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Dollar General’s Profitable Delivery Business Spurs Subscription Pilot

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Dollar General’s Profitable Delivery Business Spurs Subscription Pilot
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Dollar General delivers 80 percent of orders from its stores in one hour or less, and says delivery is now a profitable, growing sales driver.

The company piloted the MyDG Delivery option from roughly 75 stores in 2024, before expanding it to approximately 18,000 of its 21,000 stores by the end of the first quarterDollar General is delivering more than 80 percent of its orders from stores in one hour or less, with 40 percent of those orders delivered in under 30 minutes.contributed approximately 70 basis points to Dollar General’s 2 percent comparable sales growth in the first quarter.

“Collectively, these delivery options have significantly enhanced the convenience proposition for our customers with the ability to deliver from stores to their homes within minutes,” said Vasos in a June 2 earnings call. “Our rapidly growing delivery platforms are becoming a more meaningful sales driver as we continue to see larger basket sizes than an average in-store transaction and strong repeat visit rate.

”Amazon Pumps $12 Billion Into European Supply Chain With 25,000 New Jobs and Next-Gen Robotsfrom Dollar General,” said Emily Taylor, chief operating officer at Dollar General, during the call.

“I think our team has done a really outstanding job of putting together the right value for that program that we’ll include in our pilot, which combines benefits at Dollar General with other offers and other benefits for our customers that are specifically targeted and chosen for our customer base. ”option from roughly 75 stores in 2024, before expanding it to approximately 18,000 of its 21,000 stores by the end of the first quarter. Taylor said the Goodlettsville, Tenn.

-based company is still in the first year of full deployment of the delivery service.

“Delivery for us is a highly incremental business, and it’s a profitable business for us today,” said Taylor. To use DG Delivery, customers can place orders through Dollar General’s app, which offers products at the same prices they would offer in a store. The program accepts digital coupons and offers cash back rewards. The dollar store first jumped into delivery in 2021 when it entered a delivery partnership with DoorDash.

That pilot program began across 600 stores in the summer of 2021. Last year, the company onboarded Uber Eats to expand its The retailer has capitalized on its breadth and proximity to the consumer—its stores are located within five miles of 75 percent of the U.S. population—without needing to directly employ its own drivers. Dollar General’s same-day expansion comes at a time when major retailers are making on-demand delivery a major priority.

Not to be outdone,unveiled last month that the retail giant can reach approximately 60 percent of the U.S. population in 30 minutes or less. Walmart says it currently offers its 30-minute service in 33 major markets.30-minute delivery service to major metro areas.

The half-hour service follows the e-commerce giant’s recent expansion of its own one-hour andAs Dollar General navigates a delivery landscape attracting the retail industry’s largest players, it is getting a bump from consumers constrained by the current macroeconomic conditions. Net sales at Dollar General increased 3.4 percent to $10.8 billion in the first quarter of fiscal 2026 compared to $10.4 billion in the first quarter of fiscal 2025, with the company attributing the increase to “an accelerated rate” of consumers trading down amid affordability concerns.

“Many of our core customers reporting cutting back on other household expenses, including food purchases, due to rising gas prices,” said Vasos. “This pressure has been more pronounced on customers in rural communities as they work to minimize trip distance and make trade-offs in their search for everyday affordability and value. ” Vasos noted that the retailer’s largest customer cohort increase came from those earning more than $100,000.

The CEO said elevated fuel costs have compounded consumer concerns of sustained inflation.

“When that price hits that $4 mark, then crosses it and then sustains for a while, you start to see that trade-in come in, and you start to see that our core customer needs us most,” said Vasos. Freightos' Judah Levine says renewed warnings from Iran and Yemen's Houthis are unlikely to trigger major operational changes. June cargo volumes are expected to surge 14 percent, but NRF forecasts import declines through the traditional peak season months.

In a letter to USTR Greer, the senators say the mere warning of the surcharges worked, with orders at Chinese shipyards down 23.5 percent in the first nine months of 2025. WWD and Women's Wear Daily are part of Penske Media Corporation. © 2026 Fairchild Publishing, LLC. All Rights Reserved.

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