Winter storm Elliott put its mark on Dollar General’s fourth quarter 2022 financial results, as the retailer reported numbers that were a touch below expectations.
The storm kept shoppers at home and also hit Dollar General with inventory damage. As a result, fourth quarter same-store sales were up just 5.7%, which is below the company’s projection of 6-7%. In December, when Elliott wreaked havoc, same-store sales were 4.5%. However, Dollar General continues to show market share gains in sales in both consumable and non-consumable products.
Dollar General was looking at FY 2022 increases of 4-4.5% for same-store sales, and actual data came in at 4.3%. The retailer will dive deeper into FY 2022 fourth quarter results as well as FY 2022 as a whole during a call on March 16.
Dollar General is not expecting FY 2023 to be a banner year, projecting same-store sales growth in the range of 3-3.5%.
Dollar General announced it was extending its financial service offerings, which includes a cash back option for consumers.
The retailer is partnering with Denver-based Ibotta, a provider of cash back rewards technologies, to give shoppers rewards on thousands of items at its more than 18,800 stores in 47 states.
As part of the partnership, Dollar General joined the Ibotta Performance Network (IPN), a digital network that delivers coordinated promotions across retailer platforms, large third-party publisher sites, and Ibotta’s direct-to-consumer properties.
Dollar General is the first retailer in its channel to join the IPN.
“Ibotta’s cash back rewards program further complements our continuous efforts to provide financial offerings and rewards to customers,” Emily Taylor, Dollar General executive vice president and chief merchandising officer, said in a statement.
Dollar General in 2022 launched a series of financial services to increase consumers’ access to banking options and offer additional payment alternatives.
They include the introduction of the spendwell banking platform which provides Dollar General customers with a no monthly fee financial account, along with the ability to earn 1% unlimited cash back for redemption of purchases at Dollar General stores.
In addition, last year Dollar General began piloting a program that gives customers the opportunity to redeem credit and debit card rewards points toward their Dollar General purchases using the FIS Premium Payback real-time rewards redemption network.
In 2022, the company also announced plans to test a buy-now, pay-later option at more than 1,700 stores in Texas. The program enables shoppers to pay for their purchases in four installments with zero interest.