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Dollar General
-
Headquarters
100 Mission Ridge, Goodlettsville, 37072, Tennessee, United States -
Annual Global Sales
$37,845,000,000
Total U.S. Sales
$38.7 billion in net sales in fiscal 2023 (ended Feb. 2, 2024)
Total U.S. Stores
20,022 stores in 48 states (as of March 1, 2024)
Shopper Count
32 million weekly
Key Facts
- Average shopper transaction is $12 and about five items
- Average trip length is 10 minutes
- First retailer in the dollar store channel to launch a scan & go mobile application
- The chain's core customers make about $40,000 a year per household, more than $20,000 below the national average
- Ranked No. 106 in Fortune magazine's “Fortune 500” list in 2022
Key Executives
- Chief Executive Officer: Todd Vasos
- Chief Financial Officer: Kelly Dilts
- Chief Medical Officer: Albert Wu
- EVP, Chief People Officer: Kathy Reardon
- EVP, Store Operations and Store Development: Steve Deckard
- EVP, Chief Merchandising Officer: Emily Taylor
- EVP, General Counsel: Rhonda Taylor
- EVP, Chief Information Officer: Carman Wenkoff
- EVP, Global Supply Chain: Rod West
- SVP, Chief Marketing Officer: Tony Rogers
- SVP, Chief Accounting Officer: Anita Elliott
- SVP, Private Brands and Global Sourcing: Jackie Li
- SVP, Technology: Shweta Bhatia
- SVP, Finance: Amanda Mathis
- SVP, Corporate Store Operations: Zak Brining
- SVP, Store Operations: Tracey Herrmann
- SVP, Store Operations: Lee DeVille
- SVP, Transportation: Jeff Rudy
- SVP, Human Resources: Leslie Allen
- SVP, Corporate Secretary and Assistant General Counsel, Securities and Governance: Christine Connolly
- SVP, Assistant General Counsel, Business Law: Kelly Collier
- SVP, Assistant General Counsel, Employment: Melanie Cook
- SVP, Procurement and Margin Improvement: Rich Szellan
- SVP, Margin Planning and Analytics: Brian Haug
- SVP, Distribution: Amanda Martin
- SVP: Popshelf: Pooh Vichidvongsa
- Managing Director, Mexico: Macedonio Garza
- Market Position and Strategy Overview
- Must-Know Terms
- Promotional Strategy
- Merchandising
- Collaborative Alliances
- Displays and Signage
- In-Store Media
- Store Formats/Growth
- Special Departments/Services
- Customer Segments
- Internet Marketing
- Retail Media
- Mobile Marketing
- Social Media
- E-Commerce
- Circulars
- Loyalty Programs
- Private Label
- Cause /Community Programs
- Advertising Strategy
- Solution Providers
- Sponsorships
- Marketing Expenditures
Market Position and Strategy Overview
Market Position and Strategy Overview
Dollar General is the most ubiquitous chain in the nation, with 20,000 stores (and counting) in 48 states — thanks to its Feb. 24, 2024 opening of a DG Market location in Alice, Texas. The retailer continues to focus on growth, more recently opening its first Montana store in late 2023. For 2024, Dollar General initially planned 800 new store openings, 1,500 remodels, and 85 store relocation. After first quarter 2024 results, the retailer adjusted its plans, to 730 new stores and 1,620 remodels — a more subdued pace compared to 2023's goals, which included opening 900 new stores, remodeling 2,000 and relocating 120. Dollar General cited rising shrink and slowing sales as factors in dialing back its expansion plans. In fiscal 2023, the retailer opened 987 stores, and closed 105, for a total of 882 net new stores.
Dollar General continues to focus on emerging markets, including expanding into Mexico (for 2024 it plans to open approximately 15 new stores there) and growing its DG Wellbeing formats. The expansion of its Popshelf format is being dialed back somewhat as customers spend less on non-essentials, but the retailer still plans to open about 30 Popshelf stores in 2024.
About 20% of its inventory is priced at $1, which Dollar General has said it has no plans to shelve. In fact, it says it’s more likely to grow its $1 SKUs, especially after products retailing for $1 or less have experienced strong sales.
The retailer continues to focus on addressing distribution center capacity constraints while it also reduces the number of outside storage facilities. Its goal is to optimize inventory levels and improve operational efficiencies and productivity throughout the supply chain.
Dollar General is also working on opening new distribution hubs to support its DG Fresh initiative. In recent years, Dollar General has begun selling more groceries and fresh produce, meeting its goal to sell fruits and vegetables in 5,000 stores by January 2024. Helping that along is the planned construction of a 1.2 million-square foot distribution center in North Little Rock, Arkansas. The retailer has stated it eventually wants 10,000 of its stores to sell fresh produce and meats, particularly in rural areas and other food deserts. It's also selling more health and wellness SKUs and accepting health supplemental benefits chainwide.
The abundance of Dollar General locations – one within five miles of 75% of the U.S. population – allows the retailer to compete by offering convenience along with low prices. The retailer is also trying to fight negative perceptions of the dollar channel by working with major CPGs for exclusive promotions and SKUs, while is investing in training store managers to improve customer experience.
Dollar Tree's Family Dollar is Dollar General's primary competitor, though it also fights for trips with mass merchants and drug stores. The retailer has taken aim at grocery stores through its Dollar General Plus format, which offers fresh meat and produce. The retailer is experimenting with expanding those categories along with frozen foods and health & beauty products at its other stores in order to increase share of wallet. The results have been extremely positive, with food-focused stores generating three or four times the sales of other locations.
Must-Know Terms
Must-Know Terms
- DG Digital Coupons: While Dollar General doesn't have a loyalty program, it allows consumers to create an account through dg.coupons.com and select coupons, which they can use in store by entering their phone number. The program has 10 billion subscribers and is incorporated into most of the retailer's promotions and many account-specific displays.
