Dollar General Expands In-Store Pickup

Cyndi Loza
Managing Editor, Member Content, P2PI
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Dollar General expanded its online purchase pickup service, DG Pickup, to most of its store base this fall as the COVID-19 pandemic continues. 

The dollar store chain wrapped up its third quarter on Oct. 30 with DG Pickup available at nearly 17,000 stores, up from 2,500+ stores at the end of its second quarter, which ended July 31. Available through the retailer's mobile application, the free service lets shoppers browse, purchase and select a time to pick up their order from a local store. 

The retailer aggressively plugged the service via features in its October and November digital circulars, mobile push notifications, a display ad and promotional page within, email blasts, and in-store window posters. Dollar General also uploaded various videos to its YouTube channel throughout the summer promoting the service. (See below.)

During a third-quarter earnings call on Dec. 3, Dollar General chief executive officer Todd Vasos noted DG Pickup provides a convenient access point for those seeking a more contactless customer experience. 

"In an environment where customers continue to seek safe, familiar, and convenient experiences, we believe our unique footprint combined with our digital assets provides a distinct competitive advantage," said Vasos, adding the dollar store chain also plans to expand its DG GO! service, which lets shoppers scan products in store and check out within a designated mobile app. 

"By leading our channel in digital tools and experiences, we believe we are well positioned to drive more in-store traffic, grow basket size and offer even greater convenience to new and existing customers."

Among other highlights from the third-quarter earnings call:

  • Dollar General remains on track to open 1,000 new stores, remodel 1,670 stores, and relocate 110 this year.  In 2021, the retailer plans to open 1,050 stores, remodel 1,750 stores and relocate 100. 
  • During the first three quarters of 2020, Dollar General added approximately 49,000 coolers across its store base. It expects to install more than 60,000 coolers by the end of the year, most of which will be in its higher capacity coolers.
  • The retailer's data suggested an increase in new customers during its third quarter compared to the period last year. These new customers skew younger, higher income and more ethnically diverse.