Dollar General Expands $1 Item Selection to Drive Traffic

Dollar General is expanding its selection of $1 items to attract cost-conscious consumers facing inflation and rising gas prices. The company's Value Valley selection of 600 items priced at $1 saw comparable sales growth of 16% during the second quarter, significantly outpacing the chain's broader same-store sales growth of 3.5%.

The retailer currently stocks approximately 2,000 items at the $1 price point. It plans to increase that number by 40% in the second half of 2026, with further expansions scheduled for 2027. This strategy focuses on consumables and food items, including the addition of $1 freezers, to drive foot traffic using a loss-leader approach similar to supermarkets.

This strategy diverges from competitor Dollar Tree, which has raised prices on most items to $1.25 and focuses its remaining $1 selection on discretionary goods such as toys and home decor.