Dollar Tree and Dollar General Continue to Expand

The dollar-store chains are on track to open more than 1,300 new locations this fiscal year.

September 19, 2024

Dollar stores are contending with slowing sales and weaker earnings, but that is not stopping them from pursuing an aggressive expansion, reported The Wall Street Journal.

The Journal reported that “Dollar General and Dollar Tree … are together on track to open more than 1,300 new locations this fiscal year. That is down from last year. But it still far outpaces other retailers’ expansions, reflecting dollar-store executives’ belief that new stores are the key to juicing sales and capturing market share.”

Dollar stores, which are largely in-person shopping experiences, are also at a strategic disadvantage when it comes to e-commerce, said the Journal. Rivals such as Walmart and Target have “invested heavily in recent years to integrate physical stores with online shopping through delivery services and in-store or curbside pickup of items ordered online.”

Dollar Tree offers in-store pickup of items bought online at some stores, and its Family Dollar customers can now buy SNAP-eligible products through Instacart delivery.

The Journal also said that “competition and price cuts from rival discount retailers are also hurting sales.”

Dollar Tree, meanwhile, “is expanding its assortment at a wider price range and considering selling its underperforming Family Dollar chain, which it acquired for roughly $9 billion in 2015 but never succeeded in turning around. The parent company closed nearly 700 stores this year, mostly Family Dollars, but is still expanding through its namesake chain.”

Dollar Tree has opened more than 300 new stores across both banners so far this year, and this spring the retailer purchased 170 leases of the bankrupt 99 Cents Only Stores chain, the Journal said. The company has already reopened more than 100 of those locations as Dollar Trees and plans to add at least 50 more by the end of 2024.

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