How Does Dollar General Make its Money?
Dollar General is the largest discount retailer in the United States by store count, operating over 20,000 stores across 48 states. The company targets rural and low-income communities with a small-format, convenience-focused store model, offering everyday essentials — household products, food, health and beauty items — at low prices. Dollar General has been one of the fastest store openers in retail history, but has faced headwinds from operational execution issues, including safety concerns, inventory management problems, and competitive pressure from Walmart and dollar store rivals. The company is undergoing a ‘Back to Basics’ operational improvement plan.
Dollar General (DG) Business Model
Dollar General operates in the retail sector. Below is a summary of Dollar General’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Dollar General’s 2024 fiscal year filings with the SEC.
Dollar General Competitors
Dollar General’s key competitors and comparable public companies in the retail sector include Walmart, Costco, Target, and TJX Companies. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Dollar General stacks up by comparing their revenue breakdown, margins, and growth metrics.
Dollar General Competitors
Dollar General’s key competitors and comparable public companies in the retail sector include Walmart, Costco, Target, and TJX Companies. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Dollar General stacks up by comparing their revenue breakdown, margins, and growth metrics.
Dollar General Competitors
Dollar General’s key competitors and comparable public companies in the retail sector include Walmart, Costco, Target, and TJX Companies. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Dollar General stacks up by comparing their revenue breakdown, margins, and growth metrics.
Dollar General Competitors
Dollar General’s key competitors and comparable public companies in the retail sector include Walmart, Costco, Target, and TJX Companies. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Dollar General stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Segment | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| Consumables (Food, Cleaning, Paper, Health) | $33,000 | $32,000 | +3.1% |
| Seasonal | $3,500 | $3,400 | +2.9% |
| Home Products | $2,200 | $2,300 | -4.3% |
| Apparel | $1,300 | $1,300 | +0.0% |
| Total Revenue | $40,400 | $39,000 | +3.6% |
Consumables (Food, Cleaning, Paper, Health) — 82% of Revenue
Seasonal — 9% of Revenue
Home Products — 5% of Revenue
Apparel — 3% of Revenue
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $40,400 | $39,000 |
| Cost of Revenue | $28,600 | $27,400 |
| Gross Profit | $11,800 | $11,600 |
| Operating Expenses | $9,600 | $9,300 |
| Operating Income | $2,200 | $2,300 |
| Net Income | $1,400 | $1,600 |
All values in millions USD unless otherwise stated.
Key Financial Metrics
- Gross Margin: 29.2%
- Operating Margin: 5.4%
- Revenue Growth: 3.6%
Is Dollar General Profitable?
Yes, Dollar General is profitable. The company reported net income of $1,400 on total revenue of $40,400. With an operating margin of 5.4%, Dollar General demonstrates solid profitability for the retail sector. The gross margin of 29.2% reflects Dollar General’s pricing power and cost structure.
What to Watch
- Back to Basics initiative: store standards, in-stock rates, and employee retention
- Comparable store sales growth as the core consumer faces economic pressure
- Operating margin recovery from recent lows through labor and shrink improvements
- New store opening pace and maturation of recent store cohorts
Dollar General (DG) Financial Summary
Dollar General (DG) is a retail company that generated $40,400 in total revenue in fiscal year 2024. Revenue grew 3.6% year-over-year. The company earned $1,400 in net income, making it profitable. For a deeper look at Dollar General’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.