In a complicated economic context, retail giants are struggling to keep their position. Persistent inflation, high interest rates, and post-pandemic effects have weakened the sector. Despite these obstacles, some companies like Dollar General have found new ways to reinvent themselves.
Dollar General has just taken a key step that could change the retail landscape in the United States. With more than 20,500 stores spread across 48 states, the U.S. discount chain has signed a strategic alliance with Kevel, a company specializing in API advertising solutions. This move not only strengthens its presence in the market, but also sends a direct warning to competitors like Target.
Strong bet on digital advertising
The collaboration with Kevel will allow Dollar General to offer advertisers more direct and personalized access to its vast customer base. "We're very excited to partner with Kevel to take our retail media offerings to the next level," said Natalie Ong, the Chief Operating Officer of DG Media Network. The company seeks to create advertising experiences tailored to its brand and the needs of its consumers.
This new approach is not accidental. According to eMarketer, investment in retail media will reach $62 billion (€62,000 million) in 2025, with year-over-year growth of $10 billion (€10,000 million). In addition, 75% of advertisers plan to increase their spending in this channel during the next year, and a third of them intend to do so with increases of up to double digits. James Avery, CEO of Kevel, stated that "Dollar General's decision to partner with us shows the trend of retailers taking control of their advertising technology."
With this alliance, Dollar General keeps full control over its first-party data and will be able to seamlessly integrate its digital ads into its website, app, and in-store screens. This strategy aligns with the sector's overall shift: it's not that retail is disappearing, but that it's evolving. Survival depends on adapting and offering more value to both customers and brands.
Economic results and resource optimization
Despite the challenges, Dollar General achieved net sales of $40.6 billion (€40,600 million) in fiscal year 2024, which represents a 5% increase compared to the previous year. However, its operating profit fell by 29.9%, standing at $1.7 billion (€1,700 million) compared to $2.4 billion (€2,400 million) in the previous year. This drop is due, in part, to $232 million (€232 million) in charges related to the review of its store portfolio, according to The Street.
As a result of this review, the company announced the closure of 96 Dollar General stores and 45 Popshelf locations. In addition, six Popshelf stores will be converted into Dollar General. Todd Vasos, the company's CEO, acknowledged in the latest earnings presentation: "Many of our customers say they only have money for basic products." He added that "they've even had to give up essential needs."
Even so, the outlook is not entirely negative. Dollar General's shares have risen by 35.13% so far this year, reaching $102.20 per share. This stock market performance suggests that investors view the company's recent moves favorably.