Dollar General has started accepting supplemental health benefits as a payment method for goods including food, over-the-counter medicines and wellness items at all of its stores, marking the latest step by the discount chain to boost its presence in the grocery sector.
In a Wednesday post on its website, the retailer indicated that the move is connected with its ongoing effort to position itself as a source for health-oriented products, particularly for consumers who live in rural areas. About three-quarters of people in the U.S. reside within five miles of a Dollar General location, according to the company.
“We believe our partnership to expand access to supplemental and value-added benefits demonstrates our focus to keep our customers at the center of all we do and further establish Dollar General as a health destination,” Albert Wu, Dollar General’s chief medical officer, said in a statement.
Wu, a physician, joined Dollar General in 2021 as part of the company’s drive to sharpen its profile as a provider of healthy products. In 2022, Dollar General said it had formed a panel of healthcare experts to help guide its efforts to focus more on health and wellness.
The company, which recently opened its 20,000th store, has been working for several years to raise its profile as a healthcare destination. In 2021, CEO Todd Vasos told investors he believed that strategy could pay off for the company. Dollar General recorded declining comparable-store sales in its latest quarter even as overall sales rose amid the retailer’s fleet expansion.
Dollar General’s decision to let shoppers use supplemental benefits to make purchases follows the retailer’s announcement last month that it now carries fresh fruits and vegetables at more than 5,000 of its stores. The retailer noted Wednesday that it also carries an expanded assortment of health and wellness products in over 7,000 stores through an initiative called DG Wellbeing.
Dollar General’s initiatives centered around well-being come as the supermarket industry has also sought to attract shoppers through health-focused strategies.
For example, Albertsons in 2022 began accepting pre-paid cards funded by Medicare Advantage to pay for produce and over-the-counter products. Last year, Food Lion started a two-year program with a North Carolina hospital under which the health care facility distributes boxes of nutritious food to eligible patients when they are discharged.
