CEO Says Dollar General Is in ‘Second Inning’ of Digital Journey

Dollar General’s omnichannel push into the rural United States continues, with a strategy that emphasizes digital engagement, delivery and a boost to its brick-and-mortar footprint.

Sales in the third quarter were $10.6 billion, a 4.6% gain from last year, according to a Thursday (Dec. 4) earnings press release.

Guidance projected that net sales would grow by 4.7% to 4.9% in 2025, and same-store sales growth would be in the range of 2.5% and 2.7%, having grown by 2.5% in the third quarter.

Shares were 10% higher in early trading.

During a conference call with analysts, CEO Todd Vasos said Dollar General would push farther into rural U.S. areas, expanding its store footprint by 450 stores next year.

“We own rural America out there across the United States,” he told analysts.

In another prong of engagement with those rural customers, Vasos said the company is “in the second inning of our digital journey.”

Growing Market Share

Speaking about the general competitive environment, Vasos said

“We grew market share in both dollars and units in highly consumable product sales once again during the quarter, in addition to growing market share in non-consumable product sales,” Vasos said during the call. “…The average basket size essentially was flat. Within the basket, an increase in average unit retail price per item was offset by fewer items on average. This traffic and basket composition is consistent with what we have historically observed when our core customer feels more pressured on their spending, as they come in more often but have smaller basket sizes.”

The company has seen growth in its customer count, with “growth coming from higher-income households,” Vasos said.

“I would tell you that the low- and middle-income consumer continues to be stretched,” he said during the call. “She is definitely being very mindful of where she shops and what she shops for, making trade-offs at the shelf in many instances.”

In his own remarks on the call, Chief Financial Officer Donny Lau said inventory was down 6.5% year over year, and the company has been successful in “reducing inventory while driving sales and improving in-stock levels. Overall, we’re pleased with our inventory position as we enter this important holiday shopping season.”

In discussing the 450-store push through the next year, Vasos said: “Looking ahead to 2026, we are uniquely positioned to serve an underserved customer in rural America, where approximately 80% of our current store base serves towns of 20,000 or fewer people.”

Among category expansions, the firm offers fresh produce in 7,000 stores and plans to expand those products into an additional 200 stores next year, he said.

“Collectively, we believe these projects will further solidify Dollar General as the essential partner in communities in rural America, both in our physical store locations as well as with an expanding digital reach, all while strengthening our foundation to drive long-term sustainable growth,” he said during the call. “…Our digital capabilities include an engaging mobile app and website that continues to be very popular with our customers and have expanded our delivery capabilities while growing our DG Media Network. We have significantly expanded the reach of our delivery options available to customers.”

A partnership with DoorDash now serves 18,000 stores and is driving additional sales growth through same-day delivery and digital engagement, Vasos said.

“We are seeing larger basket sizes than the average in-store transaction and a very strong repeat visit rate from customers on our delivery platform,” he said.

There’s growth potential in the DG Media Network, with year-over-year growth in retail media volume, he said.

“Our digital advertising business continues to see double-digit growth in 2025, driven by new DG Media Network capabilities on our site and within our app, and we believe we are still in the early stages of the potential financial contribution from this initiative,” he said during the call.

Vasos told analysts during a question-and-answer session that “I would tell you our digital journey in totality is probably just in the second inning.”