January 27, 2026
Photo courtesy of Dollar General
Can Dollar General Lead Rural Same-Day Delivery?
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.
BrainTrust
Tom Ryan
Managing Editor, RetailWire
Recent Discussions
Discussion Questions
What advantages and disadvantages does Dollar General have in competing for same-store delivery in rural markets against Walmart and Amazon?
How important is it for Dollar General to have a strong omnichannel offering to support its retail media and overall physical store business?
Poll
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Dollar General’s advantage is reach. It has a rural store network like few others, and this can facilitate fast delivery. Sensibly, Dollar General is using third parties to undertake fulfillment, so it does not incur the capital costs and logistical hassle of the last mile element. These advantages aside, Dollar General really has to make this move as the captive rural audience it has enjoyed for decades now has more options as Walmart and Amazon expand their own rapid delivery services into more rural locations. That’s a big potential threat and it is probably one of the factors that mean it may not lead on this in every location.
Let me get this straight: a business whose entire existence is based on selling items at the lowest possible cost to people who can’t afford any more – excited claims of “the rich are crowding dollar stores” notwithstanding – not only wants to offer delivery, but same day and (even) expedited delivery ?? I think we have a new definition of insanity.
A couple of considerations that will need to be overcome to make this a benefit to the communities Dollar General serves:
- Balancing in-store availability with online order demand
- Controlling third party delivery partners from surge pricing for distance (as well as availability)
If home delivery continually wipes out in store stock levels they risk losing in store customers to other retailers and if they are unable to fulfill home delivery customers they risk losing them to the other retailers with product availability.
For those very rural locations the challenge of having available drivers may be the greatest risk as there may be no local availability and drivers who are further away will not take on the orders or the services may add up charges for the distance.
Overall I do see this as a potential benefit for those in rural communities who may not have access to reliable transportation.
Competition for rural shoppers is good. Walmart and Amazon have made strong rural inroads the past two decades, becoming retail anchors by their presence alone. Dollar General gives customers more options for those who can’t get several miles or more into town. To earn more marketshare, they would be wise to not only message about their low prices, but also what makes their merchandise, variety and selection somehow different or better than the other two behemoths.
Dollar General’s dense store fleet — particularly its proximity to rural and small-town consumers — gives it a real geographic advantage in same-day delivery relative to Walmart and Amazon in many markets. Where big-box stores may be miles away, DG can offer faster local fulfillment for everyday essentials, which is highly relevant in communities that are often underserved by rapid-delivery options. That proximity is a powerful asset and, on paper, positions DG well to compete on convenience if execution is strong.
However, Walmart and Amazon bring significant structural advantages that Dollar General will have to overcome. Both already have a massive installed base of customers with apps on their phones, online accounts created, and habitual digital shopping behaviors, which dramatically lowers friction when launching or expanding delivery services. Walmart, in particular, has spent the last several years building robust omnichannel systems and store-based fulfillment infrastructure, including inventory visibility, pick-and-pack processes, curbside pickup, and last-mile partnerships. Dollar General, by contrast, is still earlier in its digital journey, and its limited staffing model and inconsistent in-stock performance create real risk that same-day delivery could become a source of frustration rather than a source of differentiation. If customers experience frequent out-of-stocks or delayed fulfillment, they will have little hesitation switching to competitors that already offer more reliable digital execution.
This is why a strong omnichannel foundation is not optional for Dollar General — it’s essential not only to support same-day delivery, but also to enable future retail media, personalization, and loyalty strategies tied to digital engagement. Proximity alone won’t win if the experience isn’t dependable. DG’s opportunity is real, but success will hinge on pairing its physical footprint with better inventory discipline, stronger store labor support, and faster digital adoption to close the gap with competitors who already enjoy deep customer relationships and mature fulfillment ecosystems.
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Dollar General’s advantage is reach. It has a rural store network like few others, and this can facilitate fast delivery. Sensibly, Dollar General is using third parties to undertake fulfillment, so it does not incur the capital costs and logistical hassle of the last mile element. These advantages aside, Dollar General really has to make this move as the captive rural audience it has enjoyed for decades now has more options as Walmart and Amazon expand their own rapid delivery services into more rural locations. That’s a big potential threat and it is probably one of the factors that mean it may not lead on this in every location.
Let me get this straight: a business whose entire existence is based on selling items at the lowest possible cost to people who can’t afford any more – excited claims of “the rich are crowding dollar stores” notwithstanding – not only wants to offer delivery, but same day and (even) expedited delivery ?? I think we have a new definition of insanity.
A couple of considerations that will need to be overcome to make this a benefit to the communities Dollar General serves:
If home delivery continually wipes out in store stock levels they risk losing in store customers to other retailers and if they are unable to fulfill home delivery customers they risk losing them to the other retailers with product availability.
For those very rural locations the challenge of having available drivers may be the greatest risk as there may be no local availability and drivers who are further away will not take on the orders or the services may add up charges for the distance.
Overall I do see this as a potential benefit for those in rural communities who may not have access to reliable transportation.
Competition for rural shoppers is good. Walmart and Amazon have made strong rural inroads the past two decades, becoming retail anchors by their presence alone. Dollar General gives customers more options for those who can’t get several miles or more into town. To earn more marketshare, they would be wise to not only message about their low prices, but also what makes their merchandise, variety and selection somehow different or better than the other two behemoths.
Dollar General’s dense store fleet — particularly its proximity to rural and small-town consumers — gives it a real geographic advantage in same-day delivery relative to Walmart and Amazon in many markets. Where big-box stores may be miles away, DG can offer faster local fulfillment for everyday essentials, which is highly relevant in communities that are often underserved by rapid-delivery options. That proximity is a powerful asset and, on paper, positions DG well to compete on convenience if execution is strong.
However, Walmart and Amazon bring significant structural advantages that Dollar General will have to overcome. Both already have a massive installed base of customers with apps on their phones, online accounts created, and habitual digital shopping behaviors, which dramatically lowers friction when launching or expanding delivery services. Walmart, in particular, has spent the last several years building robust omnichannel systems and store-based fulfillment infrastructure, including inventory visibility, pick-and-pack processes, curbside pickup, and last-mile partnerships. Dollar General, by contrast, is still earlier in its digital journey, and its limited staffing model and inconsistent in-stock performance create real risk that same-day delivery could become a source of frustration rather than a source of differentiation. If customers experience frequent out-of-stocks or delayed fulfillment, they will have little hesitation switching to competitors that already offer more reliable digital execution.
This is why a strong omnichannel foundation is not optional for Dollar General — it’s essential not only to support same-day delivery, but also to enable future retail media, personalization, and loyalty strategies tied to digital engagement. Proximity alone won’t win if the experience isn’t dependable. DG’s opportunity is real, but success will hinge on pairing its physical footprint with better inventory discipline, stronger store labor support, and faster digital adoption to close the gap with competitors who already enjoy deep customer relationships and mature fulfillment ecosystems.