Goodlettsville, Tennessee-based Dollar General has begun to introduce a redesign of its neo-generic private label Smart & Simple. The design is stark – screaming cheap so loudly that it seems to assume the customer is not smart enough to identify $1 cake mix. The expansion of the label is widely seen as a response to the introduction of Walmart’s extreme discount, low quality label Price First.
CEO Richard Dreiling discussed the expansion of the brand in the retailers Q1 2014 Results – Earnings Call
“In the first quarter alone, 49 planograms have been changed to provide more affordable items on our shelf across about 90% of our departments, making it easier for our customers not only to see great value, but also to see affordability. We are leveraging the Smart & Simple private brand. Smart & Simple is a great platform that allows us to offer the lowest opening price points in categories on the shelf.
The Smart & Simple brand was launched about six years ago to deliver affordability. Our customer recognizes that the brand is just as the name indicates and does not expect the product to be national brand equivalent like our portfolio of other private brands including Clover Valley, DG health and DG home.
Smart & Simple allows us to further expand our product offerings and offer a good product at an opening price point that delivers affordability. This year alone, we will add approximately 40 new Smart & Simple products primarily across food, paper and home cleaning, including items from liquid dish soap to macaroni and cheese.”