- Dollar General Literacy Foundation: The retailer's nonprofit is focused on encouraging reading programs and staying in school. Dollar General regularly seeks CPG sponsors, promoting the partnerships with in-store and digital activity.
- DG Go!: A mobile application that allows shoppers to scan products as they shop and pay at self checkout.
- Value Valley: A central aisle stocked entirely with $1 SKUs.
Thought Starters
- Dollar General's food-focused remodeled stores have been extremely successful, so expect the category to continue to grow in importance.
- The retailer is undertaking an aggressive growth strategy, with plans to open 900 stores in 2018.
- Dollar General has shifted its sports sponsorships from NASCAR to college football and manufacturers have the opportunity to get involved with its events and related programs.
Promotional Strategy
Promotional Strategy
Dollar General has met the challenge of Dollar Tree by pricing more of its SKUs at $1, with a particular focus on selling national brands at the price point. The goal is to increase trial and brand acceptance and eventually get shoppers to trade up. Nearly 49% of baskets contain a SKU priced at $1 or less and those baskets are nearly $3 higher than average. More than 80% of SKUs the retailer sells are $5 or less.
The retailer is endeavoring to drive traffic and increase marketing share through lowering the cost of consumables. In recent years it reduced the prices of hundreds of bestselling SKUs at more than 2,000 stores by an average of 10%, touting the change through signage, circular features, email and digital coupons. The change resulted in same-store sales growth and the retailer expects to continue cutting prices across items and categories and in more markets. The prices of the discounted items are on par with mass merchants, about 20% lower than grocery stores and more than 40% lower than drug stores.
It also has embarked upon a "Food First" initiative that includes more investment in its Clover Valley private label as well as expanding its produce selection.
Promotions remain an important part of the retailer's strategy.
For the 2023 holidays, Dollar General rolled out a Decked Out in Deals event, where it:
- held DG Deal Days — three-day weekend sales featuring both seasonal and everyday items;
- offered digital coupons, DG Cash Back, personalized deals and early access to new products and sales via its app;
- offered recipe-centric bundle deals on ingredients for traditional holiday dishes;
- priced more seasonal SKUs including ornaments, decor, gift wrapping supplies, toys, stocking stuffers, candy and crafting supplies at $1; and
- launched digitally immersive holiday and toy landing pages on its website.
Ongoing/Periodic Programs
- Military Discount: Monthly one-day promotion offering 11% off to veterans and active military duty.
Merchandising
Merchandising Strategy
Dollar General stores carry 10,000 to 12,000 SKUs in four broad categories:
- Consumables: paper and cleaning products, packaged food, perishable food and beverages, packaged snacks, health and beauty products, pet care and tobacco. The retailer continues to grow its private label assortment, particularly food SKUs.
- Seasonal: toys, batteries, small electronics, greeting cards, stationery, prepaid phones and accessories, gardening supplies, hardware, automotive and home office supplies.
- Home products: kitchen supplies, cookware, small appliances, storage containers, light bulbs, picture frames, candles, craft supplies and soft goods.
- Apparel: casual clothing for infants, toddlers, girls, boys, men and women along with socks, disposable diapers, underwear, shoes and accessories.
In 2023, the retailer piloted its Beauty Reinvention initiative, with plans to revamp approximately 300 stores. Changes include more square footage dedicated to the beauty category, beauty bars to spark "treasure hunts," expanded hair care and color sections, and more than 1,000 SKUs, including exclusives (see Private Labels) catering to shoppers with sensitive skin, self-care, curly and textured hair demands.
In terms of food and beverage, in some locations, the retailer currently offers the top 20 items typically sold in grocery stores, including, milk and dairy products, bread, frozen and canned vegetables, canned fruits, and grains, along with approximately 80% of produce categories carried by most grocers. Some Dollar General locations also offer beer and wine, and with the addition of more cooler doors (see below) have been able to offer cold beer.
The goal is to offer an assortment that drives frequent trips while minimizing the need to shop at other retailers. Packages tend to be smaller, with prices close to those found in bulk buys at other retailers.
Stores carry a wide selection of national brand products along with value-focused private labels. More than 80% of items cost $5 or less. The majority of products sold in Dollar General stores are priced above $1 with approximately 25% of products priced at $1 or less. The retailer continues to add more merchandise in the $3 to $5 range and grow its SKUs, focusing on a mix of private labels and savings opportunities.
DG Fresh
In 2021, Dollar General completed its DG Fresh rollout across all stores, which allows the company to distribute frozen and refrigerated items in-house. With the initial phase of DG Fresh, the company hopes to drive down costs and open up the opportunity for fresh produce in stores. Through DG Fresh, the retailer is distributing frozen and refrigerated items to 18,000 stores from 12 facilities. DG Fresh is the largest contributor to the gross margin benefit the company is realizing from higher inventory markups.
Dollar General’s related cooler expansion program also was targeted to provide stores with approximately 65,000 cooler doors in 2021. The majority of the doors are for high-capacity coolers that will allow the company to adopt a broader product selection of perishable items. Traditional formats feature 22 cooler doors per location; enhanced traditional “plus” formats have an increased focus on fresh and feature 36 cooler doors in each location; and the retailer’s 100 largest stores were remodeled in 2021 to each include 50 cooler doors and space for meat and produce. Dollar General plans to add 65,000 cooler doors to its stores systemwide in 2023.
Currently, fresh produce is available at 5,000 of the company’s 19,000-plus stores, with the goal of expanding fresh produce up to 10,000 stores over time.
