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Dollar General Hopes Customers Trading Down, Picking Delivery Is a Winning Combo | Global News Avenue

Dollar General Hopes Customers Trading Down, Picking Delivery Is a Winning Combo

Key Points

  • CEO Todd Vasos said Americans’ search for products with lower products could generally benefit the dollar.
  • He said bargaining retailers may also be able to answer shoppers who often keep shutting down competitors.
  • Vasos said Dollar General aims to provide delivery services to 10,000 stores by the end of the year.

Consumers are trading, which may generally be beneficial to the US dollar (DG)The retailer’s CEO said.

Americans are always looking for cheaper products –Or transactionCEO Todd Vasos said in a debriefing call on Thursday that while the closures of some competing retailers have been giving Dollar General the chance to win new shoppers. The company reported earlier today More than expected fourth quarter sales But missed the profit estimate.

According to Vasos, transactions have been accelerating by the end of 2024 and early 2025. He said the trend could be good for Dollar General, which owns its store of the same name as Popshelf, a retail concept that costs slightly more than a bargaining brand.

“We are totally focused on making sure we have the best footsteps. So when these customers come into our store, they get tricky and keep shopping with us.

However, Americans’ focus on savings is some drawbacks for Dollar General. Vasos said the company’s core low-income consumers were financially compressed. He said the company gained market share in certain categories, but sales of seasonal household goods and clothing were slow.

“Many of our customers report that[they]only have enough money to spend on basic necessities, and some of them point out that even on necessities must be sacrificed,” Vasos said.

Expanding home delivery is part of Dollar General’s plan to build a customer base. There are currently about 400 stores passing through doordash ((sprint), the option may be available in 10,000 stores by the end of the year.

And WalmartWMT) and goal (TGTDollar General will stand out because it can quickly bring goods to rural residents, Vasos said. The average delivery order for USD is on average greater than what customers spend in stores and may increase loyalty.

“Today, no one can send it to rural America in an hour. We can do it,” Vasos said.

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