There are over 15,000 Dollar General stores in the US and by the end of 2020, just over half of these will offer FedEx drop-off and collection services.
This new partnership, which was announced on Monday, is mutually beneficial. It enables FedEx to offer convenient services to a broader range of shoppers (thanks to Dollar General’s giant store base) and gives these customers another reason to visit a Dollar General store. The hope is that by offering more services customers become more loyal, use the store more frequently, and spend money on other things when they’re there.
It will also help Dollar General to take on Walmart, which offers its own FedEx shipping services at 500 of its stores.
Dollar General, which is known for being a bargain hunter’s paradise, has been described as growing at a pace that is largely “unthinkable” in retail and is becoming a bigger force against the US’ biggest retailer, Walmart.
According to recent data from GlobalData Retail, 75% of the US population is now within five minutes of a Dollar General store; 37% live within five minutes of a Walmart store or roughly 90% within 15 minutes.