6. Only Two Main Dollar Stores
Yes, there are the smaller guys like Five Below and 99 Cents Only, but for the most part, there are just two main dollar stores — Dollar Tree (which owns Family Dollar) and Dollar General. Dollar Tree has more than 15,000 locations, and Dollar General has more than 16,000 locations.
They each amassed well over $20 billion in revenue last year. By contrast, second-tier competitor Five Below has only 1,000 locations. The specialty discount store amassed just over $1.8 million in revenue last year.
5. They’re Pressuring Big and Small Competitors
Competitors big and small are feeling the pinch from the growth of dollar stores. And, it’s especially hard on the small guys. As The New York Times stated in 2017, “dollar store chains are beginning to take over neighborhoods where mom-and-pop dollar stores have traditionally dominated.
Many independent store owners and workers say they are facing a bleak future as their customers have more choices, and rising rents and operating costs further cut into their dwindling profits.”
But, just because dollar stores are doing well doesn’t mean they aren’t feeling the pressure, too. As a matter of fact, they struggle to keep up with Amazon (I mean, who doesn’t?).
“Even with their great deals, dollar stores feel the same pinch as other retailers when the economy softens,” Cheapism wrote on its website.