Dollar General will debut a new store format designed to be “more open and inviting, resulting in greater browsing and treasure hunt shopping as customers are exposed to more categories as they navigate the store,” said Todd Vasos, CEO of Dollar General, during a conference call discussing the retailer’s FY 2025 financial results. Dollar General also is planning to pilot a subscription program as part of expanded loyalty opportunities, although no details on the program were provided.
“We tested this new [store] format in a portion of our 2025 remodel projects and are pleased with the incremental sales lift and relative sales outperformance compared to traditional remodels,” said Vasos. “Ultimately, we believe this format will help drive both increased transactions and ticket [sizes] as the store provides for an even fuller fill-in trip.”
Additionally, following brand expansions in 2025 with brands such as Dolly Parton and Kathy Ireland, Dollar General expects “to launch at least 15 new brands in nonconsumable categories in 2026,” said Vasos. “Notably, our goal is to increase nonconsumable sales penetration to as high as 20% by 2029. This would represent meaningful gross margin expansion and is an important component of our long-term financial framework.”
The retailer also has begun seeing benefits from its digital investments, including a strong retail media network: “We have established a robust digital ecosystem in recent years with more than 7 million monthly active users on our Dollar General app and a total of more than 100 million marketable customer profiles,” said Vasos. “In 2025, as partners continue seeking access to our unique customer base, we delivered approximately $170 million in retail media network volume, which is highly accretive to gross margin. Overall, our digital strategy is an important component of our in-store customer experience and a key driver within our long-term financial framework.”
Robust Store Growth in the Works Following Strong 2025
Dollar General has benefited from the increasingly value-seeking behavior of consumers. Driven in part by a same-store sales increase of 3%, the retailer increased its net sales for FY 2025 (ended Jan. 31, 2026) by 5.2% compared to the previous fiscal year, to $42.7 billion. The retailer had announced ambitious store growth plans in December 2025, including 450 new U.S. stores, 10 new Mexican stores and more than 4,000 remodeling and renovation projects.
“In 2025, we opened 581 new stores in the U.S. and we plan to open an additional 450 new stores in 2026,” said Vasos. “Approximately 80% of our stores are in rural communities of 20,000 or fewer people, and we see substantial opportunities to continue growing our store count and serving new customers for many years to come. Importantly, these projects continue to be one of our best uses of capital and are an important part of our growth strategy.”
