Dollar General on Thursday said it grew market share in dollars and units in grocery items during its third quarter as consumers of all income levels hunted for discounts.
The value-focused retailer’s stock price was up nearly 11% in early trading following the earnings report in which Dollar General raised its financial expectations for the remainder of the year.
Dollar General, based in Goodlettsville, Tenn., said same-store sales for the quarter ended Oct. 31 rose 2.5%, while net sales increased 4.6% to $10.6 billion.
For the quarter, Dollar General’s consumables sales grew 4.5%, while sales of seasonal items increased 5.5% and home products rose 5.4% from the year before.
Same-store sales growth was driven by increased traffic, while basket size remained flat.
“This traffic and basket composition is consistent with what we have historically observed when our core customer feels more pressured on their spending as they come in more often but have smaller basket sizes,” CEO Todd Vasos told analysts.
For the fiscal year ending on Jan. 30, Dollar General raised its net sales growth forecast to 4.7% to 4.9%, up from earlier predictions of 4.3% to 4.8%. The retailer also said it now expects same-store sales growth of 2.5% to 2.7%, compared to previous guidance of 2.1% to 2.6%.
Dollar General said it expects to open about 450 new U.S. stores in 2026, along with 10 new stores in Mexico. In addition, the retailer said it intends to fully or partially remodel 4,250 stores through its Project Renovate and Project Elevate programs.
The retailer opened 196 new locations during the third quarter, particularly of its 8,500-square-foot model in rural markets. As of Oct. 31, Dollar General operated 20,901 stores.
“We are in a unique position to serve an underserved customer in rural America, where approximately 80% of our current store base serves towns of 20,000 or fewer people,” CFO Donny Lau said. “We believe these projects will further solidify Dollar General as the essential partner in communities in rural America, both in our physical store location, as well as an expanding digital reach.”
Dollar General has consistently expanded its delivery reach, with a DoorDash partnership that has grown to cover 18,000 stores as well as its own DG Delivery platform that now reaches 17,000 stores. Most recently, the retailer added Uber Eats as a delivery option, now available in more than 17,000 stores.
More than 75% of Dollar General orders are delivered in an hour or less.
“Collectively, these delivery options have significantly enhanced the convenience proposition for our customers,” Vasos said. “We are seeing larger basket sizes than the average in-store transaction and a very strong repeat visit rate from customers on our delivery platform.”
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