Dollar General tests same-day delivery to compete with Walmart in Los Angeles
Dollar General is stepping up its game by testing out same-day delivery from around 75 of its stores. CEO Todd Vasos shared on an earnings call that they plan to expand this service to “thousands of stores” in the future. This move comes as Dollar General faces tough competition from big players like Walmart, Amazon, and Temu, who offer both convenience and low prices.
The delivery program was quietly launched in September and is now available at select stores. Customers can place orders through the Dollar General app and receive their items in as little as an hour, all while enjoying the same prices they would find in-store. The best part? There is no delivery fee or minimum order requirement for this service.
Dollar General is learning from its DoorDash deliveries, available at about 16,000 stores, to fine-tune this new offering called DG Delivery. This service not only aims to make shopping more convenient but also provides an opportunity for the retailer to boost its advertising business. Vasos mentioned that this model relies on labor from a third party, rather than using store employees or company-employed delivery staff.
While this same-day delivery option is still only available at a small number of Dollar General stores compared to its vast network of over 20,000 locations, it represents a forward-thinking move for the company to adapt to changing consumer preferences. As Dollar General continues to evolve its online strategy, the focus remains on providing customers with a seamless shopping experience that combines affordability and convenience.
