- The stores are neck-and-neck in terms of store count and annual sales.
- But, there are some big differences in the shopping experiences you’ll have at these stores.
Bargain-hunting has been the flavor of the past decade.
In the wake of the recession, cost-conscious consumers have flocked to off-price, thrift, and dollar stores in search of good deals. As a result, these stores have seen a surge in sales.
From 2010 to 2015, dollar store sales grew from $30.4 billion to $45.3 billion in the US, and hundreds of stores have opened. Credit-rating agency Moody’s said in a report on Dollar Tree that it is expecting 8% growth for the dollar-store segment in 2018. For US retail in general, it is expecting 3.5% to 4.5% growth in 2018.
Dollar Tree, which bought rival chain Family Dollar in 2015, has a slightly larger store count than Dollar General, but both sit around the 14,000-to-15,000-store mark. In terms of sales, Dollar Tree is a close second, generating $21.5 billion annually compared to $23.3 billion at Dollar General, according to Moody’s.
But there is a massive difference in shopping at these no-frills stores. First and foremost, Dollar Tree sells only products that are $1 or under, whereas Dollar General, which once did the same, is now more like discount retailer.
We visited both to see how they compared: