnings call, CEO Todd Vasos said he expects Dollar General’s expanded offerings to appeal to existing customers and to attract new ones. Dollar General’s grocery push – which now includes fresh, healthy and exclusive items – is likely good news for the nearly 75% of U.S. consumers who live within 5 miles of a store. However, for smaller and mid-sized grocery retailers that don’t have the same pricing or convenience positioning as Dollar General, these moves could force them further into survival mode.