DG Wellbeing
A move to establish Dollar General as a health destination, the initial focus of DG Wellbeing is increasing the assortment of cough and cold, dental, nutritional, medical, health aids, feminine hygiene products and other health items. Updated stores amount to more than 7,000 of Dollar General’s 20,000 locations, devoting 30% more feet to healthcare selling space and stocking approximately 300 more items relative to standard stores. Also part of the retailer's health track: More produce in stores. In January 2024, Dollar General was selling fresh fruits and vegetables in more than 5,000 stores.
In previous years, some Dollar General locations also redesigned their snack and beverage aisle, with some stores expanding their assortment of healthier products, including their Good & Smart snack brand, with a focus on high protein and low salt.
Collaborative Alliances
Collaborative Alliances
Dollar General is extremely receptive to manufacturer-driven campaigns. Email blasts regularly deliver recipes and digital coupons for leading CPGs while account-specific displays promote sales. Instant-win games and purchase incentives that build loyalty and basket size are also common. Activity has included:
- A 2023 partnership with Hershey Co.'s Reese's on an instant-win game on Dollar General's mobile app
- A 2017 holiday rewards program and 2018 Easter sweepstakes with PepsiCo/Frito-Lay.
- An annual "Smart Plays for Game Day" rewards program with Dr Pepper Snapple Group's Dr Pepper during football season.
- Dollar General and Mondelez International's Sour Patch Kids offered a free pair of branded sunglasses with the purchase of two SKUs during summer 2017.
The chain also works with manufacturers to obtain exclusive SKUs, using account-specific displays to promote new products. Among recent exclusives:
- Unilever 's Yes! Honey, a clean beauty hair care brand.
- Kao USA's Joy Works skincare.
- High Ridge Brands' Curl Rhythm haircare.
- Maesa's Believe Beauty makeup, fragrance, nail and skincare SKUs.
- The retailer stocked Hostess Brands "star spangled" Ding Dongs ahead of the Fourth of July.
- Dollar General received an exclusive overlay to Coca-Cola Co.'s "Share a Coke" platform in 2017 and 2018, with the brand providing military-themed cans.
Prospective vendors can share information about their products with the retailer's category managers at rangeme.com/dollargeneral. In 2023, the retailer issued a call for diverse suppliers, inviting them to apply at rangeme.com/dgdiversity23.
In January 2024, Dollar General expanded its partnership with Shelf Engine. The AI company provides retailers with technology that forecasts the shelf life of perishable foods, thereby optimizing ordering and stock levels.
Displays and Signage
Displays and Signage
Due to small store sizes, Dollar General is restrictive in the types of displays it carries, often focusing on shelf trays, floorstands, dump bins, sidekicks, shelf signs, power wings and cooler clings, though seasonal account-specific programs enjoy spectaculars.
The chain receives a significant amount of customized P-O-P materials from brands that tout coupons, rewards programs, exclusive SKUs, cause campaigns and purchase incentives. The retailer also customizes national displays by applying bright stickers that clearly identify the price of products.
The retailer's own displays tend to be simple, with shelf strips and shelf trays spotlighting seasonal products and basic floorstands or dump bins merchandising private label SKUs. Endcap displays emphasize the retailer's low prices. Signs also broadcasts that the retailer accepts SNAP and EBT benefits.
Stores with expanded beauty departments have "Beauty My Way" permanent endcaps stocked with value-priced cosmetics items. Both PepsiCo and Coca-Cola Co. have earned permanent endcaps in some stores with built-in coolers stocking grab-and-go drinks and signage changing to spotlight various promotions.
See the Retail Receptivity Chart below for a rundown of Dollar General's tactical P-O-P preferences.
Merchandisers |
|
Endcap Displays |
Sometimes Used |
Shelf Trays/PDQs |
Often Used |
Pallets |
Sometimes Used |
Floorstands/Shippers |
Often Used |
Dump Bins |
Often Used |
Power Wings/Sidekicks |
Often Used |
Category Management Systems |
Sometimes Used |
Spectaculars/Lobby Displays |
Rarely Used |
Racks |
Often Used |
Secondary Refrigerated Displays |
Sometimes Used |
Signage/Media |
|
A-Boards |
Rarely Used |
Balloons |
Sometimes Used |
Base Wrap |
Rarely Used |
Ceiling Signs |
Sometimes Used |
Checkout Ads |
Rarely Used |
Checkout Dividers |
Rarely Used |
Circular Rack Ads |
Rarely Used |
Cooler Clings |
Often Used |
Counter Cards |
Rarely Used |
Demonstration/Sampling Kits |
Rarely Used |
Digital Signage Ads |
Rarely Used |
Endcap Signage Kits |
Sometimes Used |
Floor Clings |
Often Used |
Header Cards |
Sometimes Used |
At-shelf Product Demo/Sample |
Sometimes Used |
In-line/Category Headers |
Rarely Used |
In-Store Radio |
Rarely Used |
In-Store Media
In-Store Media
Dollar General is building up its in-store media solutions for its brand partners through an expanded partnership with Neptune Retail Solutions (NRS). The retail marketing firm is now the exclusive in-store media provider for the discount retailer. The partners are teaming to introduce proprietary solutions that raise brand visibility and awareness, influence customers and better connect digital and in-store experiences. The collaboration brings new signage on front-of-store bollards, security pedestals and basket liners as well as in-aisle category engagements such as shelf talker signs and coupon tear pads.
Store Formats/Growth
![a group of people in a store](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2022-07/popshelf_061_low.jpeg)
Store Formats/Growth
Currently, Dollar General is the largest U.S. retailer by store footprint, opening store number 20,000 in Alice, Texas, in February 2024. In 2023, it opened its first store in Montana, which extended its footprint to 48 states. At least two more stores are under construction in Montana, as well. Due to shrink and slowing sales, Dollar General has eased off on its expansion plans somewhat, but still intends to open 730 new stores (trimmed from its initial plan of 800) remodel 1,620 (up from 1,500) and relocate 85 in 2024.
