Dollar General Offers Cash Back as Consumers Hunt Low Prices

Dollar General says it wants to help its customers earn cash back on purchases.

The discount retailer recently debuted its DG Cash Back Program, which — via its partnership with rewards provider Ibotta — lets shoppers earn cash back in their DG Wallets.

“As customers continue to seek new ways to stretch their budgets, we’re excited to introduce DG Cash Back on hundreds of Dollar General items to help them achieve that goal,” Dollar General Chief Marketing Officer Chad Fox said in a news release.

“This is a strong addition to our financial offerings and services as we continue to expand incremental benefits for our customers.”

Shoppers can sign up for the program on the Dollar General website or via the DG mobile app. From there, they can add offers available on the “Deals” page to their profile, and redeem earnings from the program for future in-store purchases.

According to the news release, DG Cash Back builds on Dollar General’s partnership with Ibotta, first announced in January 2023.

As PYMNTS reported earlier this year, the company has been working to expand its digital engagement and its financial services offering, which it introduced last year.

The company’s efforts to seek out bargain-hunting shoppers is happening at a time when more than 70% of consumers say their decisions around retailer loyalty comes down to low prices, according to recent PYMNTS research.

“Within today’s challenging macroclimate, consumers are looking to cut back on everything but the necessities and frequently can’t afford to be loyal to their favorites when they spot a better deal,” PYMNTS wrote earlier this week.

“As deal-chasing becomes the dominant shopping determinant du jour, grocers, pharmacies, and retailers more broadly need to identify the digital features and loyalty promotions they can provide in order to promote customer stickiness and accelerate retention.”

One of the ways discount retailers are working to attract shoppers is via partnerships with well-known brands, a trend noted here last month.

“As the stigma around shopping at dollar stores fades and the demand for affordable alternatives and replicas increases, brands and retailers are becoming more inclined to provide top-notch products at discounted prices,” that report said.

Dollar General is among the retailers in question, working with Unilever to sell that company’s clean beauty collection Yes! Honey, which was created exclusively for Dollar General.

According to Unilever, the brand offers natural ingredients at a lower price, a shift from the usual high costs associated with clean beauty products available at places like Sephora.