The DG Fresh initiative by Goodlettsville, TN-based Dollar General BB #:172794 is paving the way for the company to expand fresh produce to 10,000 stores.
Company executives said during its 4th quarter and year-end earnings call on March 18, the self-distribution initiative, which does not currently include fresh produce, has expanded to 16,000 of the company’s 17,000 stores.
“Originally, DG Fresh was all about reducing product costs, improving in-stocks and a broader assortment, and we’ve hit on all three,” said Jeff Owen, Chief Operating Officer, during the call. “The other thing that we’re excited about is the future and what it can potentially provide for us as we continue to grow.”
The company began slowly adding fresh produce to stores a few years ago, as it remodels stores to new formats including Dollar General Traditional Plus. DG Fresh was instituted to begin self-distributing refrigerated perishables.
“We also believe that DG Fresh plays a key role in unlocking our ability to do produce in over 10,000 stores as we look ahead,” Owen said. “DG Fresh is a complicated initiative that the team did a phenomenal job of implementing and is going to set us up for the future in a big way.”
Dollar General plans to open 1,050 stores in 2021, remodel 1,750 stores and add produce to 700, bringing the total number of stores with produce to 1,800.
