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

Core Insights - Dollar General is experiencing significant growth in digital advertising, with expectations of double-digit growth in 2025, indicating a strong revenue potential from retail media [1][9] - The company is expanding its store footprint in rural areas, planning to add 450 stores next year, which aligns with its strategy to enhance digital engagement and delivery services [4][6] Financial Performance - In the third quarter, Dollar General reported sales of $10.6 billion, reflecting a 4.6% increase from the previous year [3] - The company projects net sales growth of 4.7% to 4.9% in 2025, with same-store sales growth anticipated between 2.5% and 2.7% [3] Market Strategy - Dollar General is focusing on rural America, with approximately 80% of its stores located in towns with populations of 20,000 or fewer [6] - The company has seen an increase in customer count, particularly from higher-income households, while also acknowledging that low- and middle-income consumers are being more selective in their shopping [4][5] Digital Engagement - The company is in the early stages of its digital journey, with digital engagement described as being "in the second inning," and has expanded delivery partnerships to cover 18,000 stores [1][7][9] - The average basket size for delivery transactions is larger than in-store purchases, indicating a successful digital strategy [8] Inventory Management - Dollar General has successfully reduced inventory by 6.5% year over year while improving sales and in-stock levels, positioning itself well for the holiday shopping season [5]