The battle among discount retailers is heating up as Dollar General (DG) trials same-day delivery to customers’ homes as it chases retail king Walmart (WMT).
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During the company’searnings call Dollar General CEO Todd Vasos said that the company has launched a trial same-day delivery program at about 75 of its stores. Dollar General is using a third-party delivery company as part of the trial, although Vasos declined to name which one.
Vasos said Dollar General plans to eventually expand same-day delivery to “thousands of stores” across the U.S. News of the delivery trial comes as Dollar General fends off competition from not only Walmart, but Amazon (AMZN) and Temu as well, all of which offer home delivery along with low prices.
Mixed Financial Results
Dollar General CEO Vasos mentioned the home delivery trial when discussing Dollar General’s third quarter financial results. The Tennessee-based company announced earnings per share (EPS) of $0.89, which was below Wall Street’s forecast of $0.94.
However revenue in the July through September period totaled $10.2 billion, which topped the consensus forecast on Wall Street of $10.14 billion. Sales were up 5% from a year ago. Management also reiterated during theearnings calltheir goal of opening 575 new stores across the U.S. by January 30, 2026. Dollar General currently has more than 20,000 stores across America, many of them in rural areas.
DG stock has declined 40% so far in 2024.
Is DG Stock a Buy?
The stock Dollar General has a consensus Hold rating among 12 Wall Street analysts. That rating is based on three Buy, seven Hold, and two Sell recommendations issued in the last three months. The average DG price target of $92.91 implies 17% upside from current levels.
Read more analyst ratings on DG stock
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
