Topic: Dollar Stores in the U.S. (2024)

As the name suggests, dollar stores predominantly sell all their merchandise at the price of one dollar, typically selling inexpensive items. With a rising cost of living, and the negative economic impact of the coronavirus (COVID-19) pandemic restricting people's budgets, these discount stores have been one of the retail sectors to profit from recent events. The dollar store industry has grown rapidly throughout the United States in recent years. As of 2021, there were over 35,000 dollar stores across the United States, an increase of roughly 5,000 since 2017. Companies operating within the dollar store model, such as Dollar General and Dollar Tree, feature in rankings of the leading American retailers, showing the success of this business strategy.

Two companies dominating the U.S. dollar store market

Two major players in the U.S. dollar store market are Dollar General and Dollar Tree, which purchased Family Dollar in 2015. In 2021, Dollar General's net sales amounted to more than 34 billion U.S. dollars, while Dollar Tree generated revenues of over 26 billion U.S. dollars that year, although Dollar Tree's figure incorporates sales made in Canada as well. The two companies each operate upwards of fifteen thousand retail stores throughout the United States. Just like in net sales and the store count, Dollar General leads the way in consumer loyalty among U.S. dollar store brands, although Dollar Tree follows closely behind.

Shopping behavior in dollar stores

Dollar store consumers are generally shoppers who are on a tight budget and are looking to save as much as they can. In a survey conducted in 2021, when U.S. consumers were asked why they shop at dollar stores, the most common answer was that they are less expensive than other stores. However, other reasons also garnered a significant share of responses. Dollar store shoppers found them convenient and enjoyed browsing there. In the same survey, the goods most Americans said they purchase from dollar stores were household goods, such as cleaning supplies or toilet paper, and home decor and party supplies.

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D. Tighe

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Published by D. Tighe, Dec 18, 2023

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U.S. retail sales: 7tr USD

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Market overview

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Store numbers and sales

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Dollar General

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Dollar Tree

Premium Statistic Dollar Tree: net sales in the U.S. and Canada 2007-2022
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Consumer behavior

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