Dollar General Corp. (DG) Global Consumer and Retail Conference 2026 — Key Takeaways

Equity Research 15 September 2026 | 8:29PM EDT

Dollar General Corp. (DG): Global Consumer and Retail Conference 2026 — Key Takeaways

Kate McShane, CFA | Goldman Sachs & Co. LLC

Grace Chee | Goldman Sachs & Co. LLC

Presenters: We hosted Todd Vasos, Chief Executive Officer, Emily Taylor, Chief Mark Jordan, CFA | Operating Officer, and Donny Lau, Executive Vice President & Chief Financial Officer, Goldman Sachs & Co. LLC at the Global Consumer and Retail Conference. Emily Ghosh | Bottom Line: Dollar General is benefiting from elevated fuel prices, as its extensive Goldman Sachs & Co. LLC store footprint and delivery capabilities are resonating with consumers under pressure who are increasingly shopping closer to home. Management also reiterated Nishi Agarwal | confidence in its long-term algorithm, highlighting that supply chain, Goldman Sachs India SPL non-consumables, and DG Delivery initiatives continue to perform ahead of Samantha Chiang expectations. | Goldman Sachs & Co. LLC

n Health of the Consumer: Consumers across all income cohorts remain under pressure amidst higher gas prices, as they are shopping closer to need with a smaller basket. Per management, even higher income consumers are starting to exhibit characteristics similar to the lower income consumer. However, despite these macroeconomic pressures, management stated that the consumer remains resilient as long as they are employed. Dollar General also noted that the business is a beneficiary of these higher gas prices, as their 21,000+ store base accommodates consumers who are not willing to drive farther distances. Notably, some lower income consumers end up shopping Dollar General more frequently as they try to stock up on items in case of future macroenvironment changes. Management is also confident that they can retain the new customers they are serving, given their strong value proposition and improved targeted marketing capabilities. n Price Investments and Promotional Levels: Dollar General continues to monitor price carefully among competitors, noting that they have a 20% price gap with grocery, 30% price gap with drug, and 2-4% gap with mass retailers. The company continues to differentiate itself through their $1 assortment, as

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Goldman Sachs Dollar General Corp. (DG)

they increased the category to over 2000 items, increased the $1 seasonal assortment by +40%, and are expanding the $1 frozen food section to more stores in the 2H. If inflationary prices persist, management is not concerned as they are a limited SKU retailer and are a top partner with CPG companies. Per management, CPG companies enjoy partnering with Dollar General as it provides their business with incremental dollars and allows customers to try trial versions of their product, which could lead to the purchase of the full product. n DG Delivery: Management noted that they are still in the early days of scaling the delivery platform for both 1P and 3P. Based on customer demand, the company is planning to launch a pilot subscription program at the end of the year, which will scale until next year. The program has led to 80% incrementality and one million new customers, who shop with bigger baskets across all categories. As the delivery program scales, DG Media should scale as well, with the platform highly accretive to the gross and operating margin. Management acknowledged that prior to their delivery program, they likely lost share to other competitors on convenience. n Long Term Algorithm: Management feels confident in their long-term algorithm, noting that they are ahead of schedule in delivering on their margin initiatives. Specifically, supply chain was an…