As Dollar General aims to infuse a breath of fresh air into its shopping experience, it’s venturing into personalized collections, including the aromatic debut of Club92 in partnership with Slatkin + Co.
This initiative aligns with the growth of the global home fragrance market, which was valued at $7.2 billion in 2022 and is projected to grow at a CAGR of 5.16%, reaching $9.7 billion by 2028.
“With a continued value-focused consumer, we recognize our shoppers seek savings and quality. We are proud to listen to customer feedback and take that into consideration when adding a new line,” Dollar General said in an emailed statement to PYMNTS.
During the retailer’s last quarterly earnings report in December, Dollar General said it would be homing in on customer value. To do that, it would be refining its strategy.
“We are getting back to the basics here at Dollar General,” CEO Todd Vasos said at the time.
Given consumers’ ongoing constraints due to inflation, Vasos said, the company’s approach is designed to adapt to these circumstances.
During the investor call, Dollar General emphasized its merchandising strategy, expressing its intention to provide increased discounts to customers, particularly in the current economic climate. The retailer mentioned its ongoing assessment of methods to attract shoppers, such as promoting private brands. A significant focus is on SKU rationalization, aiming to eliminate less productive items to cut costs, enhance inventory turnover and boost sales of essential products.
In its email to PYMNTS, Dollar General highlighted that, when contemplating a new launch, the retailer and its vendor partners rely on market and consumer insights to inform such decisions.
Dollar General also emphasized, however, that in delivering items that consumers want and need, ensuring an affordable price point is crucial.
“Our wide selection of private and exclusive brands allows us to develop products comparable to national brands and are created with our customer and their feedback in mind,” Dollar General told PYMNTS.
Despite the economical pricing of all the newly launched products, Dollar General emphasized that Club92 is specifically positioned as a premium home fragrance line, incorporating the finest available ingredients and available at Dollar General’s everyday low prices.
The retailer said it collaborated with Slatkin + Co to create a line designed to resonate with both new and existing customers.
Harry Slatkin, CEO of Slatkin + Co and the vendor partner behind Club92, reportedly designed custom glass candle vessels and packaging that reflect the product’s high quality. The products are prominently featured in the candle section of the home aisle.
“With approximately 20,000 stores in 48 states, we believe we are well positioned to continue supporting our customers through our unique combination of value and convenience. Club92 is an extension of our ability to increase affordable access to items our customers want,” said Dollar General.
While Dollar General did not specifically comment on what’s in its 2024 playbook, as its earnings call is nearing, according to its last call the retailer has enlisted a slew of modifications to ensure its resonating with its core customers.
Regarding its stores, the retailer intends to allocate additional resources to front-end activities, improve inventory management to ensure products are consistently available on shelves and monitor and reduce shrinkage. Dollar General has also expressed its intention to increase the number of employees at the front end, particularly in the checkout area, to offer more assistance to customers.
In December, Vasos also talked about the supply chain, an area where the retailer has made progress but sees more opportunities to improve. The goal is to ensure deliveries arrive on time and in full, making things easier for store teams and providing a better experience for customers and employees.
To that end, Dollar General aims to organize inventory in distribution centers, introduce initiatives to improve productivity and reduce the use of temporary external warehouses. These steps are meant to lower distribution and transportation costs, increase on-time and complete deliveries and boost sales.