Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (2024)

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My first stop was a Dollar Tree store at a mall in Waldorf, Maryland. There was a wide variety of stuff inside, and it was almost all neat and tidy. One thing I noticed right away: Dollar Tree sticks closely to its $1.25 price point for most items. Other dollar stores carry higher-priced items, as I'd soon learn. After I visited, Dollar Tree announced it would be raising prices on some items. Like most dollar stores, there wasn't any fresh produce, but there was a wide range of frozen and packaged foods. Startup brands like Flow water were well-represented on Dollar Tree's shelves. Signage above the food section called attention to Dollar Tree's selection of snacks, which I found to be the most impressive part of the store. Some were things I had never seen before, such as these fruit snacks flavored like an Arnold Palmer. There were also lots of well-established brands, such as this orange soda from Faygo, which traces its roots over a century ago to Michigan. In general, the shelves seemed well-stocked. I wouldn't have a problem stocking my pantry at a store like this. And unlike some Dollar General stores that I've reported on, the aisles were free of any boxes, unpacked merchandise, or other obstructions. I ended up buying a few snacks and drinks as well as this pack of plastic food containers. This Dollar Tree also had a wide selection of crafting and wrapping supplies, such as these gift bags. I'm not a regular shopper at craft stores like Michael's, but this could be a money-saving alternative to those chains, depending on what you need. Overall, it was a fine experience. I found something that I needed for my kitchen, and I was impressed by the snack selection. My next stop was Dollar General. This store was also in Waldorf, though it was a few miles down the road from the Dollar Tree and is a stand-alone location instead of being part of a mall. This store reminded me of pictures that shoppers and workers had sent me before. I saw unpacked merchandise blocked many of the aisles, and what was on the shelves was often a mess. Grey plastic totes used to ship inventory from Dollar General distribution centers sat overflowing — or, in this case, on top of — the stuff that was actually for sale. I visited this store in the early afternoon, and there appeared to be just one employee on duty. They were dividing their time between stocking shelves and ringing up customers at the register. The boxes of unpacked merchandise blocked many of the shelves, making it hard to get a full picture of the merchandise that this store offered. Some sections were relatively more tidy and well-stocked, such as this cooler containing milk and juice. Other sections, such as this selection of school supplies, appeared simultaneously messy and understocked. Outside, I found rolltainers that were mostly full of cardboard boxes. In between some of the rolltainers, I found jugs of milk and other dairy products that appeared to have sat out of refrigeration for too long and spoiled. It clearly wasn't for sale anymore, but I wondered what had happened to it before it was thrown out, especially since it appeared to be well past its sell-by date. Overall, the store was just too chaotic to shop at. Unless it was my only option, I wouldn't go there. Fortunately, Dollar General is far from the only shopping option in Waldorf. There's a Food Lion less than a mile away, for instance. And just half a mile in the same direction is this Family Dollar store, where I stopped next. As I walked in, an employee greeted me and said "Welcome to Family Dollar." That didn't happen at either of the two stores that I visited previously. The store was a sharp contrast with the Dollar General I visited. The shelves were well-stocked, and the aisles were clear of boxes and inventory waiting to be unpacked. The range of grocery items was similar to Dollar General and Dollar Tree. There still wasn't any fresh produce, but items like milk were available. There were also lots of store-brand imitators of brand-name products, such as these "Pop-Ups." Like Dollar Tree, this store also had boxes of Flow water and other upstart food brands. But that selection comes at a price — literally. Many of the products at Family Dollar are far too expensive for a store like Dollar Tree to carry for just $1.25. Family Dollar had a selection of name-brand baby diapers, for example, which were on sale at two packs for $19. In that sense, the Family Dollar store I visited felt like a mini-Big Box store, or the small-format stores that Target has opened in many urban areas. Overall, the dollar stores I visited seemed best for packaged foods and random household goods, such as the food containers that I bought at Dollar Tree. If I lived in a community that had all three stores and had to pick between them, I'd probably shop at Family Dollar. The store was clean, the staff was friendly, and the selection of products seemed to be widest, although it was the priciest. FAQs

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Alex Bitter

2023-07-04T13:00:00Z

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (1)

Dollar General and Dollar Tree are some of the most common discount stores in the US.
But Dollar Tree grew same-store sales last quarter while they shrank at Dollar General.
I visited both stores and Dollar Tree has the advantage over its rival when it comes to cleanliness.

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Dollar stores have become a staple of shopping in the US. But some are doing better than others.

One of the largest dollar store chains, Dollar Tree, reported that same-store sales grew 6.9% during the latest quarter ended July 29. Rival Dollar General, meanwhile, said that same-store sales fell 0.1% for the quarter ended Aug. 4.

Both dollar store chains have benefited over the last few years thanks to expanding store networks and shoppers spending more on discretionary items, such as home decor and toys, early during the pandemic.

But a problem at Dollar General appears to be catching up with the company. Many of its stores have been overrun with merchandise for months or years. It sits in the aisles, blocking fire exits and making getting around the stores tough. In some cases, the mess has gotten so bad that stores have had to close to clean up.

