Dollar General built its brand through sales at its physical stores, but the company’s latest earnings results came with an update on its digital ambitions for ecommerce sales and its retail media network. Now, the retailer wants to expand its growing digital footprint.
The company announced that net sales increased 5.3% year over year to $10.4 billion in its first fiscal quarter ended May 2. During a quarterly earnings call with investors, its leadership explained the role they see digital initiatives playing as they look to drive additional gains.
Dollar General is ranked No. 674 in the Top 2000 Database, Digital Commerce 360’s ranking of North America’s largest online retailers. There, Digital Commerce 360 categorizes it as a Mass Merchant retailer. Digital Commerce 360 projects Dollar General’s online sales in 2025 will reach $97.25 million.
Dollar General’s ecommerce sales and digital plans
The digital part of Dollar General’s business is growing and is “an important complement to our unique store footprint as we continue to deploy and leverage technology to further enhance convenience and access for our customers,” CEO Todd Vasos told investors.
Vasos pointed to Dollar General’s mobile app as being “engaging and popular with our customers.” He also mentioned that its website, dollargeneral.com, has been growing partnerships with last-mile delivery companies such as DoorDash. Moreover, it has seen improving metrics at its retail media arm, the DG Media Network.
“The linchpin of our digital initiative is our DG Media Network, which enables a more personalized experience for our unique customer base while delivering a higher return on ad spend for our partners,” Vasos stated. He added that the DG Media Network “grew retail media volume more than 25% in Q1 compared to Q1 of 2024.”
“Over time, we believe we can leverage this offering to increase market share and drive profitable sales growth, while further evolving our relationship with our customers and driving greater customer loyalty within the digital platform,” Vasos said.
Revenue and outlook in Dollar General Q1 results
Vasos discussed Dollar General’s digital plans as the retailer detailed better-than-expected revenue for Q1. The results showed that even affluent shoppers were abandoning pricier alternatives in favor of Dollar General’s deals.
The Tennessee-based retail chain beat quarterly expectations for both revenue and earnings. Now, the company is forecasting net sales will grow about 3.7% to 4.7%, compared to its previous expectation of about 3.4% to 4.4%. In total, the first quarter results showed revenue of $10.4 billion, which surpassed the $10.31 billion originally expected.
The digital strategy comments also followed Dollar General’s recent announcement that it would partner with the rewards app Fetch to offer DG Media Network advertisers a way to reach customers.
“Shoppers come to their Fetch app with intent — they’re planning, buying, and ready to be rewarded,” said Courtney Cochrane, Retail Industry Lead at Fetch, in a press release. “By partnering with DGMN, we’re giving brands a way to meet consumers in those exact moments and drive real results. It’s not just about impressions — it’s about getting products into carts.”
Dollar General’s retail media network and omnichannel future
Mariano Gomide de Faria, the co-founder and co-CEO of the digital commerce platform VTEX, said Dollar General’s moves do not come as a surprise.
“We’ve been tracking this very closely, and see Dollar General’s moves as part of a larger platform shift we’re seeing across modern retail: retailers evolving beyond product sales into fully-fledged media networks and data-powered ecosystems,” Gomide de Faria stated.
It’s all part of many brands moving towards full-fledged omnichannel experiences.
“This convergence of media, fulfillment and first-party trust is exactly where we believe retail platform models are headed — blending media, commerce, and delivery into integrated owned ecosystems,” Gomide de Faria said.
Do you rank in our databases?
Submit your data and we’ll see where you fit in our next ranking update.
Sign up
Stay on top of the latest developments in the online retail industry. Sign up for a complimentary subscription to Digital Commerce 360 Retail News. Follow us on LinkedIn, X (formerly Twitter), Facebook and YouTube. Be the first to know when Digital Commerce 360 publishes news content.
Favorite