Photo courtesy of Dollar General
Dollar General announced that it’s expanding the reach and capability of myDG Delivery, with same-day delivery now available in more than 17,000 stores through the DG app and website.
The discounter is also offering expedited delivery in one hour or less for an additional “$1 ASAP” fee. To mark the expanded options, Dollar General is offering free delivery on one order from Jan. 20 through Feb. 28.
Dollar General only began testing same-day delivery in a partnership with DoorDash in late 2024, with Dollar General now also supported by a recent collaboration with Uber Eats, which services over 17,000 stores.
On Dollar General’s third-quarter analyst call, Todd Vasos, CEO, said Dollar General is seeing larger basket sizes than the average in-store transaction and “very strong” repeat visit rates from customers using delivery.
He estimates the Dollar General overall digital platform, including in-store pickup, is bringing in more than 70% incremental business. Basket sizes are indicating digital is engaging “a different type of customer than our core, but also that we're starting to see more signs of a stock up versus what we normally see inside of our brick-and-mortar of a fill-in.”
The increased digital engagement is also driving advertisers to its fledging in-house retail media platform, DG Media Network, which reaches more than 7 million monthly active users and roughly 90 million addressable customer profiles.
Vasos further said that with approximately 75% of the U.S. population living within five miles of a Dollar General, the retailer is well situated to serve rural communities “underserved” by competitors.
“We own rural America out there across the United States,” said Vasos. “And today, even in the second inning that we're in, over 70% of our orders that are done are delivered to an individual's front door in an hour or less, even in rural America. And that is a strong proposition that no one's been able to touch.”
Dollar General To Compete With Amazon (and Walmart) For Rural Delivery Business
Competition in rural regions is coming from Amazon, which last June announced plans to expand its same-day and next-day Prime delivery service to over 4,000 smaller cities and rural regions in the U.S. by the end of 2025, likewise promising delivery “within hours.”
Amazon said, “This expansion goes beyond speed — it’s about transforming daily life for rural customers, who typically live farther from brick-and-mortar retailers, have fewer product and brand choices, and face limited delivery options when shopping online.”
Last April, Amazon announced plans to spend over $4 billion by the end of 2026 to triple the size of its rural delivery network, including adding more than 200 delivery stations in rural areas.
Walmart also set a goal to be able to deliver to 95% of Americans within three hours by the end of 2025. With over 90% of Americans living within 10 miles of a Walmart store, the blue-and-yellow brand is seen having an edge over Amazon in delivering perishables.