As the deep discounter attempts to stave off more intense competition from Walmart, Dollar General is attempting same-day delivery to consumers’ homes.
Todd Vasos, the CEO of Dollar General, stated during a Thursday earnings call that the delivery service was soft launched in September. According to him, it now provides same-day delivery at roughly 75 locations. He did not identify the third-party company that offers it.
Vasos remarked, “We’ve always stated here that we’ll deliver our way when the time comes.” We think the time has come.
According to him, the business anticipates eventually bringing the product to thousands of outlets.
The Tennessee-based dollar store is recognizing the pressure from other stores like Walmart, Amazon, and Temu that provide low costs and convenience by offering same-day delivery. Because it provides curbside pickup and quicker home deliveries, Walmart, for example, has seen a major increase in its online business and has reported double-digit e-commerce gains in the U.S. for ten consecutive quarters.
Due to its strong emphasis on in-person sales, Dollar General, on the other hand, usually does not include updates or exact numbers regarding its e-commerce company in quarterly financial releases.
However, Dollar General has suffered over the previous year due to both its own strategy and economic issues. Due to the cumulative effect of high inflation, consumers have reduced their discretionary spending, especially in low-income households. Additionally, Dollar General has paid millions of dollars in fines for filthy stores and obstructed fire exits that became significant turnoffs for customers as well as worker safety issues.
The CEO of Dollar General has discussed losing market share to Walmart in recent months. At a September Goldman Sachs retail conference, Vasos said that the men in Bentonville, Arkansas, where Walmart has its headquarters, had a little bigger share of the middle-class consumer base.
According to Vasos, the business learned from its DoorDash deliveries, which are offered at around 16,000 of its locations, and started its own initiative.
According to Dollar General’s website, clients can choose which locations provide the new service, DG Delivery. Orders placed via the Dollar General app can be delivered in as little as an hour and have the same costs as in-store. Additionally, the service offers cash back benefits and takes digital coupons.
According to the website, DG Delivery does not seem to have a minimum order requirement or charge a fee.
Vasos stated during Dollar General’s earnings call on Thursday that the company is currently developing its online offering business plan but that it uses outside labor instead of retail staff or delivery drivers hired by the company. He claimed that since customers will use the app more frequently while placing orders, same-day delivery presents a chance to expand the retailer’s advertising revenue as well.
However, only a very small percentage of Dollar General’s locations still provide the option. It has over 20,000 stores nationwide, many of which are located in rural areas of the United States.
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