It also plans to expand internationally. The retailer opened its first Mexican location in the first quarter of 2023 — a Mi Super Dollar General in Escobedo, Nuevo Leon. In 2024 it plans to open approximately 15 stores in Mexico.
For 2023 (ending Feb. 2, 2024), the retailer opened 987 stores and closed 105, for a total of 882 net new stores. In 2022, Dollar General added 974 stores to its footprint (1,039 new stores, and 65 closures) for the fiscal year ending Feb. 3, 2023. Most of the additions are concentrated in the South, Southwest, Midwest and East Coast.
Like many dollar stores, it often opens shops in disenfranchised areas.
Self-Checkout Changes
In response to increased shrink in 2023, Dollar General is making key changes to its self-checkouts, including removing them from 12,000 stores in the first half of 2024. Stores with self-checkout are limiting transactions to five items or less.
The retailer is also reducing inventory, incorporating incentive programs for store managers to lessen shrink, instituting shrink rationalization, and using high-shrink planograms in an effort to minimize losses. (One Grabango study found self-checkout contributes to 3.5% of sales losses.)
Traditional
Some 12,500 of the retailer’s stores are in its traditional format, which historically was 9,100 square feet in size and carried 11,000 SKUs on their 7,300-square-foot sales floor. Dollar General has been increasing the size of its standard store format builds, ranging from 8,500 to 9,500 square feet of sales space to make room for expanded selections of food, including fresh produce and meat; a larger health and beauty section; and a redesigned checkout area. This larger format, dubbed Dollar General Traditional Plus, will serve as the base prototype — along with the existing Dollar General Plus format (see below) — for most new stores going forward. These allow for expanded high-capacity cooler counts.
Small Format
The retailer also operates about 250 smaller stores, with less than 6,000 square feet of selling space. These are located in densely populated metropolitan areas but Dollar General also believes the format can work in rural areas with smaller numbers of households where it could be the town's only store.
Dollar General Plus
The banner has approximately 350 locations, which each have 34 cooler doors used to stock and expand perishables assortment. The selection is meant to drive traffic rather than sales. Stores average 9,000 square feet in size.
DGX
The retailer began testing this small-format convenience store concept in 2017 and currently operates 29 locations in 16 states. The 3,600-square-foot stores offer fountain sodas, grab-and-go sandwiches, coffee, candy and snacks along with pet supplies, household cleaning products, health and beauty items, electronics and seasonal SKUs. The goal is to use the format to expand into major cities and densely populated suburbs and to appeal to Millennial shoppers.
Popshelf
Dollar General is scaling back on plans to accelerate Popshelf store openings — but still plans on opening 30 new stores in 2024 — as consumers cut back on non-essential spending. Dollar General debuted the Popshelf concept in 2020 and opened its 100th store in November 2022, operating in nine states. More than 30 of those are store-within-a-store formats, which combine the offerings of Popshelf with DG Market (see below).
Popshelf aims to attract a different demographic than Dollar General’s traditional rural shoppers, targeting suburban women with an annual household income between $50,000 and $125,000. The store concept aims to engage shoppers with a fun, affordable and "stress-free" experience where they can find items such as on-trend seasonal and home decor, health and beauty must-haves, home cleaning supplies, arts and crafts, party goods, and entertaining needs. The vast majority of the items within the store are priced at $5 or less.
Dollar General Market
These stores are approximately 16,000 square feet in size and served as the model for the rollout of fresh meat and produce to the retailer's other formats. They account for approximately 1% of the total chain.
Cashierless Checkout
Dollar General is testing cashierless technology at a Banner Elk, North Carolina store. The retailer is working with AiFi's autonomous store platform to power grab-and-go technology. Customers can walk in and out with their purchases.
Special Departments/Services
Special Departments/Services
As part of its DG Wellbeing initiative, Dollar General is piloting mobile clinics at three Tennessee stores in partnership with mobile health provider DocGo. The clinics are hosted in vans in store parking lots, offering basic, preventative and urgent care services, along with lab testing. The retailer plans to expand this offering to other stores.
The retailer operates 37 fueling stations at stores that were formerly Walmart Express locations.
Customer Segments
Customer Segments
Dollar General customers tend to be low wage earners or consumers on fixed incomes whose real incomes haven't risen in more than a decade even as expenses for healthcare and housing have steadily increased. Many of them rely on government assistance, meaning that the retailer has been negatively impacted by cuts in food stamp programs in recent years. Some 57% of Dollar General’s clientele live in households with income of less than $49,900, according to research firm Kantar, and 30% get by on less than $25,000.
Dollar General can also attract high-income customers because its inventory includes value items from national brands that aren’t necessarily at the strict $1 price point. Store concept DGX was born from Dollar General’s customer research that revealed a Millennial shopper on the company’s customer segmentation for the very first time in 2016. The retailer has since rolled out nearly 30 DGX stores.
Data from GlobalData Retail shows that higher-income shoppers go to Dollar General seeking value and convenience. Moreover, the new shoppers brought to Dollar General during COVID-19 crisis have ranged across the income spectrum, according to the firm.
The chain caters to a heavily rural clientele — about 75% of Dollar General’s existing stores are in small towns and rural areas. The retailer positions itself as a convenient alternative to more distant supermarkets and big box retailers. About three-quarters of U.S. residents live within five miles of a Dollar General store.
Dollar General's recent data suggests an increase in new customers. These new customers, according to the retailer, tend to skew younger, higher income and more ethnically diverse.
Dollar General's Popshelf store concept was created to initially target shoppers that are primarily female and are located in diverse suburban communities with a total household annual income ranging from $50,000 to $125,000.
Internet Marketing
Internet Marketing
Dollar General has a robust digital presence that focuses on both increasing e-commerce activity (see "E-Commerce Strategy") and driving store trips by promoting deals and delivering coupons.
