Dollar General is testing same-day delivery in an effort to keep up with Walmart.

• Dollar General is currently testing same-day delivery from approximately 75 of its stores.
• During an earnings call, CEO Todd Vasos stated that the company anticipates eventually expanding its offering to "thousands of stores."
• The pressure to compete with digital shopping options and low prices has affected the discounter.

The deep discounter is testing same-day delivery to customers' homes in an attempt to fend off fiercer competition with.

Dollar General CEO Todd Vasos announced on an earnings call Thursday that the retailer began offering same-day delivery at about 75 stores in September through a third-party company.

"We've always said here, 'We're going to do delivery our way when it's time,'" Vasos said. "We believe it's time."

He stated that the company anticipates eventually expanding its offerings to "thousands of stores."

The Tennessee-based dollar store is recognizing the competition from retailers such as Walmart, Amazon, and Temu, who offer both convenience and low prices. For example, Walmart has experienced significant growth in its online business, achieving 10 quarters of double-digit e-commerce gains in the U.S., with curbside pickup and faster home deliveries.

Unlike Dollar General, which heavily relies on brick-and-mortar sales and does not typically share updates or specific figures about its e-commerce business in quarterly earnings reports, Walmart frequently provides information about its e-commerce sales.

Over the past year, Dollar General has faced economic challenges and its own strategy, resulting in reduced discretionary spending by consumers, particularly low-income households, due to high inflation. Additionally, the company has paid millions of dollars in fines for safety hazards in its stores, including sloppy conditions and blocked fire exits.

Recently, Dollar General's CEO has discussed losing market share to Walmart. At a Goldman Sachs retail conference in September, Vasos stated that Walmart had taken a larger share of Dollar General's middle-income customer base.

The company launched its own program after learning from its DoorDash deliveries, which are available at approximately 16,000 of its stores.

DG Delivery, a new offering from Dollar General, is available at select stores. Customers can place orders through the app and receive the same store prices and delivery in as little as an hour. The program also accepts digital coupons and offers cash back rewards.

According to the website, DG Delivery does not charge a fee and has no minimum order requirement.

Dollar General's CEO, Vasos, stated during the earnings call on Thursday that the company is still developing its online business model and relies on third-party labor rather than utilizing store employees or company-employed delivery personnel. He added that same-day delivery presents an opportunity to expand the retailer's advertising business since customers would interact more frequently with the app when placing orders.

Dollar General has more than 20,000 stores across the country, including many in rural parts of the U.S. However, the option is only available at a tiny fraction of its stores.