Dollar General's secret weapon: selling items that are actually $1

"Case in point: A rotating selection of about 500 items that Dollar General sells in its stores for $1 - which the company calls "Value Valley" - sold at twice the rate of everything else that the retailersold during its second quarter, Vasos said on the company's most recent earnings call. That made the $1 section "one of our strongest performing areas in the quarter," he said."

"It's right there in the name. As tariffs loom and the holiday shopping season approaches, Dollar General is leaning into a novel strategy: Sell more items that actually cost $1. Dollar stores have spent years raising prices and adding products that cost more than $1 each. But Dollar General CEO Todd Vasos said that customers areincreasingly choosing items at the very price point that lends its name to the chain."

""We know this price point is important in helping our core customers stretch their dollar, particularly at the end of the month and when budgets are tight," he added. Vasos said the focus on value-priced items "will continue to be important for our customers, particularly in the back half of this year." Some dollar stores used to stick closely to the $1 price point."

Dollar General is shifting emphasis toward items priced at $1 as tariffs and the holiday season approach. A rotating set of about 500 $1 items, labeled "Value Valley," sold at twice the rate of other merchandise during the second quarter. The $1 price point helps core, budget-conscious customers stretch limited funds, especially at month end. The company plans to maintain focus on value-priced items into the back half of the year. Other dollar retailers have raised their baseline prices in recent years, making true $1 offerings increasingly scarce.

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