Another strength is that the stores just simply aren't that big. I've been to Wal-Marts in rural parts of the lower Midwest that are simply too huge for the population density. Somehow they manage to stay open, but I am never entirely sure how. DG, on the other hand, tends to be half to a third of the size and does very well on the basis that they pretty much only sell stuff that people are actually gonna need on a regular basis. Combine that with the logistics you mentioned, and it's bound to be able to at least sustain itself.

Wal-Mart has tended to understaff its stores. Results are dirtier, messier, more crime-friendly stores. They've off-loaded their security/loss prevention expenses on to local police departments: https://www.bloomberg.com/features/2016-walmart-crime/

I guess since the land is cheap and they built the building they operate out the operating cost isn't much higher like it would be were they renting space in a developed urban area. Plus it is like they are investing in the real estate as I've seen a few small towns grow a lot in population after Walmart moved in.

Enormous TIF subsidies, mostly.

TIFs are so evil. I avoid stores so sited (and their ~25% "tax") when I can, but their very existence harms the credit of every county and most municipalities I know. They don't even perform their supposed role of restoring "depressed" areas, because a third of them are out in the country and another third just replace one profitable business with another (with a ~3 year interim of nothing at all on the site while the lawyers and lobbyists do their evil shit). The whole phenomenon is just a scheme for zoning boards etc. to enjoy corruption.

https://en.wikipedia.org/wiki/Tax_increment_financing for those who are not familiar with TIF.

Its the last vestige of industry in small town america, it seems. Wonder what happens when it, too, goes away.

The cost to setup a dollar general has to be 1/100th of the cost of a walmart store.

Are they franchises or company owned?

Article says 15m to start a new Supercenter, 250k for a DG

In my hometown, Wal-Mart left years ago and now there are 5 DG stores within a 5 mile radius. The town only has 5000 people or so. All of those stores stay busy.