Dollargeneral.com: The home page of the retailer's website uses a carousel ad to spotlight seasonal promotions along with the retailer's private labels and e-commerce promotions. Regularly rotating display ads on the page provide additional space for the same activity.
Dollar General uses seasonal web pages to promote relevant products and offer tips and recipes, some of which are sponsored by major brands. The website also has a series of permanent areas — "DG Baby Center," "DG Beauty Zone," "DG Pet Center," "DG Health Checklist" and "For the Home" — that each provide articles and video from major brands along with linking to e-commerce pages and digital coupons for category SKUs.
Other notable areas of the site include:
- The "Coupon Center," which presents about $150 to $250 worth of printable coupons (via Coupons.com) that change weekly. While the focus is mostly on national brands, the retailer regularly also drops time-sensitive generic coupons to build baskets, such as $5 off a $25 purchase.
- "DG Easy Meals," a searchable database of hundreds of recipes that spotlight products from national brands and/or private labels. The landing page has a carousel ad spotlighting new branded recipes.
- The digital circular, which is basically a copy of the print tab. Visitors click on items to add them to a printable shopping list or, in certain cases (see "E-commerce Strategy") buy them online.
- "DG Better For You" spotlights dietitian-approved and -curated healthier food choices and recipes. In stores, shelf tags identify qualifying items. Online, SKUs are designated as "Better For You." Both Dollar General's private label products and national brands like PepsiCo's Quaker Oats or The J.M. Smucker Company's Jif peanut butters are featured. In early 2023, the retailer teamed with dietitian Mary Alice Cain and Delish magazine to create five new Better for You recipes, with most ingredients available at Dollar General locations.
E-mail: The chain sends email blasts about five times a week. Emails support major promotions but primarily link to the digital circular and DG Digital Coupons and deliver exclusive coupon codes focused on e-commerce. Brands can buy ad space in or even entire emails that link to recipes or e-commerce pages within dollargeneral.com.
Retail Media
Retail Media
Launched in 2018, the retailer's retailer media network, DG Media Network (DGMN), taps into data from more than 90 million active DG shopper profiles and 2 billion-plus transactions a year. The network gives CPG brand advertisers:
- access to real-time data,
- the ability to reach more than 90 percent of active DG customers through paid media, and
- the opportunity to engage with hard-to-reach, rural shoppers potentially overlooked with traditional digital marketing tactics (75% of DG stores currently serve markets with a population of 20,000 or less).
DGMN’s strategic partners include:
- The Trade Desk, the largest independent demand-side platform,
- Live Ramp for data collaboration, including advanced data clean room capabilities,
- Google Ad Manager for onsite and in-app inventory management, and
- Goodway Group for digital media strategy, planning and buying.
Through these partnerships, the network aims to offer a proprietary audience-centric solution, rooted in transparency, delivering closed-loop 1:1 measurement, insights and reporting that identifies both attribution and incrementality.
Dollar General continues to grow its retail media network reach. DGMN partnered with Meta in 2023 to give advertisers a platform for reaching DG customers via Facebook and Instagram News Feeds, Stories and Reels. The retailer also worked with data collaboration platform LiveRamp to provide Dollar General and its CPG partners with a stronger understanding of rural audiences where internet access is not always so readily available. In 2024, Dollar General partnered with Criteo. The commerce media company provides support to the retailer's onsite sponsored ad offerings; later in the year it will extend access to newer ad formats.
Trends Report
For the past five years, the Path to Purchase Institute has asked brand marketers to rate the retailer media networks with which they work based on their relative strengths across multiple key metrics for the magazine's annual Trends Report. According to results from the 2024 report, DG Media Network’s data sharing rated “fair/poor” among 70% of respondents, while traffic-driving capabilities fared somewhat better, with slightly more than half deeming it “good” or better. (See chart below.)
![dollar general 2024 retail media](https://assets1.p2pi.com/s3fs-public/styles/hero/public/2024-01/dollargeneral.png)
Key Facts
The chart below has information compiled by The Mars Agency. It is published as part of THE AGENCY'S quarterly Retail Media Report Card, with input provided by the retail media networks
![Dollar General Retail Media Mars Agency](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2023-03/dgmnrmnmars.png)
Mobile Marketing
Mobile Marketing
The Dollar General mobile application provides users with:
- Unique mobile coupons that users can select and redeem by scanning their phone at checkout.
- Access to the DG Digital Coupons program, though those coupons are still redeemed by entering their phone number at checkout.
- A store locator.
- A mobile-friendly version of current circulars.
- A mobile version of the retailer's e-commerce section.
- Push notifications that provide exclusive offers and savings.
- Additional offers for consumers who enable geo-targeting.
Dollar General also offers a DG GO! app at select sores that allows shoppers to scan products and pay with their phones through a dedicated tablet at checkout. The app shows the price of each SKU and a running total of items scanned. Digital coupons are automatically applied and the app informs shoppers of additional discounts or promotions for scanned products. The pilot began in 2018. Some stores have a CartCalculator option that allows customers to scan items, check out, and pay via their phone, bypassing the need to wait in line.
Text message: To reach consumers without smartphones, the retailer has a mobile alerts program that sends texts communicating coupon offers and other promotions.
Social Media
Social Media
Facebook: 3.3 million followers (as of April 2023)
Updates are posted daily and used to tout new products and cause campaigns, run sweepstakes, highlight seasonal products, and link to circulars and e-commerce pages.
The Dollar General Market banner has its own page with approximately 45,000 followers (as of April 2023). Posts tapered off in mid 2022, but prior to that activity focused plugging deals on fresh foods or seasonal posts (with product suggestions to help).
Twitter: 89.2k followers (as of April 2023)
Activity somewhat mirrors Facebook's, but also focus on causes Dollar General supports as well as promotions, sales and services (like being able to pick up and drop off FedEx packages at the retailer).
Pinterest: 34.7k followers (as of April 2023)
Boards mix seasonal occasions, such as "Easter basket ideas" and "Need ideas for Mother's Day?" with evergreen subjects and link to e-commerce pages, digital circulars, craft projects and blog posts on the retailer's website.
Instagram: 264k followers (as of April 2023)
Posts several times a week to promote specific categories, national brands, private labels, cause campaigns and craft ideas.
YouTube: 7.37k subscribers (as of April 2023)
Posts videos sporadically, but in recent months the focus primarily has been on hair and beauty.
E-Commerce
E-Commerce
Dollar General allows shoppers to buy products to be shipped to their home through dollargeneral.com. Categories include pet care, apparel, packaged foods, baby items, office supplies and cleaning products, though some items such as frozen foods and cat littler are only available in stores. The chain encourages use by regularly offering free shipping via promo codes distributed through email blasts. Display ads on the retailer's home page promote new products available for online purchase and bestselling e-commerce items.
The retailer also operates a DG AutoDeliver auto replenishment service that allows subscribers to have frequently used products sent to them on a designated schedule. Members receive 5% off each reoccurring order and free shipping on automatic orders costing $25 or more.
For the 2023 holidays, the retailer has launched digitally immersive holiday and toy landing pages that include interactive guides and shoppable links.
DoorDash
Inked in 2021, a partnership with DoorDash enables delivery from some 9,000 stores, with plans to expand to 10,000 locations by December 2021. The move follows a 600-store pilot executed in August 2021.
Circulars
Circulars and Publications
Sales date: Sunday to Saturday
Dollar General distributes circulars on a near-weekly basis, but through News America Marketing's SmartSource co-op advertising program rather than as stand-alone newspaper inserts.
The circulars typically run eight pages and spotlight a mix of general merchandise and seasonal products along with private labels and national brands spanning packaged food, cleaning supplies, personal care items, non-alcoholic beverages and pet products. Pre-paid cellphones also get regular features. Dollar General often uses its circular features to support brand-driven promotional programs including digital coupons, bulk-purchase incentives and exclusive SKU introductions.
Along with the tabs, Dollar General also distributes a monthly circular devoted exclusively to cellular phones and prepaid phone service provider TracFone. The retailer also releases periodic booklets to promote seasonal needs or apparel. These span six to 48 pages and are primarily focused on generic products. Deals in the booklets are valid for between one and two months.
Dollar General releases issues of Beauty Cents magazine in spring and fall both in stores and in the "Current Ad" section of dollargeneral.com. Focused on health and beauty, the roughly 50-page magazines contain a mix of articles and coupons, with much of the content promoting specific brands.
Loyalty Programs
Loyalty Programs
Dollar General does not quite operate a loyalty or frequent-shopper program, but it has teamed with Ibotta Performance Network (IPN) for a free customer savings program, myDG. Customers can access the program by visiting the Deals page and clipping DG Cash offers, or load coupons via the retailer's website or app.
MyDG benefits include:
- DG Cash Back: Customers can clip deals, shop and earn DG Cash (accessible in the app's DG wallet) to be spent in-store on a future visit
- Digital coupons
- A designated weekday of the shopper's choosing for added savings
- Personalized offers
- Bonus birthday month savings (upon providing birthday)
- Early access to new products and deals
- Ordering ahead (via the DG app)
The retailer is the first in its channel to join the IPN.
Private Label
Private Label
Dollar General has a broad selection of private label brands, which make up more than 20% of its total sales. It also supports them with a money-back guarantee:
- 321 Party!: Party supplies
- Breeze: Feminine care products
- Clover Valley: National brand-equivalent packaged foods, snacks and beverages. For 2023, the retailer is launching more than 100 new SKUs with new packaging designs and a wider assortment of sauces, condiments, entrees, sides and snacks.
- Comfort Bay: Home decor and furnishings
- Composure: Adult bladder protection
- DG Auto: Automotive accessories and cleaning products
- DG Baby: National brand-equivalent baby care products
- DG Body: Personal care products
- DG Hardware: Small manual tools
- DG Health: National brand-equivalent OTC medicine and supplements
- DG Home: National brand-equivalent paper goods and cleaning products
- DG Party: Gift wrapping supplies
- Five Deep Breaths: Fragrance-inspired body care
- Forever Pals: Pet food, treats, and accessories
- Gentle Steps: Baby products
- Good & Smart: Launched in 2018, the packaged snack and beverage brand represents about 75% of the retailer's better-for-you portfolio.
- Heartland Farms: Cat and dog food and accessories
- Koze Place: Scented candles, wax melts, diffuser oils, and air and fabric refresher sprays
- Nature's Menu: Premium dog and cat food
- Ntense Energy: Energy drinks
- Office Hub: School and office supplies
- Oh Good!: Gummy vitamins
- ProEssentials: Tools and DIY accessories
- Root to End: Cruelty-free, vegan hair care
- Scent Happy: Bath and body products
- Shavely's & Sierra: Shaving supplies for men and women
- Smart & Simple: Value household products
- Studio Selection: Launched in 2018, the line of personal care SKUs boasts more stylized packaging intended to assert its national-brand equivalence. The current selection of about 35 SKUs contains some on-trend products such as charcoal pore strips and cleanser.
- Sweet Smiles: Confectionery
- TrueLiving: Housewares and cleaning supplies
Dollar General also holds an exclusive license on the Rexall OTC brand, which includes a collection of Rexall Naturalist supplements and minerals.
Shelf talkers and digital activity promote deals on private label products, along with plugging their low price points. Dollar General also regularly partners with national brands to develop recipes that incorporate Clover Valley products.
