What drove DG's revenue cost increase in 2025?

Dollar General's (DG) revenue and cost increase in 2025 can be attributed to several key factors:

1. **New Store Openings and Same-Store Sales Growth**: Revenue increased due to new store openings and a 4.5% rise in same-store sales, which was primarily driven by a 2.3% increase in average transaction amounts. This growth in sales was partially offset by the impact of store closures.
2. **Strategic Initiatives**: The company's "Back-to-Basics" strategy, which focused on improving operational execution and enhancing the in-store customer experience, likely played a significant role in this performance. Additionally, the expansion of delivery services to 10,000 stores by the end of 2025 could have contributed to sales growth.
3. **Macroeconomic Factors**: Despite the challenges posed by inflation and economic uncertainty, Dollar General's emphasis on private-label brands and everyday essentials likely resonated with consumers, benefiting from the trend of shoppers seeking value amid inflation. The overall positive market response to the company's performance and future prospects, as reflected in the earnings call transcript, suggests that these strategic moves and macroeconomic conditions collectively drove the revenue increase.

In summary, Dollar General's revenue growth in 2025 was primarily driven by new store openings, same-store sales growth, strategic initiatives, and favorable macroeconomic conditions, despite the challenges posed by inflation and economic uncertainty.