Why did DG's consumables revenue grow consistently?

Dollar General's consumables revenue grew consistently due to several key factors: 1. **Strategic Focus**: Dollar General has strategically focused on its consumables category, which accounts for 82.2% of its net sales. This focus has allowed the company to capitalize on the demand for everyday necessities. 2. **New Stores and Store Optimization**: The growth in consumables revenue has been driven by sales contributions from new stores and gains in comparable store sales. This indicates that the company's expansion strategy and store optimization efforts are effective in increasing revenue. 3. **Increased Average Transaction Amount**: The company reported a 2.3% increase in the average DG transaction amount. This suggests that customers are spending more per transaction, which contributes to the growth in consumables revenue. 4. **Customer Traffic and Satisfaction**: Despite a slight decrease of 1.1% in customer traffic, the company has reported higher customer satisfaction scores. This implies that customers are visiting stores more frequently and purchasing more items during each visit, which supports the growth in consumables revenue. 5. **Private Label Success**: Dollar General's emphasis on private label products has been successful, providing value and convenience to customers. Private label products often have higher profit margins than national brands, contributing to the overall revenue growth. In summary, Dollar General's consistent growth in consumables revenue can be attributed to its strategic focus on this category, new store openings, increased average transaction amounts, customer satisfaction, and the success of its private label products.