Dollar General is expanding its private brand assortment to offer consumers health food options that won’t break the bank. The company recently added around 125 "better for you" items to its shelves in 2,700 stores. The products appear under Dollar General's Good & Smart house brand.
Exclusives
The company also markets exclusive lines of merchandise.
In January 2024, Slatkin + Co.'s home fragrance line, Club92, launched at Dollar General. The line includes candles, reed diffusers and wax melts in a variety of scents.
Dollar General also sells several clean beauty, skin and hair care options. Product lines include:
Cause /Community Programs
Cause/Community Programs
Dollar General's primary philanthropic cause is literacy, in recognition of the fact that company founder J.L. Turner was illiterate. The Dollar General Literacy Foundation awards annual grants to libraries, schools and nonprofit organizations that support literacy programs. It also sponsors the Kids in Need Foundation's Second Responders program, which provides school supplies to children affected by natural disasters. The Foundation has awarded approximately $186 million in grants since its inception in 1993.
In 2020, the Dollar General Literacy Foundation launched the Yellow Glasses Project. Yellow sunglasses are priced $2 a pair at Dollar General locations; the proceeds benefit the foundation's initiatives.
The retailer enlists major CPGs to sponsor its nonprofit with various programs. Among recent activity:
- Dollar General and its literacy foundation partnered with Unilever USA and Dale Earnhardt Jr. for its Reading Revolution program. Most recently the partners awarded Unilever coupon books and Dollar General gift cards to teachers and staff to use toward the purchase of classroom supplies. Since 2013, the program has awarded more than $4.4 million to more than 120 schools. Funds are used to purchase supplies, technology and resources to further literacy.
- Dollar General partnered with Edgewell Personal Care for The Emerging Artist Project. Students could submit art based on a theme for a chance to win tuition money and have their art featured on a limited-edition Schick Intuition package, which will be sold in the retailer's stores.
- Dollar General has an ongoing partnership with Kellogg Co. to donate books to local elementary schools. Since the partnership began in 2021, more than 160,000 books have been donated to school libraries and students across the U.S.
- Kellogg Co. provided a free co-branded Spider-Man comic book with the purchase of a box of Kellogg's cereal ahead of the July 2019 theatrical release of Columbia Pictures' Spider-Man: Far From Home that also positioned the brand as a sponsor of the Dollar General Literacy Foundation.
- Georgia-Pacific's Sparkle provide an exclusive back-to-school themed in July 2019, and a web page promoting the SKU touted the brand's sponsorship of the nonprofit. The retailer and brand also teamed up for a campaign benefiting the Kids In Need Foundation.
- Social media activity on Sept. 8, 2019 promoted the day's designation as "National Literacy Day" by spotlighting Mondelez International's Trident as a sponsor of the Dollar General Literacy Foundation.
Dollar General founded the Paychecks for Patriots program in 2012, organizing hiring events around the country to help veterans find jobs. The retailer also has coordinated with Coca-Cola Co. every summer since 2017 on efforts to support the United Service Organizations (USO). In summer 2019, Dollar General also partnered with Mars' Extra and PepsiCo/Frito-Lay's Cheetos on programs focused on supporting troops.
Among other preferred causes:
- St. Jude Children's Research Hospital: The retailer has supported the organization's "Thanks and Giving" holiday fundraising campaign since 2005 by soliciting donations at checkout.
- Autism Speaks: The retailer has staged an annual fundraising campaign since 2010 that ties in to April's designation as "Autism Awareness Month." Stores solicit donations at checkout.
- American Red Cross: Dollar General has collected donations in stores and provided additional contributions to the nonprofit's disaster relief efforts since 2010.
- Marine Toys for Tots Foundation: A sponsor since 2004, Dollar General collects toy donations through in-store dump bins during the holiday season.
- Period poverty: Dollar General distribution centers and their employees donate or hold drives to collect feminine hygiene products for women in need.
- Habitat for Humanity: Employees volunteer to help build houses to improve access to affordable homes; the retailer also donates housewarming baskets filled with Dollar General products to the new homeowners.
Sustainability
In 2023, Dollar General joined a reusable-bag pilot through a Consortium to Reinvent the Retail Bag initiative, managed by Closed Loop Partners. Signage, marketing and customer prompts about reusable bags are being used in Denver and Tucson, Arizona-area stores.
Advertising Strategy
Advertising Strategy
Tagline: Save time. Save money. Every day!
Primary media: Digital, run-of-press, radio
Dollar General uses predictive technology to mix digital and conventional media to reach its target customers when, where and how they choose to engage. The retailer increased advertising spending in 2016 and 2017 using money it had previously allocated to its NASCAR sponsorship. TV spots are still rare, almost entirely reserved for promoting the Dollar General Literacy Foundation.
While most messaging emphasizes Dollar General's every day low prices, the retailer also uses print and digital advertising to build awareness of categories it wishes to emphasize. Campaigns planned for 2018 will focus on enhancing the quality perception of the retailer's health and beauty offerings.
Co-op advertising with major CPGs including Hershey Co., GlaxoSmithKline and PepsiCo are common, often promoting coupons for new products and seasonal needs. Dollar General also ramps up ad spending to introduce new locations.
Solution Providers
Solution Providers
- Advertising, Dollar General Literacy Foundation: McKinney, Durham, North Carolina
- Data analytics: Nielsen, New York City
- Shopper marketing: Phoenix Creative Co., St. Louis
- Supply chain management and AI solutions: Symphony RetailAI, Dallas
- Real-Time Store Operations: Reflexis Systems Inc. (a part of Zebra Technologies), Dedham, Massachusetts
- Retailer Media Network: DG Media Network
- In-store media provider: Neptune Retail Solutions, Jersey City, New Jersey
Sponsorships
Sponsorships
Dollar General sponsored the Dollar General Bowl in Mobile, AL in December 2016, promoting the event with displays and social media activity. The retailer also ran several cause programs tied to the game.
