Which Dollar Store Should You Really Be Shopping At?

There's no denying that dollar stores can be a great spot for budget-friendly shopping. In fact, according to a report by the Institute For Local Self-Reliance, in 2021, almost half of all new stores opened in the U.S. were chain dollar stores. There are now over 35,000 dollar stores, more than the combined total of all McDonalds, Starbucks, Target, and Walmart locations.

There is a reason why dollar stores are popping up all over the nation. Whether you're looking for household items, party supplies, or snacks, dollar stores offer a wide range of products at incredibly affordable prices. But with so many, it can be difficult to determine which one is actually the best to shop at and get the best bang for your buck.

The two largest players in the U.S. dollar store market are Dollar General and Dollar Tree, which purchased Family Dollar in 2015. We'll take a closer look at these three dollar stores and provide you with all the information you need to make an informed decision for where to shop.

Dollar Tree

Dollar Tree is one of the biggest and most well-known dollar stores in the country. As its name suggests, for 35 years, everything at Dollar Tree was $1. However, with inflation hitting 40-year highs, in November 2021 Dollar Tree announced that all of its merchandise would be raised to $1.25, a 25% increase in prices.

The company announced that as a result of the increase, it would reintroduce items that were constrained by the $1 price point and "materially expand its offerings, introduce new products and sizes, and provide families with more of their daily essentials."

Even with the price increase, Dollar Tree's 2022 revenue grew by 9% from the previous year and it opened over 460 new stores. Dollar Tree plans to open 650 more stores this year. Demand for Dollar Tree products remains high. This includes everything from cleaning supplies to snacks to holiday decorations.

One of the biggest perks of shopping at Dollar Tree is that you never have to question the price of anything you pick up. However, it is important to note that while the prices are still incredibly affordable, the quality of some items may not be quite as high and the availability of items is unpredictable.

Dollar General

Dollar General is another popular dollar store chain. Unlike Dollar Tree, not everything at Dollar General is one set price. For example, two different Schick Classic 3-blade, 3-count products are available for $5.35, which is a higher price than you might expect from a dollar store. Prices typically range from $3 to $10 for its products.

That being said, you can still find some great deals at this store. Even with more brand name products being introduced at Dollar General, the company advertises that over 2,000 items are still available for $1 or less. Dollar General is particularly known for its wide selection of household and cleaning products.

The store also offers a range of grocery items, including both name-brand and generic products. Based on your location, many stores also have coupons and deals for certain products.

Dollar General's net sales grew by over 10% and it opened 1,000 new stores in 2022. This year it plans to open 1,050 new stores, remodel another 2,000, and relocate 120 other stores. Dollar General is the largest dollar store with more than 19,000 locations.

Dollar General also has an app that offers significant discounts every week. One downside of shopping at Dollar General is that its prices can vary, making it a less predictable budget shopping destination.

Family Dollar

Family Dollar was bought by Dollar Tree in 2015. Together, both Dollar Tree and Family Dollar have over 16,000 locations. Unlike Dollar Tree, not everything at Family Dollar costs just $1.25. Prices for its items range between $1 to $10, with most items typically costing from $3 to $5. However, you can still find plenty of great deals on a variety of household and grocery items.

Family Dollar is known for its wide selection of snacks and packaged foods. Additionally, the store often runs sales and promotions that can help you save even more money. Family Dollar's net sales grew by almost 6% in 2022.

When it comes to picking a dollar store, there isn't necessarily a one-size-fits-all answer. Each chain has its own pros and cons. The type of product varies at each store based on season, location, and availability. The best store will be based on your shopping preferences, as well as the quality and quantity you want.

Remember, just because something is cheap doesn't necessarily mean you are getting a good deal. Dollar stores are able to offer lower prices because many of their products are smaller in size. You will want to compare the price per unit to be able to compare apples to apples. While Dollar Tree is a great option if you want everything to cost just $1.25, the quality and variety of products may not be as high as what you would find at other stores. Dollar General and Family Dollar both offer a wider range of items and may have more sales and promotions, but their prices can vary. It is best to take the time to compare prices and selections at each of these stores to determine which one is truly the best fit for your budget and shopping needs.