What Is Dollar General in 2024? A Small-Town Discount Retail Powerhouse

Dollar General‘s 18,000+ stores, found in the most remote corners of rural America, made it the #91 retailer on the 2022 Fortune 500. With another 10,000 locations slated to open by 2025, the discount chain shows no signs of slowing down.

But if you‘ve never stepped foot in one of their no-frills outlets, you may be wondering: what is Dollar General, really? And why are they so popular in small-towns?

Here’s an insider look into the unique value proposition that has turned this understated brand into a retail juggernaut across heartland America.

Backstory: How a Rural Upstart Became a Bargain Empire

To understand Dollar General‘s appeal, you have to go back to its roots. Long before conquering rural America, founder J.L. Turner opened the first store in Scottsville, KY during the Great Depression in 1939.

His novel idea? Sell a variety of basic everyday items for just $1 each. This value offering was a lifeline for cash-strapped rural families struggling to afford household essentials.

Over the next 80+ years, Dollar General rapidly expanded while staying true to serving small overlooked towns. Some key milestones:

• 1955 – Goes public with ~30 stores
• 1968 – Hits 1,000+ stores after launching employee-focused culture
• 2000 – Reaches over 6,000 locations nationwide
• 2015 – Tops $20B in sales across 11,500+ stores
• 2022 – More than 18,000 stores with $34B in revenue

Today 75% of Americans live within 5 miles of a Dollar General. Their empire spans 47 states with up to 26,000 total locations expected by 2025.

Yet most shocking? Despite this mammoth footprint, the average shopper has no idea DG rakes in far more annual sales than chains like Sprouts or Chipotle.

More Than a Dollar Store: Product Range & Store Format

While Dollar General started as solely a dollar store, today around 25% of items are under $1. The other 75%?

Name-brand items priced from $1 to $10, along with cheaper Dollar General private label alternatives across categories like:

• Food/beverage – snacks, milk, eggs, frozen meals
• Home/cleaning – laundry, paper towels, cleaners
• Health/beauty – oral care, shampoo, OTC meds
• Seasonal – holiday décor, gifts, toys, cards
• Apparel – clothing, shoes, accessories

This combination allows rural shoppers to conveniently grab household essentials, pantry staples, or a quick gift without breaking the bank.

And Dollar General‘s tiny stores enhance this simplicity. At just ~7,400 square feet on average, shops neatly organize products in categories without feeling overwhelming.

Spartan fixtures spotlight merchandise and signage while keeping build-out and maintenance costs low. Stores easily plug into strip malls or standalone structures along rural highways.

The result? A consistent experience where loyal customers always know exactly what to expect when they pop into their neighborhood DG.

By the Numbers: Scale, Sales, and Strategic Growth

Crucial stats that showcase Dollar General‘s unchecked expansion:

• New store openings every month: 75+
• Additional locations by 2025: 10,000+
• Projected 2025 store count: Up to 26,000
• Same store sales growth in 2022: 6.7%
• Total revenue in 2022: $37 billion
• Key product categories by sales:
  • Consumables – 77%
  • Seasonal – 12.5%
  • Home products – 7%
  • Apparel – 3.5%

This sales breakdown spotlights Dollar General‘s laser focus on quick-trip food and essentials vs. higher-margin discretionary goods. Still, they move huge volumes by excelling at convenience and targeting America‘s small towns.

In fact, over three-quarters of the total US population lives within 5 miles of a DG. And they continue aggressively building in rural areas far from opponents like Walmart that concentrate in suburbs and cities.

Head-to-Head: How Dollar Stores Stack Up

Dollar General dominates the land of extreme value retail. But dollar stores as a segment have exploded over the past decade thanks to bargain-hungry shoppers.

So how does Dollar General measure up versus key dollar store rivals?

Data sources: Dollar General, Dollar Tree, Family Dollar financial releases

The key takeaway? All models focus on deep discounts, but Dollar General pulls away from the pack thanks to its convenience-focused concept and product breadth beyond $1 items.

Competitive Edge: What Sets Dollar General Apart?

Dollar stores generally thrive during economic downturns as pinched consumers trade down.

But Dollar General still manages to grow year after year regardless of income trends. Four factors fuel their success and set them apart from retail rivals:

1. Sheer Scale & Store Productivity

With 18,000+ locations and growing, Dollar General has reached a tipping point where embedded costs like advertising and supply chain drop from massive economies of scale. This gives them pricing power to keep expanding profitably.

In fact their square footage, sales, and store profits blow away all discount competitors:

Sources: Public earnings reports

Dollar General packs category-leading sales into tiny footprints. This makes them very productive rural outlets vs. larger big-box formats.

2. Laser Focus on Convenience

Shoppers choose Dollar General for hassle-free fill-in trips closer to home rather than large stock-up visits. This convenience focus pays off – over 75% of sales come from consumables like food and household essentials.

And Dollar General stores excel at catering to time-crunched customers. Shoppers get in and out 60% faster at their local DG than a supermarket. Quicker checkout speeds, self-checkout lanes, and mobile checkout all enhance convenience.

3. Master of Rural Retail Logistics

Challenges like recruiting staff or securing suppliers worry retailers in remote areas. But lean operating models honed over 80+ years help Dollar General thrive in small towns.

For example, they perfected rural logistics by utilizing smaller distribution centers spread across geography to lower freight costs. Stores also take ownership of basic upkeep so costly facilities teams aren’t needed.

These smart operating choices allow Dollar General to open 6 times faster than key rivals in rural markets. And they reinvented merchandising planning using data analytics to align assortments with hyperlocal demand.

4. Customer Loyalty Runs Deep

Rural consumers embrace Dollar General as their go-to, defending them passionately against naysayers and connecting stores to community identity.

In fact, over 60% of mature rural customers shop at Dollar General more than 3 times each month. And 75% drive past rivals like Walmart to shop there instead.

Cracking this loyalty is impossible for competitors. Dollar General earned trust over decades through everyday low prices, local jobs, and dependability as the only store left standing when others exited small towns.

Outlook: Full Steam Ahead Conquering Rural America

Dollar General sits in the catbird seat as the small-town retailer of choice across much of heartland America.

Their streamlined operating model also clicks with investors – DG shares returned over 180% the past five years.

And they aim to extend their rural footprint to up to 26,000 locations by 2025 to deepen convenience and control costs through scale.

While economic uncertainty in 2024 may pinch spending for some shoppers, it will also trigger more consumers to focus on discount outlets like Dollar General.

After growing sales every year for over three decades now, DG seems poised to only expand its dominance further across overlooked rural markets where loyalty runs deep.

So for small towns seeking value, convenience, and connection, Dollar General has proven itself as far more than a dollar store – it‘s an irreplaceable community lifeline.