Dollar General, a mainly rural chain, starts selling fresh produce and refrigerated goods

Dollar General Inc., which has discount stores dotting the rural landscape and is one of Wal-Mart's biggest competitors, is branching out and selling groceries, Ann Zimmerman of The Wall Street Journal reports. The company is stocking fresh produce and refrigerated products in midsize "market stores" to draw shoppers more frequently, increasing how much they spend with Dollar General.

The market stores haven't been as profitable as the company's traditional stores, but it says the gap is narrowing, Zimmerman reports. She writes that competition among mid-size stores is heating up; Wal-Mart and Target have versions of mid-size stores, and drugstores have sold food and refrigerated items for years.

Dollar General's CEO said the move is a step in becomming "the new general store," where "harried, frugal shoppers can get the most essential things they need at a discount without traipsing through airplane-hangar-sized supercenters," Zimmerman reports. The company plans to open about 40 market stores, many in "food deserts," where residents lack easy access to fresh food. (Read more)