The retailer also began sponsoring the Big 12 Conference in 2017, hosting tailgating events at each of the participating schools during the fall football season. The events feature autograph signings with a former player, games, grilling and giveaways. They are supported by some of the retailer's major vendor partners including Kellogg Co., Nestle, Procter & Gamble, Hershey Co., Clorox Co. and Georgia-Pacific.
Marketing Expenditures
Marketing Expenditures
Advertising expenses were:
- $130.6 million in 2023
- $126 million in 2022
- $117.2 million in 2021
- $107.4 million in 2020
- $91 million in 2019
- $70.5 million in 2018
For 2023, the costs primarily went toward promotional circulars, targeted circulars supporting new stores, digital media support, and in-store signage.
![DG logo](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2022-07/dollar_general.png)
Dollar General Promotional Calendar
A roundup of seasonal promotions.
January
- New Year: Social media updates link to “better-for-you” recipes and nutritious foods within DollarGeneral.com.
- Super Bowl: Promotes party fare from major CPG manufacturers via circulars, in-store signage, and social media activity.
- Martin Luther King Jr. Day: Brand-agnostic social media activity honoring Dr. King.
- Valentine's Day: Omnichannel activity spotlights confectionery, beauty items, greeting cards and other giftables from national brands.
February
- Football/Super Bowl: Annual bulk-purchase incentive with NFL sponsor PepsiCo/Frito-Lay gets in-store support.
- Black History Month: Social media posts honoring the occasion.
- Easter: Digital activity, displays and circulars (starting in late February) promote confectionery, baking needs, gift cards, baskets and other seasonal products. Social media updates link to relevant online deals.
- Spring Cleaning: Digital coupons and social media updates encourage purchases of relevant products from a set of major CPGs, with Clorox leading the pack in 2022 and Procter & Gamble featured strongly in 2023.
- Bedding Sales Event: Limited-time savings on bedding.
- Valentine's Day
March
- Spring: Circulars and social media updates communicate deals on furniture, flowerpots, potting soil and other supplies.
- March Madness: An emphasis on party snacks and essentials on social media.
- International Women’s Day/Women’s History Month: Social media updates celebrate both the month and day.
- Home Sale Event: Savings of up to 50% on home items.
- Easter
- Spring Cleaning
April
- National Picnic Day: Instagram post in 2022 tied in to the day by spotlighting sandwiches and snacks from Frito-Lay's SunChips.
- Spring Cleaning: Activity continues with circulars advertising deals on supplies.
- Easter
May
- Teacher Appreciation Day: Social media updates communicate a 5% discount for teachers.
- May the 4th: Social media updates link to licensed Star Wars items.
- Mother's Day: Digital, social media and circular activity tout gift ideas.
- National Pet Month: Circulars tout deals on food, treats and other pet products.
- Memorial Day: Social media updates link to online deals on grilling items and promise 15% off during the holiday weekend for veterans, active duty military and their families.
- Spring Cleaning
June
- Summer: Spotlights seasonal and exclusive SKUs and incentives from various national brands in stores. Stores also make space for grilling/BBQ items, pool accessories, outdoor furniture and sun care items. Circulars and social media updates support.
- Father's Day: Digital and circular activity plug gift ideas.
- Graduation: Circulars spotlight balloons, frames, cards and various other party needs.
- Pride Month: Social media update honoring the LGBTQIA+ community.
July
- Back to School: Circulars and displays offer deals on school supplies, while social media updates also highlight lunchbox items from brands including Capri Sun and Lay's. Kicks off annual Yellow Glasses Project initiative supporting the Dollar General Literacy Foundation with the help of various manufacturers, with General Mills folding its Box Tops for Education program into the activity in 2022.
- 4th of July: Circular promotes multi-day sales events. Social media updates link to food and beverage deals.
- Summer
August
- Football/Tailgating: Leverages the official sponsorships of major manufacturers, including Dr Pepper, for promotions tied to the College Football Playoff series and the NFL season. Circular features and social media updates promote party hosting and "pregame" essentials.
- Back to School
September
- Labor Day: DollarGeneral.com and social media updates in 2022 plugged patriotic place settings and decor.
- Halloween/Dia de Muertos: Stores stock seasonal decorations and snacks, with Frito-Lay supplying account-specific signage in 2022. DollarGeneral.com, circular features and social media updates spotlight candy, party supplies and decor deals.
- Fall: DollarGeneral.com, circular features and social media updates plug deals and decor, candles and other seasonal items.
- Back to School
- Football/Tailgating
- Fall Cleaning
October
- Breast Cancer Awareness Month: Social media updates in 2022 supported survivors and plugged Colgate-Palmolive’s Ajax as a supporter of the Breast Cancer Research Foundation.
- Halloween/Dia de Muertos
November
- Veterans Day: Veterans, active duty military personnel and their family members receive 20% off qualifying in-store purchases. Social media updates support and link to online deals.
- Thanksgiving: DollarGeneral.com and social media updates spotlight dishes and SKUs from brands including Kraft Heinz's Cool Whip and Stove Top.
- Cold & Flu: OTC SKUs promising relief get the spotlight on DollarGeneral.com.
- Holiday: Partners with national brands for themed incentives and exclusive SKUs. Extends store hours and offers exclusive digital coupons as well as online-only discounts. Omnichannel campaign includes circular features and social media updates plugging candy and decor.
- DG Deals Days: Three-day (Thursday-Saturday) sales running every weekend leading up to Christmas that include savings on seasonal and everyday SKUs.
December
- New Year’s Eve: Party supplies get the spotlight via social media updates.
- Holiday
- DG Deals Days