“We saw a 60% year-over-year increase on [DoorDash’s] platform… and we just signed a deal with Uber Eats. By the end of the third quarter, we’ll have 14,000 stores up and running on that platform,” Vasos said.
Even more striking, Dollar General said more than 75% of orders are delivered in one hour or less, even in rural America.
“That is the fastest that we’ve seen out there across the spectrum so far, especially in rural America, where it is hard to reach many, many customers. So we believe that’s a competitive advantage for us, and will continue to be as we move forward,” Vasos added.
The scale-up has been swift and thorough. Dollar General now offers same-day delivery through DoorDash in over 17,000 stores, has created and expanded its own generic DG Delivery to nearly 6,000 locations, and expects to reach 16,000 by year-end, well ahead of earlier expectations. Its Uber Eats partnership, still in its early stages, has already launched in 4,000 stores.
Rural delivery isn’t just a play for convenience; for Dollar General it’s also drawing in wealthier customers.
“We’re seeing trade-in accelerating… not only our core customer but also mid- and high-income customers—all seeking value,” Vasos said.
Larger delivery baskets, often north of $20, point to incremental spending by those households, Kelly Dilts, Dollar General’s Chief Financial Officer, said during the call.
“Not only a strong 2.8% comparable sales number that we posted, but… sales were very balanced, as consumables and non-consumables contributed very nicely,” Vasos said.
In Q2, he added, Dollar General reported positive same-store sales across each of its three non-consumable categories, with increases of at least 2.5%, while its home products category logged its biggest quarterly same-store sales gain in more than four years.
The digital expansion is also reinforced by the DG Media Network, the company’s retail media arm, Vasos said. By leveraging unique data on rural shoppers, customers national CPG brands often struggle to reach, Dollar General is creating a digital revenue stream to complement its store growth.
