Dollar General CEO Says Company Plans To Invest $100 Million To Improve 'In-Store Experience' for Customers

Photo byDollar General Texas/ Adobe

Did you know that in January 2022, Dollar General experienced a 19.2% increase in foot traffic compared to the same month in 2020?

This surge in customers has led the discount store chain to invest $100 million in enhancing the in-store experience for shoppers. The investment will primarily focus on increasing staff hours to maintain consistent store standards and improve customer service.

Despite facing challenges in hiring and retaining employees,Dollar General's Chief Executive, Jeff Owen, says in the latest earnings call that he recognizes understaffed stores lead to bad customer service and lost sales.

Understaffed stores and lost sales

Last year, we reported on problems with understaffing at Dollar stores, including last month when a customer was locked in store due to lack of employees.

He states in the earnings call:

"This investment will primarily consist of incremental labor hours to support our expectations regarding consistent store standards while further enhancing the associate and customer experience. In turn, we believe this investment will position us to drive greater on-shelf availability ..."

During the fourth-quarter earnings call with investors, Owen announced that the chain would invest the money throughout the year, primarily by increasing labor hours.

This investment will improve store standards and enhance shoppers' in-store experience.

Not enough employees to stock shelves

One specific consequence of the staffing shortage is empty shelves, which lead to LELA reporting on a former Dollar General employee to warn customers to check pricing.

While all retailers have reported supply chain problems stemming from 2020, Dollar General's problem is not the lack of merchandise but the need for someone to physically place products on shelves.

This is a significant issue for a format that sells merchandise that typically turns quickly.

To address this issue, Dollar General plans to increase staff hours to meet their expectations regarding consistent store standards.

Foot traffic up about 20%
Dollar General has seen continuous increase in profits in 2022Photo byAdobe

The dollar store format is booming, and chains must pay more attention to the staff.

According to The Street, Dollar General, Dollar Tree, and Family Dollar, owned by Dollar Tree Inc., have all seen a surge in foot traffic over the past three years.

In January 2022, Dollar General's foot traffic jumped 19.2% over the same month in 2020.

Foot traffic at competitors Dollar Tree and Family Dollar rose 21.2% and 19.9%, respectively.

Despite staffing challenges, Dollar General expects to grow comparable sales

Dollar General has struggled to hire and keep employees due to competitive wages and pandemic-related issues.

During the pandemic, retailers raised wages and offered bonuses and benefits to attract workers. Although the pandemic has eased, retailers still struggle to hire and attract workers.

Despite these issues, Dollar General expects to grow their comparable sales by 3-3.5% and open 1,050 new stores this year.

In addition, the company plans to spend nearly $2 billion on capital investments, including opening new stores.

As of March 13, 2023, there are 19,011 Dollar General stores in the US, with Texas having the most at 1,768 stores, accounting for 9% of all Dollar General stores.


Dollar General's decision to invest $100 million in its stores to enhance the in-store experience is a welcome move for customers.

Dollar General hopes to improve store standards and capture additional market share by increasing staff hours. However, the staffing shortage remains a significant challenge for Dollar General and other retailers.

Your thoughts

As a customer, what do you think about Dollar General's investment in their stores? Have you experienced staffing issues or poor customer service at a dollar store?

Share your thoughts in the comments below and share with family and friends if you like.

Disclaimer: This article is only for educational and informational purposes. The article and its information are not intended to provide advice, and readers should not solely rely on it as a source of advice.

Comments / 17

Published by

Bringing you the best Food, Retail and Travel news from across California & nationwide. I've been eating Big Macs since I was 5 years old. I strive to live Micah 6:8 every day.

Los Angeles, CA

More from LELA News

Comments / 0