Dollar General, the discount retail chain known for low prices and convenience, is venturing into an unexpected new business: fuel. The company has expanded a pilot program in Alabama into more than 40 stores across the South, where customers can now fill their tanks while picking up household essentials.
While Dollar General’s move into fuel is more cautious than Walmart’s and Costco’s versions, the strategy taps into a broader trend of blending convenience with essential services. Quartz reported that Elizabeth Lafontaine, director of research at Placer.ai, noted, “Retailers are looking for ways to incentivize consumers to forgo competitors, and adding gas offerings is certainly a lever that chains can utilize.”
Dollar General’s fuel push reflects increasing competition in the discount retail sector, especially as customers seek convenience and low prices amid economic uncertainty. The combination of fuel stations with its existing store network could drive more frequent visits and increase basket size.
Related: Walmart Makes Big Move to Compete With Costco
According to experts, this experiment is about more than just gasoline. “As traditional gas fueling stops take an average of seven minutes, EV charging can take half an hour or longer,” said Manish Choudhary of SymphonyAI. “This extended downtime presents a unique opportunity for retailers to engage shoppers in stores.”
In a retail landscape where loyalty is increasingly elusive, Dollar General’s move is both retro and forward-thinking. It caters to current consumer habits while laying the groundwork for potential future EV charging stations.
For now, the question is whether Dollar General’s gas station experiment will pay off—and whether more discount chains will follow suit.
