In order to develop a strong presence in a lesser populated area, companies need to know their customer and serve them well. Dollar General knows that in order to serve their customers well, they need to build stores in areas that are convenient for the customer. Typically this is a rural area that may not have any other retail options within a 10 to 20 mile radius. Dollar General makes most of their revenue off of packaging in smaller quantities that retail for less than ten dollars. This generates more revenue than the bulk stores such as Costco. Dollar General stocks the basic necessities so that when the community members need something, it is usually quicker and more convenient to stop in their store. They target an entirely different customer base than companies like Amazon, who generally target customers with more disposable income.

Small communities help companies within the community strengthen their supply chains by shopping there frequently and consistently. Dollar General customers in rural areas stop by a few times a week for a handful of items. This builds a customer base, and the consistency allows Dollar General to keep their shelves stocked accordingly. Dollar General opened a store in Cawker City, Kansas, with a population of roughly 450 people. Longtime resident Linda Clover says having food for sale in town again is a lifeline for the town’s substantial elderly population. She says the new store is both the retail and social hub of her declining little town. (Morris, 2017) Dollar General stores are frequently found in rural communities where one-third of the residents live at least 10 miles from a grocery store. As long as Dollar General continues to research their customer base and strives to provide their needs, they won’t be going away any time soon.

References:

Morris, F. (2017, December 11). How Dollar General Is Transforming Rural America. Retrieved November 9, 2018, from https://www.npr.org/2017/12/11/569815331/loving-and-hating-dollar-general-in-rural-america (Links to an external site.)

McGreal, C. (2018, August 13). Where even Walmart won't go: How Dollar General took over rural America. Retrieved November 9, 2018, from https://www.theguardian.com/business/2018/aug/13/d…

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The topic is Rural retail supply chains.