Family Dollar Expanding Delivery to 6,000 Stores

Encouraged by a trial that was providing new convenience to shoppers while generating higher average rings and attractive baskets for the retailer, discounter Family Dollar is expanding availability of delivery service via Instacart to 6,000 of its stores in 46 states and Washington, D.C.

Instacart, the San Francisco-based delivery platform, said the new offering would provide same-day delivery of Family Dollar’s selection of household goods, pantry and baby essentials, electronics, office and school supplies, personal care items, and more in as little as an hour.

Family Dollar, a division of Chesapeake, Va.-based Dollar Tree Inc., operating 7,800 stores nationwide, tested Instacart service at 275 of its stores beginning late last year. Family Dollar CEO Mike Witynski this week said the chain was “encouraged” by the results of that pilot. In a late November conference call with analysts, he described order sizes and product mixes that were favorable for the retailer, enabling it to accommodate the changing demands of shoppers—namely the convenience trend supercharged by contact fears that came with the pandemic and has led outsized growth in e-commerce across the industry.

“We really like the basket size,” Witynski said, according to a Sentieo transcript. “We like the product that they are buying inside the basket, and we’re excited about offering that opportunity to our customers as they shift in some of their behaviors.”

Efficient discounters such as Family Dollar have been a relative laggard in providing online shopping options for customers, given the relative high cost of developing the service, and have tended to lean on outsourced providers like Instacart. Family Dollar has also been experimenting with Shipt at some locations, Witynski has said.

“Family Dollar offers a variety of low-cost items for the entire family, and we’re proud to partner with them to offer same-day delivery nationwide. As one of the nation’s fastest-growing retailers, we’re excited to help Family Dollar connect with and serve the delivery needs of their customers, and look forward to partnering with them to offer even more selection and choice to customers on the Instacart marketplace,” Chris Rogers, VP of retail for Instacart, said in a statement.