Last Updated on March 8, 2022
Two of the biggest dollar stores in America are Dollar General and Dollar Tree. You can’t go anywhere in America without running into at least one of them. Dollar General rules supreme in rural areas and also many urban areas, while Dollar Tree is especially popular in larger towns and bigger cities.
Some people might wonder if they’re connected in any way. Are Dollar General and Dollar Tree related? Or are they just competitors?
The short answer is that Dollar General and Dollar Tree are separate companies. They’re competitors, just like Walmart and Target, CVS and Walgreens, or AT&T and Verizon.
A Little Background:
Dollar Tree, founded in 1986,was first known as as Only $1.00. The co-founders of the store had operated other other retail stores in the past, but by the 1990s had honed in on dollar stores as a potential long-term road to profit. In 1991, the owners sold all of their other non-dollar stores, focusing in on the dollar store market. Then, in 1993, the company renamed itself Dollar Tree, just in case it might sell products for over a dollar. Two years after that, in 1995, the company went public, selling stock, and in the 1990s and 2000s bought out other, smaller dollar chains, turning them into Dollar Trees. And in 2015, Dollar Tree bought out Family Dollar.
Dollar General, meanwhile, was founded in the 1950s by a father and son. The pair had been running department stores since the 1930s but were intrigued at how effective dollar item promotions were in stores. Their first true dollar store launched in 1955, and while some items in the chain were more than a dollar, the name stuck. Dollar General grew rapidly, especially into rural areas where there was little or no competition, and in time it would become the largest dollar chain in America. The company started selling stock in 1968, briefly went private in 2007, and in 2009 started selling stock again.
While you could argue that the two companies are competitors, they also have different approaches that give them different customer bases. Dollar Tree is what is known as an extreme discounter, with everything costing the same low price. Until recently, that price was $1, but it is now $1.25. Dollar Tree markets itself heavily to people on a strict budget, and while you can find some of their stores in rural areas, they’re especially popular in larger towns and big cities.
Dollar General is more of a general store, providing a wide range of products at different and mostly low prices. Dollar General markets itself as a place where you can get a lot of basics. In rural America, DG may not have any competition for miles, so shoppers — including locals, visiting campers, and the like — there rely on it to get the important things they need, especially if they can’t or don’t want to drive farther to a bigger area. But Dollar General is a force in cities, too, especially because you can usually get in and out faster than a big box store.
While the two stores attack slightly different markets, they’re still competitors. In fact, the two battled in the 2010s over the right to buy Family Dollar, which at that point was ready to be purchased. Dollar General had the advantage of deeper pockets and made a higher bid, but Family Dollar ownership worried that the government might reject the purchase. Why? Because Dollar General and Family Dollar were so similar in how they operated that it might look like a monopoly or trust. Instead, Family Dollar took Dollar Tree’s bid, which was lower but more likely to happen. Dollar Tree completed its bid in 2015.
Both Dollar General and Dollar Tree continue to grow, adding new stores all the time. They’re doing it, though, as competitors, not as the same company.
FAQs
In a time of persistent inflation, it's hard not to like the prices at dollar stores, including the combined 35,487 locations owned across the U.S., Canada, and Mexico by Dollar General and Dollar Tree Inc., which is itself the parent company to Family Dollar and Dollar Tree.
Is Dollar Tree and Dollar General the same store? ›
So in case you're wondering, Dollar General isn't a dollar store at all. It's more comparable to Family Dollar — which is Dollar Tree's more expensive sister store.
Who is the parent company of Dollar General? ›
An investment group consisting of affiliates of Kohlberg Kravis Roberts (KKR), GS Capital Partners (an affiliate of Goldman Sachs), Citigroup Private Equity and other co-investors completed an acquisition of Dollar General Corporation for $6.9 billion.
What is the difference between Dollar General Family Dollar and Dollar Tree? ›
Dollar Tree offers a large selection of grocery items for under $1, but usually only one type of each item — and that's often a generic label. While Dollar General and Family Dollar may have a wider variety, they both usually mark up these products with prices exceeding $1.
What is the controversy between the Dollar Tree? ›
The company has just been named in a new consumer lawsuit.
According to the lawsuit, Dollar Tree and Family Dollar have reportedly been aware of a "massive and long-lasting" rodent infestation at the center since at least Jan. 2020, based on reports from federal inspectors and Family Dollar's own internal records.
What is the Dollar General controversy? ›
Since 2017, the federal agency has proposed more than $21 million in fines against Dollar General. Inspectors commonly found aisles, emergency exits, fire extinguishers and electrical panels blocked by merchandise and boxes stacked unsafely, according to the agency.
Does Walmart own Dollar General? ›
Walmart does not own Dollar General. The company hasn't owned Dollar General in the past, and in all probability will not own it in the future as well. That said, Walmart does own a flurry of other companies. The most prominent ones are Sam's Club in the U.S., Flipkart in India, and Massmart in Africa.
Which is cheaper Dollar General or Walmart? ›
In fact, Walmart cost less than Dollar General in our price comparison. We checked prices on a basket of common goods in their online stores. Walmart was cheaper overall, and beat Dollar General in 10 out of 12 of the items in our basket.
What is Dollar General changing their name to? ›
Now, the company will expand its push to win wealthier customers in the suburbs using a new store model and name: Popshelf. Dollar General (DG) said Thursday it will open 1,000 Popshelf stores over the next four years. The retailer first introduced the concept last year and has 30 Popshelf stores today.
Does China own stock in Dollar General? ›
Dollar General is not owned by China. However, the company buys a large portion of its merchandise from China.
Acquisition by Dollar Tree
On July 28, 2014, Dollar Tree announced that it would acquire Family Dollar for $74.50 per share, a deal valuing Family Dollar at $8.5 billion, and that Dollar Tree would also assume $1 billion in debt currently owed by Family Dollar, for a total of $9.5 billion.
When did Dollar Tree stop being a dollar? ›
Dollar Tree branched away from its trademark $1 dollar pricing at the end of 2021, when it pushed prices of the vast majority of products up to $1.25.
Who is more successful Dollar Tree or Dollar General? ›
Dollar General's brand is ranked #335 in the list of Global Top 1000 Brands, as rated by customers of Dollar General. Their current market cap is $48.43B. Dollar Tree's brand is ranked #259 in the list of Global Top 1000 Brands, as rated by customers of Dollar Tree. Their current market cap is $30.51B.
Why Dollar General is better than Dollar Tree? ›
While Dollar Tree sells every item for just $1.25, the quality of these products might not be the best. Some of the products may not last for long, and you might have to replace them quickly. On the other hand, Dollar General sells products that cost more, but you can expect the quality to be higher.
Can you use Dollar Tree gift card at Family Dollar? ›
The combo stores don't take Dollar Tree gift cards — yet.
When that finally happens, expect to see Dollar Tree gift cards work at Family Dollar stores nationwide, and vice-versa.
Does Walmart own Family Dollar or Dollar General? ›
Walmart does not own Dollar General. The company hasn't owned Dollar General in the past, and in all probability will not own it in the future as well. That said, Walmart does own a flurry of other companies. The most prominent ones are Sam's Club in the U.S., Flipkart in India, and Massmart in Africa.
Who is the founder of Dollar Tree? ›
Macon Brock, Doug Perry, and K.R. Perry started K&K Toys in Norfolk, Virginia. This mall concept toy store grew to over 130 stores on the East coast. The K&K 5&10 store continued to exist and served as the foundation for what would become Dollar Tree.
