Dollar General's customers buying groceries skipping everything else

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Dollar General's customers buying groceries skipping everything else
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Dollar General is luring more shoppers with its cheap groceries — but it might be backfiring

for discount-focused retailers. Earlier this week, fellow dollar store chain Dollar Tree announced it was pausing stocking eggs due to high prices.

Grocery is a low-margin business, but the idea is that having a grocery assortment drives more customers to stores and leads to repeat visits. When these customers come to the store, the hope is that they'll be tempted to buy more. Discount shoppers, who come into the store and have a limited amount to spend, might end up using their allotted amount to buy groceries rather than shopping for other items, such as homeware, which generates higher margins for Dollar General.

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