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Dollar General executives said in the company's latest earnings call that they're finally taking action. Dollar General is making $95 million in item markdowns to quickly clear excess inventory from store shelves. Dollar General is also rolling out what CEO Jeff Owen called "smart teams," or groups of workers who move from store to store cleaning up the mess.

To see for myself how significant the disorder is at Dollar General, I visited some of their stores in Southern Maryland, about an hour's drive from Washington DC. I also visited other dollar stores, including one Dollar Tree and another that uses the Family Dollar name.

Dollar General declined to comment to Insider for this article. Dollar Tree, which also owns Family Dollar, did not respond to a request for comment.

Do you work or shop at Dollar General, Dollar Tree, or Family Dollar and have a story idea to share? Contact Alex Bitter by email at abitter@businessinsider.com or via text/encrypted messaging app Signal at (808) 854-4501.

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My first stop was a Dollar Tree store at a mall in Waldorf, Maryland.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (5)

There was a wide variety of stuff inside, and it was almost all neat and tidy.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (6)

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One thing I noticed right away: Dollar Tree sticks closely to its $1.25 price point for most items. Other dollar stores carry higher-priced items, as I'd soon learn. After I visited, Dollar Tree announced it would be raising prices on some items.

Alex Bitter/Insider

Like most dollar stores, there wasn't any fresh produce, but there was a wide range of frozen and packaged foods.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (8)

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Startup brands like Flow water were well-represented on Dollar Tree's shelves.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (9)

Signage above the food section called attention to Dollar Tree's selection of snacks, which I found to be the most impressive part of the store.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (10)

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Some were things I had never seen before, such as these fruit snacks flavored like an Arnold Palmer.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (11)

There were also lots of well-established brands, such as this orange soda from Faygo, which traces its roots over a century ago to Michigan.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (12)

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In general, the shelves seemed well-stocked. I wouldn't have a problem stocking my pantry at a store like this.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (13)

And unlike some Dollar General stores that I've reported on, the aisles were free of any boxes, unpacked merchandise, or other obstructions.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (14)

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I ended up buying a few snacks and drinks as well as this pack of plastic food containers.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (15)

This Dollar Tree also had a wide selection of crafting and wrapping supplies, such as these gift bags.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (16)

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I'm not a regular shopper at craft stores like Michael's, but this could be a money-saving alternative to those chains, depending on what you need.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (17)

Overall, it was a fine experience. I found something that I needed for my kitchen, and I was impressed by the snack selection.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (18)

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My next stop was Dollar General. This store was also in Waldorf, though it was a few miles down the road from the Dollar Tree and is a stand-alone location instead of being part of a mall.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (19)

This store reminded me of pictures that shoppers and workers had sent me before. I saw unpacked merchandise blocked many of the aisles, and what was on the shelves was often a mess.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (20)

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Grey plastic totes used to ship inventory from Dollar General distribution centers sat overflowing — or, in this case, on top of — the stuff that was actually for sale.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (21)

I visited this store in the early afternoon, and there appeared to be just one employee on duty. They were dividing their time between stocking shelves and ringing up customers at the register.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (22)

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The boxes of unpacked merchandise blocked many of the shelves, making it hard to get a full picture of the merchandise that this store offered.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (23)

Some sections were relatively more tidy and well-stocked, such as this cooler containing milk and juice.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (24)

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Other sections, such as this selection of school supplies, appeared simultaneously messy and understocked.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (25)

Outside, I found rolltainers that were mostly full of cardboard boxes.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (26)

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In between some of the rolltainers, I found jugs of milk and other dairy products that appeared to have sat out of refrigeration for too long and spoiled.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (27)

It clearly wasn't for sale anymore, but I wondered what had happened to it before it was thrown out, especially since it appeared to be well past its sell-by date.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (28)

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Overall, the store was just too chaotic to shop at. Unless it was my only option, I wouldn't go there.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (29)

Fortunately, Dollar General is far from the only shopping option in Waldorf. There's a Food Lion less than a mile away, for instance.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (30)

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And just half a mile in the same direction is this Family Dollar store, where I stopped next.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (31)

As I walked in, an employee greeted me and said "Welcome to Family Dollar." That didn't happen at either of the two stores that I visited previously.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (32)

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The store was a sharp contrast with the Dollar General I visited. The shelves were well-stocked, and the aisles were clear of boxes and inventory waiting to be unpacked.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (33)

The range of grocery items was similar to Dollar General and Dollar Tree. There still wasn't any fresh produce, but items like milk were available.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (34)

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There were also lots of store-brand imitators of brand-name products, such as these "Pop-Ups."

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (35)

Like Dollar Tree, this store also had boxes of Flow water and other upstart food brands.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (36)

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But that selection comes at a price — literally. Many of the products at Family Dollar are far too expensive for a store like Dollar Tree to carry for just $1.25.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (37)

Family Dollar had a selection of name-brand baby diapers, for example, which were on sale at two packs for $19.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (38)

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In that sense, the Family Dollar store I visited felt like a mini-Big Box store, or the small-format stores that Target has opened in many urban areas.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (39)

Overall, the dollar stores I visited seemed best for packaged foods and random household goods, such as the food containers that I bought at Dollar Tree.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (40)

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If I lived in a community that had all three stores and had to pick between them, I'd probably shop at Family Dollar. The store was clean, the staff was friendly, and the selection of products seemed to be widest, although it was the priciest.

Dollar Tree is crushing Dollar General in a key sales metric. I visited the rival stores, and it's strikingly clear why Dollar Tree is winning. (41)

FAQs

Why is Dollar General winning with store count? ›

“Most of this is because dollar stores serve relatively small catchments, so there's a lot of potential sites for new stores, including in rural areas. The [payback] time on a new store is quick, so it is relatively easy to push heavy expansion from a capital investment standpoint.”

See Details ›

Why is Dollar Tree stock falling? ›

Dollar Tree (DLTR) shares are plunging after reporting fourth quarter results that fell short of Wall Street expectations.

Get More Info ›

What is the goodwill impairment charge for Dollar Tree? ›

Results Include a $594.4 Million Charge for Portfolio Optimization Review, a $1.07 Billion Goodwill Impairment Charge, and a $950 Million Trade Name Intangible Asset Impairment Charge.

Tell Me More ›

Are Dollar General and Dollar Tree competitors? ›

Dollar Tree competitors include Walmart, SUPERVALU, Dollar General, Family Dollar Stores and 99 Cents Only Stores.

Why is Dollar Tree losing money? ›

For fiscal 2023, the company lost $998 million, versus a profit of $1.6 billion in 2022. The key reason for its loss is a $594.4 million charge for portfolio review, a $1.07 billion goodwill impairment charge, and a $950 million trade name impairment charge.

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What is Dollar General competitive advantage? ›

The Convenience Factor: Basic but Effective 🛍️

Dollar General stores are basic and often not the most organized, but they offer convenience and low prices. This no-frills approach keeps their costs down and makes them the go-to option for their target customer base.

Get More Info Here ›

Why is Dollar General stock falling? ›

It seems as though Dollar General's management expected sales to continue to surge, which resulted in the company holding too much inventory. Those overstocked shelves have led to lower profits. Its full-year net income was $1.7 billion compared to $2.4 billion in fiscal 2022.

Show Me More ›

Why are they shutting down the Dollar Tree? ›

Dollar Tree swung to a surprise fourth-quarter loss and will close nearly 1,000 stores after the discount retailer slashed the value of a rival chain it acquired almost a decade ago.

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Is Dollar Tree a good investment right now? ›

Dollar Tree has 30.81% upside potential, based on the analysts' average price target. Is DLTR a Buy, Sell or Hold? Dollar Tree has a consensus rating of Moderate Buy which is based on 12 buy ratings, 7 hold ratings and 1 sell ratings.

What is the Dollar Tree lawsuit 2024? ›

Plaintiff Donna Bell claims in her lawsuit that she purchased Supreme Tradition ground cinnamon in March 2024 at a Dollar Tree store in the Bronx, New York. She alleges that neither company disclosed the lead contamination and that she wouldn't have bought the product if she had known.

Get More Info Here ›

Is Dollar Tree infested with rats? ›

Family Dollar, Dollar Tree to pay $41 million fine for rat infestation.

Know More ›

Can you have piercings at Dollar Tree? ›

Additionally, Dollar Tree employees can wear hats with the Dollar Tree logo at work. Dollar Tree has a fairly strict dress code policy beyond the work uniform. While piercings and visible tattoos are allowable at the manager's discretion, they are typically discouraged.

Who is Dollar Tree's rival? ›

Dollar Tree's competitors. Dollar Tree's competitors and similar companies include Target, Dollar General, Walmart, SuperValu and JD.com. Dollar Tree is an operator of discount variety stores. Target is a general merchandise retailer selling products through stores and digital channels.

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Is Dollar General owned by Walmart? ›

Dollar General has a diverse ownership structure, with several major institutional investors holding significant stakes in the company. The top shareholders as of September 2023 are Vanguard Group, Inc., BlackRock, Inc., Capital International Investors, Capital World Investors, State Street Corporation, Price (T.

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What is the difference between Dollar General and Dollar General Market? ›

Dollar General Market and DG Market formats offer expanded produce, refrigerated and frozen food offerings, dairy products and more, in addition to an assortment of fresh meats, alongside the general merchandise customers trust Dollar General to provide.

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What is the Dollar General strategy? ›

Dollar General's business strategy is centered on creating profitable growth while keeping its image as a low-cost provider and seizing opportunities for growth.

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What is Dollar General changing their name to? ›

In an effort to cater to customers who want a more upscale shopping experience, Dollar General is opening retail locations that operate under a different brand. These stores are called pOpshelf, and they're meant to appeal to wealthier and more suburban customers.

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Why is Dollar General so disorganized? ›

Aisles at many Dollar General stores have been clogged with everything from dog food to school supplies over the last few years. Employees have told Insider that one cause for the mess is that Dollar General hasn't allocated enough worker hours to maintaining them.

Get More Info Here ›