Dollar General Commits to 2 New Private Brands in 2019

Discount retailer Dollar General revealed in its March 14th, Q4 2018 Earnings Conference Call that it will continue to expand its private brand commitment in 2019. Building on the success of the 2018 launch of the better for you brand Good and Smart as well as their HBC brand Studio Selection the retailer will introduce two new brands a baby brand and a prestige at a value beauty brand.

Todd Vasos, Dollar General CEO discussing the moves on the call said:

“Our new, Good and Smart private brand has gained traction with our customers and we are positioning it as a core product line in Better For You. In addition to good and smart launch in 2018, we had great success with the launch of Studio Selection, our aspirational health and beauty private brand. In 2019, we’re planning a similar private brand launch in baby products.

I’m also excited to announce that we’ll be launching a new private brand and cosmetics in April. We remain dedicated to the beauty category at Dollar General and we believe we can continue to take share from all classes of trade. Having a premier private brand is an important part of our strategy. The new DG private brand will be called Believe and will include an inspiring lineup of attractively priced cosmetics that we think will be appealing to our customers.

This cosmetic line is just one part of our ongoing efforts to capture share in the health and beauty category. From efforts focused on the growing bath and body segment to enhancing the shopping experience in this section of the store with more intuitive signing and product placement, we have a lot of opportunity to drive HVA sales.

Across private brand, we continue to believe we can increase sales and penetration, which could have a meaningful impact on both gross margin and sales growth over the long term. In 2018, we conducted a holistic review of our private brand portfolio and are incorporating what we’ve learned into our 2019 go to market plan. In addition to sales-driving initiatives, we continue to pursue opportunities to enhance gross margins.”

According to WWD Believe Beauty was co-developed with Maesa to be prestige-quality products at a value. Believe will debut May 1. The range will include 150 makeup products priced at $5 or less. Industry sources estimate the line account for $40-$50 million in annual sales.

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Christopher Durham is the president of My Private Brand and the co-founder of The Vertex Awards. He is a strategist, author, consultant and retailer who built brands at Delhaize-owned Food Lion, and lead strategy and brand development for Lowe’s Home Improvement. He has consulted with retailers around the world on their private brand portfolios including: Family Dollar, Petco, Staples, Office Depot, Best Buy, Metro (Canada), TLW (Taiwan) and Hola (Taiwan). Durham has published five definitive books on private brands, including his first book, Fifty2: The My Private Brand Project. In 2017, he will debut his newest book, Vanguard: Vintage Originals, a visual tour of innovation and disruption in private brand going back to the mid-1800’s. Dynamic in his presentation while down to earth and frank in his opinions, he has presented at numerous conferences, including FUSE, The Dieline Conference, Packaging that Sells, Omnishopper and PLMA’a annual trade show in Chicago. Durham lives in Charlotte, NC with his wife, Laraine, and two daughters, Olivia and Sarah.