Dive Brief:
- Dollar General will introduce a new store format in 2026 designed to encourage browsing and treasure hunting by customers, CEO Todd Vasos said on an earnings call with analysts Thursday. The layout was tested in a portion of the retailer’s 2025 remodel projects. Additionally, Dollar General will pilot a subscription program as part of its loyalty efforts.
- The company’s fourth quarter net sales grew 5.9% year over year to $10.9 billion, per a Thursday press release. Same-store sales jumped 4.3%, and operating profit grew about 106.1% to $606.3 million. For the full fiscal year 2025, Dollar General’s net sales grew 5.2% to $42.7 billion.
- For fiscal year 2026, the retailer expects net sales growth in a range from 3.7% to 4.2%. Meanwhile, same-store sales are projected to grow between 2.2% and 2.7%.
Dive Insight:
Dollar General 2026 store format and loyalty program efforts are part of its goal to enhance customer experience, in addition to driving discretionary spend.
“Ultimately, we believe this format will help drive both increased transactions and ticket as the store provides for an even fuller fill in trip,” Vasos told analysts on the call.
The discount retailer embarked on a large store remodel effort in 2025, with Vasos noting on the call that it resulted in lower store manager turnover rates at impacted locations.
For the fourth quarter, Dollar General saw growth in customer traffic and average basket size, per Vasos. The increase in average basket was driven by growth with average unit retail price per item and partially offset by a decrease in the average number of items.
That comes as Dollar General’s shoppers across all income brackets are focused on value.
“We are meeting this need as we continue to grow penetration with households of all income levels, and while we continue to be pleased with our pricing position against competitors and other classes of trade, we know value is multifaceted, especially for our core customer,” Vasos added on the call.
Dollar General’s full-year results show how successful its shrink mitigation efforts have been, according to GlobalData Managing Director Neil Saunders. This included a slew of store improvements that helped to reduce overwhelming stock levels.
“These improvements have also meant that many stores are now looking better and are easier to shop,” Saunders said in emailed comments. “Admittedly, we still believe that Dollar General has some work to do on this front, but there has been a significant step-up over the last year. Increased labor hours have helped here, and the investment has paid dividends in terms of better sales numbers.”
