Investors have been doubtful about the fact that Dollar General is spreading its network way too quick and retailers now have to show them results proving the fact that expanding the network by opening new chains is not the single best way to increase their business. To do this, Dollar General seems to be following Wal-Mart’s footsteps.
Experiencing major decline in its sales, Dollar General has decided to try out other methods to stay in competition and keep its sales growing.
While their strategy includes adding one thousand more stores by the end of 2017, they are also planning to improve the business and sales growth in the currently running stores.
These are the tactics they are following to get their sales higher:-
- Increasing the salaries of the employees, especially the Manager
Realising the fact that decreasing the price of products cannot alone help them run the race along with their competitions, they have decided to take sixteen cents from every share they hold to increase the paying scales of their manager as well as employees. The better the manager is trained the better the store is maintained, which includes maintaining the hygiene and product-check too.
Some of their stores have already implemented these changes and according to their executive Vasos, the company saw an increase in sales and working efficiency in those stores.
Wal-Mart has invested a massive sum of 270 million dollars to train their employees better and increase their payscales so that they can serve the customers better
- Lowering the Product Prices
A full-fledged war is going on between Wal-Mart and Dollar General for providing the lowest of prices and cheapest of products, thereby maintaining the quality of the products.
When it was announced by the mart that they are going to lower the prices of their products, Dollar General also cut down the prices of their products in some of the stores, which have performed better than the rest of stores in the chain.
- Providing Fresh Products
This point does not need any special explanation. It’s no rocket science. No one would buy your products if they are not fresh. It is as simple as that.
Lowering the sales of canned or packed foods, Dollar General has also decided to opt for its healthier and hence, tastier alternative. This tactic has already taken effect in many chains. Hope that it also helps them in boosting their sales.
- Improving Their Digital Services
When it comes to being digital, Dollar General is not running the race very well among its competitors. But according to their CEO, they are constantly working on improving their services on the digital level.
The customers buying their products on a higher scale would specially be benefitted if they get the option of paying through digital money as it is more convenient for them.