While other retailers are seeking partnerships with beauty retailers to secure high-end beauty brands and attract high-income earners, Dollar General is taking a different approach by focusing on what it does best — offering customers exceptional value, even in the beauty space.
The discount retailer has joined forces with beauty incubator Maesa to provide Believe Beauty and other brands at the best possible prices, available only to Dollar General customers. Furthermore, it’s looking to maintain a certain level of control over its collection.
“We’re driven by a simple idea: that beauty should be approachable, lovely and fun for all,” Maesa Director of Marketing Daniel Woldar said in an interview with BeautyMatter. “No matter their age or how advanced their routine is, this brand is for those who simply desire beauty they can purchase with confidence.”
Woldar said Maesa’s understanding of consumers’ ever-changing needs helps the company create distinctive and relevant beauty brands. He said Believe Beauty was established with the goal of offering cost-effective yet attractive products.
Believe Beauty has a wide range of beauty products under its umbrella, including cosmetics, skincare, fragrance, nail care and haircare, all priced under $5. With its affordable pricing strategy, the brand has resonated with Dollar General customers.
The move follows Dollar General’s new emphasis on beauty products, announced last month. “Beauty Reinvention” calls for a series of new store layouts in 300 stores that give shoppers an easier way to navigate its beauty and personal care items.
“We have been purposeful in our expansion, balancing new, fresh and trendy items with value,” Amanda Wilson, senior beauty buyer at Dollar General, said in a news release. “Beauty Reinvention creates a beauty destination at DG.”
The initial Beauty Reinvention stores were introduced in February, featuring beauty bars aimed at offering customers a “treasure hunt” experience. These bars feature an array of beauty products, including face masks, hair treatments, nail polish, lip gloss and bath bombs.
Read more: Dollar General Reinvents Its In-Store Beauty Offerings
Dollar General’s move to expand its private label offerings is in line with other retailers such as Walmart that are also increasing their focus on in-house brands. Despite inflation, Walmart has promised to keep prices low on its private-label products, with CEO Doug McMillon stating that the company is committed to not participating in any recession that may occur.
Amid difficult economic conditions, Dollar General remains a popular choice among consumers seeking convenience and affordability.
In its most recent earnings report on March 16, Dollar General attributed its success to its commitment to meeting the changing needs of its customers and its focus on customer satisfaction. Despite challenges such as food inflation and financial strain on its customers, Dollar General is optimistic about its ability to continue growing profitably. The company has emphasized its dollar price point and private brands, which have helped to drive sales even in a difficult economy.
Dollar General’s Q4 results reflected a 6% rise in comparable sales and a nearly 18% growth in overall sales. With that, the company revealed that it plans to open more than 1,000 new stores, expanding its current network of 19,000 locations, and anticipates capturing a larger market share in multiple product categories.
See also: Dollar General Takes Aim at Walmart, Beefs Up Private-Label Brands and Perishables
“As a low-cost operator, Dollar General is always looking to provide our customers with high-quality products at an affordable price,” Katie Ellison, senior manager of communications at Dollar General, told BeautyMatter. “The main reason for increasing the amount of beauty products we offer is that store brands as a whole have been embraced by shoppers.”
Woldar said Maesa’s success is rooted in its customer-centric approach. “Everything we do is for the Dollar General customer, that beauty shopper,” Woldar said. “When we look at a product we’re bringing to market, it’s not just about the ingredients, it’s not just about the utility of the product — it’s the entire experience.”
Ellison said Believe Beauty has been a hit with consumers right from the start, particularly during periods of inflation. She said TV personality Bethenny Frankel of “The Real Housewives of New York City” has tried and tested several of the company’s products and found them comparable to luxury brands.
Dollar General’s focus on affordability is reflected in its partnership with beauty incubator brands, which grants the company access to a broad spectrum of new beauty products.
While inflation continues to impact consumer spending, DG’s strategy enables the company to differentiate itself from competitors and attract customers seeking something different and exclusive.
The discount retailer’s focus on providing value to its customers with private label brands has allowed it to carve a unique space in the highly competitive beauty market.
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