Dollar General is testing same-day delivery in some 75 locations as dollar stores lose market share to Walmart

Dollar General is aiming to stay competitive with a helpful new service. The discount retailer is now offering same-day delivery to customers who want their orders in a hurry.

On Thursday, CEO Todd Vasos revealed that the company “soft launched” the delivery program in September, and now offers the service via a third-party company in about 75 Dollar General stores.

The delivery service is part of the brand’s attempt to draw customers back as inflation caused sales to take a steep plunge this year. Dollar General has about 20,000 locations across the U.S. but has been losing market share to Walmart and other competitors.

As consumers have moved away from discretionary purchases and focused on the basics, Walmart, which only has about 4,600 stores, has seen profits surge this year. And while Walmart profited from more consumers turning to the brand’s budget groceries and other necessities, it has also invested heavily in e-commerce in recent years, particularly since the pandemic.

Peter Keith, a retail analyst for Piper Sandler, recently told CNBC that those investments matter a great deal in today’s market. “Dollar stores inherently are sort of convenient because they have a lot of locations, but they don’t have very strong digital offerings,” he said. “And I think that’s become a disadvantage in the current environment.”

Now, Dollar General appears ready to lean into at-home shopping. The new service, called DG Delivery, is available at select stores, according to Dollar General’s website . Much like Walmart and Amazon’s same-day delivery options, customers can order online or via the Dollar General app.

Vasos said he hopes the new service will be a new advertising opportunity for the chain, as customers completing online orders will be active on the app. The brand also recently announced its “24 Days of Savings” promotion, which will feature a discount on a product each day from December 1 through 24.

Dollar General’s new program accepts digital coupons, offers cash-back rewards, and does not appear to come with an added fee, per the website. While the service is only being offered at a small number of locations right now, Vasos said that Dollar General will soon expand the offering to “thousands of stores.”