Dollar General to Reduce Product Assortment

Dollar General is streamlining its supply chain to better control its CPG inventories across its over 20,000 domestic locations, reports The Wall Street Journal.

The dollar store operator will reduce its product assortment and regulate how much product reaches store shelves in a strategy to improve efficiency, reduce theft, and minimize store inventory shrink, according to the report. Moreover, the chain is restructuring its distribution network and modifying its warehouse sorting process.

Chief Executive Todd Vasos said on a recent earnings call that the retailer’s goal is to ensure inventory “gets to the shelf when it comes in and it gets in front of the consumer as quickly as possible.”

Since the pandemic, managing inventory has been a focus for retailers, and trimming down the product assortment can help retailers simplify their supply chain while saving money, said Tom Goldsby, a logistics professor at the University of Tennessee.

Carrying a broader range of products “means more complexity, more difficulty in trying to meet the moment and meet the consumer,” said Goldsby. Full Story (Subscription Required)