"Austin Leonard, three months into leading Dollar General's retail media network, is betting that the retailer's more than 20,000 stores in underserved markets represent an untapped advertising goldmine. With a surprising adoption of digital behaviors among this audience, and over 90 million addressable shopper profiles, Leonard argues Dollar General offers brands access to rural audiences that traditional e-commerce giants can't reach. Leonard frames Dollar General's advertising proposition with a compelling thesis: "We're essentially building the last mile of e-commerce for the last mile of America.""
"Through marketplace partnerships with DoorDash and Uber, Leonard reports that customers acquired through these channels are highly incremental to Dollar General. This customer acquisition metric challenges assumptions about market saturation in Dollar General's core territories, tracked through backend infrastructure that identifies whether customers have purchased before. Dollar General's price advantage, combined with its extensive location network, enables same-day and one-hour delivery better than larger competitors, introducing the brand to customers who may have mistakenly categorized Dollar General as a dollar store."
Dollar General operates more than 20,000 stores in underserved markets and maintains over 90 million addressable shopper profiles. Customers in these communities show strong digital adoption and higher use of same-day delivery than commonly assumed. Marketplace partnerships with DoorDash and Uber deliver highly incremental customers, validated by backend tracking of repeat purchases. Store density and a price advantage enable same-day and one-hour delivery capabilities that outpace larger competitors in many locations. Advertising perspectives centered in coastal urban markets lead to underestimation of rural consumer behavior and missed targeting opportunities.
Read at The Drum
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