Dive Brief:
- Dollar General is expanding the reach of its same-day delivery offering through the DG app and website, the discount retailer announced Thursday.
- Shoppers can now order items from more than 17,000 locations through the MyDG Delivery service, according to a company press release.
- Through same-day delivery, Dollar General aims to reach customers in underserved communities, particularly in rural areas. Three-fourths of the U.S. population lives within five miles of a Dollar General location, the retailer said.
Dive Insight:
Dollar General’s delivery expansion is part of the retailer’s broader digital strategy.
The discount retailer has already partnered with Uber Eats and DoorDash for deliveries. Now that the company has surpassed 7 million monthly active users, it aims to personalize its user experience and generate higher returns for brand partners within its DG Media Network, the company noted in its press release.
“MyDG Delivery is helping bridge the digital gap by extending same‑day delivery to rural communities nationwide,” Lydia Thacher, vice president of digital commerce at DG, said in a press release. “We are proud to offer a service that not only brings convenience to our existing customers but also introduces new customers to the Dollar General brand through a frictionless digital experience.”
As Dollar General reaches out to its rural customers, other major retailers are connecting with an even greater swath of American shoppers through speedy delivery services.
Walmart said it could reach 93% of U.S. households through its same-day delivery service as of Q4. It reached that milestone after offering same-day delivery to more than 80% of the U.S. population as of October 2023.
Amazon is also setting its sights on rural customers. Last May, the company said it planned to pour $4 billion into its delivery network and speed up shipping to customers in rural areas. The following month, the company said it would offer same-day and next-day delivery to more than 4,000 small towns and rural communities by the end of last year.
Dollar General’s delivery expansion follows a successful third quarter. In Q3, the retailer reported a 4.6% increase in net sales year over year to $10.6 billion. Its comparable sales saw a 2.5% bump, and net income surged 43.8% to $282.7 million compared to the year-ago quarter.
