Dollar General Corp. (DG) is pulling out all the stops this holiday season, launching a slew of sales promotions to win back shoppers grappling with inflation. The discount retailer is facing fierce competition from mega-retailers Walmart, Inc. (WMT) and Amazon.com, Inc. (AMZN), who are also aggressively slashing prices to attract budget-conscious consumers.
Dollar General’s recent struggles stem from a shift in consumer behavior. As inflation continues to bite, shoppers are becoming increasingly value-focused, leading them to seek out lower prices at larger retailers. To regain market share, Dollar General is mirroring its competitors’ strategies, introducing several holiday season promotions similar to those offered by Walmart and Amazon.
One notable initiative is the launch of weekly ‘DG Deal Days’ sales events, starting on Halloween and running every Thursday, Friday, and Saturday until December 21st. These events promise deep discounts of 25% and 50%, alongside buy-one-get-one promotions. This strategy echoes Walmart’s ‘Walmart Holiday Deals’, which featured five days of discounts in early October and continues as an extended holiday deal event until December 25th. Amazon, too, hosted its annual Prime Big Deal Days sale in early October, aiming to capture early holiday spending with attractive deals.
Beyond deep discounts, Dollar General is also offering recipe-focused Thanksgiving meal deals, mirroring Walmart’s inflation-free holiday meal promotion. The sale features ‘buy two, get one’ bundle deals including ingredients for popular Thanksgiving dishes like pumpkin pie, green bean casserole, and sweet potato casserole.
Further emphasizing its commitment to affordability, Dollar General has launched a holiday toy guide for the 2024 season, a move mirroring the toy guides released annually by Amazon and Walmart. This guide focuses on offering budget-friendly options, featuring toys priced under $20, with most toys available for $10 or less.
Dollar General’s CEO, Todd Vasos, acknowledged the impact of Walmart and Amazon’s price-driven strategies on the company’s recent performance during the latest earnings report. He stated that while the company recognizes the financial constraints facing their core customer, they are actively working to control what they can. To address the evolving retail landscape and consumer preferences, they are taking decisive actions to enhance their value and convenience offering, along with improving the in-store experience.
Dollar General’s stock closed down 1.25% at $80.38 on Friday, reflecting the market’s response to the company’s efforts to regain market share in a challenging economic environment.