American network of dollar general stores (NYSE: DG) said about the increase in assortment in a press statement. The company will start selling medicines, health food, стоматологические продукты и гигиенического средства.
Affordable medicine for rural dwellers
Three quarters of US residents live in 5 miles from 1st of 17 thousand Dollar General stores. For almost all rural dwellers, DG is the only large trading company nearby.. The company focuses on such customers, who do not have wide access to medical goods and services.
“At Dollar General, we are constantly looking for new ways to service, and our clients told us, what would you like to see more wide range of cheap medical products and services. Our goal is to introduce and expand affordable healthcare services for our clients, especially in rural areas ", - said the head of Dollar General Todd Vasos.
Even in a press statement, the company announced the appointment of Albert Wu as head doctor., who previously worked at McKinsey & Company. Wu will help DG develop a new direction and build relationships with sellers of medical products and services..
Huge stores and a wide range
Dollar General's desire to vary the assortment coincides with the company's plans to expand the network. In March, DG said, that in the coming year will open 1050 large stores and reconstruct 1750 old. According to the Management, DG can boost profits by growing selling space and selling more marginal non-grocery products.
According to Jefferies analysts, medical products will help the retailer increase market share and increase margins. According to company research, prices in Dollar General for 40% below, than in pharmacies, and on 20% below, than regular grocery stores.
Recently another major network, Walmart, announced the start of sales of insulin at reduced prices: patients can save 58 to 75%. The company stated, that cooperates directly with the drug manufacturer Novo Nordisk. According to statistics, approximately one in ten Americans suffers from diabetes and spends about ten thousand dollars annually on treatment.
О Dollar General
Dollar General - a chain of stores, where the food is sold, cosmetics, household chemicals, clothes and various seasonal goods at low prices. At the end of April 2021, the DG network had 17,426 stores in 46 States.
27 In May, the company published its financial report for the first quarter of 2021. Compared to the first quarter 2020 year, revenue fell by 0,6%, to 8,4 billion dollars, and operating profit increased by 4,9%, to 0,9 billion. Leadership awaits, that total revenue in 2021 will remain at the same level as last year. As quarantine restrictions are lifted, the flow of customers is falling, but the company compensates for this by opening new stores.
