Dollar General is testing same-day delivery to customers’ homes in response to competition from retailers like Walmart, Amazon, and Target. The retailer soft-launched the delivery program in September at about 75 stores, and plans to expand to thousands of stores eventually. The program, called DG Delivery, allows customers to order through the Dollar General app and receive their order in as little as an hour with no delivery fee or minimum order requirement. The service is provided through a third-party company.
The move to offer same-day delivery reflects the pressure Dollar General has felt from economic challenges and competition. The company has seen a decline in market share, particularly to Walmart, and has faced fines for workplace safety hazards. Dollar General’s e-commerce business is not typically shared in quarterly reports due to its reliance on brick-and-mortar sales.
CEO Todd Vasos sees same-day delivery as an opportunity to grow the retailer’s advertising business and increase customer engagement with the app. The program builds on the success of DoorDash deliveries available at about 16,000 Dollar General stores. While still fine-tuning the business model for the online offering, Vasos is optimistic about its potential. However, same-day delivery is currently only available at a small fraction of Dollar General’s 20,000 stores across the U.S., primarily in rural areas.
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