GOODLETTSVILLE, Tenn.—Dollar General has announced a partnership with cash-back rewards platform Ibotta, which will extend Dollar General’s financial services and offer cash-back options to all consumers.
“We are excited to provide an additional innovative option for our customers to help stretch their budgets,” said Emily Taylor, Dollar General’s executive vice president and chief merchandising officer. “Ibotta’s cash-back rewards program further complements our continuous efforts to provide financial offerings and rewards to customers alongside our everyday low prices.”
As part of the partnership, Dollar General will join the Ibotta Performance Network (IPN), which enables promotions to be delivered across retailer platforms. Dollar General is the first retailer in its channel to join the IPN.
Consumers can receive cash back rewards Dollar General through Ibotta’s platform and can expect cash back rewards available directly through Dollar General’s app and website by spring 2023.
“Dollar General has enjoyed explosive growth because of its innovative approach to helping consumers stretch their budgets,” said Bryan Leach, Ibotta’s founder and CEO. “Partnering with like-minded brands is a priority for us, and Dollar General is deeply committed to creating maximum value for their customers through seamless, customized programs that help save them even more money.”
Dollar General’s partnership with Ibotta builds on the company’s March 2022 announcement of enhanced financial services, which includes its exclusive spendwell banking platform and FIS Worldpay card rewards points payment options.
Dollar stores are opening new locations at a faster clip than other retailers, as the channel is fueled by demand for cheaper groceries and goods from inflation-weary customers. Dollar General and Dollar Tree combined plan to open more than 1,300 net new stores by the end of the fiscal year that ends in late January.
According to Dollar General CEO Jeff Owens, the company is benefiting from price-conscious consumers, and even customers who make $100,000 a year have been shopping at its stores. Coresight Research surveys show that millennials and Gen Z are becoming more price conscious and prefer to save on retail and household goods instead of spending more on services and experience-based purchases.
Dollar General is the fastest-growing retailer in the country by store count, according to Coresight. The company now has about 18,800 stores in the U.S., compared to the 5,000 it had in 2001. Dollar Tree has more than 16,000 locations, including Family Dollar stores, which the company acquired in 2015.
John Mercer, head of global research at Coresight, told the Journal that shoppers are also looking at dollar stores for groceries. Coresight finds that Dollar General and Dollar Tree stores are consistently among the most popular retailers for grocery purchases—ranking alongside Walmart, Target, Amazon and Kroger.
Last year, Dollar General announced that all of its locations now offer healthy food options, including assorted dairy items, frozen vegetables, proteins, canned fruits and vegetables, grains and more as part of an increased investment in its health and wellness offerings.
“With approximately 75% of the U.S. population living within five miles of a Dollar General, the company recognizes the unique access it provides to often-underserved communities,” wrote Dollar General in a statement. “While Dollar General is not a grocer, many DG stores serve communities without other retail options, and the variety of foods in DG stores reflect customers’ demand.”
(NACS offers resources for c-store operators to gain new ideas for increasing sales and meeting consumer demand for healthy food choices.)
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