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Budget-conscious shoppers love discount retailers like Dollar General and Dollar Tree. Both stores offer rock-bottom prices and a wide assortment of merchandise, so they are indispensable for shoppers looking for deals that can’t be found anywhere else.
While Dollar Tree remains a strong option for bargain hunters, we talked to David Bakke, frugal shopping expert at DollarSanity, and Abid Salahi, co-founder of FinlyWealth, who both believe that Dollar General is the better choice for frugal shoppers.Here’s why.
Product Selection and Quality
One of the primary draws of Dollar General for shopping experts is the store’s big product selection. While Dollar Tree is limited to items that literally cost just $1.25, Dollar General offers a much wider range of price points, with a lot of name-brand goods available right alongside the typical dollar store fare.
“At Dollar Tree, everything actually costs [around] $1,” said Bakke. “With Dollar General, not so much, but I still prefer it because the superior quality of their products justifies paying the extra price. And all in all, it’s not that significant of a price jump.”
Dollar General really stands out with the breadth and depth of what they offer, our experts say. You can find everything from name-brand laundry detergent to high-quality electronics, all at prices well below the big retail chains.
This wider selection also translates to better overall product quality. The items at Dollar General feel more substantial and durable than what you’d find at Dollar Tree. There’s a noticeable step up in terms of craftsmanship and materials used.
“At Dollar Tree, in some product categories such as paper plates, batteries, and a few others, you have one choice — whatever is on their shelf,” said Bakke. “At Dollar General, you can actually do some price comparisons which is a benefit in my opinion.”
One-Stop Convenience
Both Dollar General and Dollar Tree offer a wide range of products for customers to choose from. However, many shoppers have come to prefer the even larger selection that they can find at Dollar General stores.
“Dollar General boasts a broader selection of household essentials, from cleaning supplies and paper products to basic toiletries and a decent frozen food section,” said Salahi. “This one-stop-shop approach saves me precious time and gas money compared to bouncing between stores.”
Being able to get such a broad range of goods all in one place is a big draw for customers. They can save time and money by avoiding the need to go to multiple stores to fulfill all of their shopping needs.
In addition to the wide assortment of household items, Salahi also liked that Dollar General has fresh produce. “Many Dollar General locations offer a surprising selection of fresh produce and dairy products,” he said.
Being able to incorporate more fresh fruits and vegetables is a big advantage that sets Dollar General apart from its competitor.
Store Layout and Shopping Experience
When looking at what makes a good shopping experience, our experts pointed to other qualities that go beyond just selection and prices. Bakke praised Dollar General’s excellent store layout and overall shopping atmosphere as key reasons for his preference.
“The customer experience is probably the biggest reason why I prefer Dollar General over Dollar Tree,” said Bakke. “The aisles are wider, which is a huge convenience when it’s busy, and their locations have better indoor lighting, another plus. The cleanliness and organization levels at Dollar General top those of Dollar Tree, which in my opinion is helpful as well. Granted, this is only my personal experience at the locations in my locale, so take my advice with those caveats in mind.”
Dollar General stores are very well-organized and easy to navigate. The aisles are spacious, which allows shoppers to move through the store smoothly. The signs are also very clear, so people can quickly find what they need.
The fast checkout process at Dollar General is another aspect that earned praise. Customers are able to get through the registers quickly and efficiently. This focus on making the checkout convenient is an important part of the overall Dollar General shopping experience.
It all adds up to create a shopping trip that is genuinely enjoyable and easy for budget-conscious customers. This well-designed layout not only saves customers time, but also helps create a more pleasant, stress-free shopping trip. The combination of choice and efficiency is a big part of why Dollar General has become such a go-to destination for cost-minded shoppers — and our frugal shopping experts.
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One of the primary draws of Dollar General for shopping experts is the store's big product selection. While Dollar Tree is limited to items that literally cost just $1.25, Dollar General offers a much wider range of price points, with a lot of name-brand goods available right alongside the typical dollar store
dollar store
A variety store (also five and dime (historic), pound shop, or dollar store) is a retail store that sells general merchandise, such as apparel, auto parts, dry goods, toys, hardware, furniture, and a selection of groceries.
While Dollar Tree sells every item for just $1.25, the quality of these products might not be the best. Some of the products may not last for long, and you might have to replace them quickly. On the other hand, Dollar General sells products that cost more, but you can expect the quality to be higher.
Dollar General is even pricier than its counterparts, with only a handful of items at $1 and most prices from $3 to $10, but it carries more name brands and a greater selection, Ramhold says. These stores can sell products at a lower price because the items are custom-made in smaller sizes.
Should you be buying Dollar Tree stock or one of its competitors? The main competitors of Dollar Tree include Dollar General (DG), BJ's Wholesale Club (BJ), Ollie's Bargain Outlet (OLLI), PriceSmart (PSMT), Big Lots (BIG), Target (TGT), Five Below (FIVE), MINISO Group (MNSO), eBay (EBAY), and Tractor Supply (TSCO).
The main competitors of Dollar General include Dollar Tree (DLTR), Target (TGT), Five Below (FIVE), Tractor Supply (TSCO), eBay (EBAY), Fastenal (FAST), Restaurant Brands International (QSR), Yum! Brands (YUM), Builders FirstSource (BLDR), and Kroger (KR). These companies are all part of the "retail/wholesale" sector.
"When it comes to shopping for name brands, Dollar General has a bigger selection of everything from groceries to toys to cleaning supplies," says Ramhold. "So if you're brand-loyal, it's a good way to shop for names you recognize and trust at somewhat cheaper prices."
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.
No Walmart does not own Dollar General. They are both two separate and independent retail companies. Both trade their stock publicly. Walmart has the ticker symbol WMT.
In addition to high-quality private brands, Dollar General sells products from America's most-trusted brands such as Clorox, Procter & Gamble, Kimberly-Clark, Unilever, Kellogg's, General Mills, Nabisco, Hanes, PepsiCo and Coca-Cola. To find a Dollar General location near you, please visit our store locator here.
In some cases, that's true -- but not always. In fact, Walmart cost less than Dollar General in our price comparison. We checked prices on a basket of common goods in their online stores. Walmart was cheaper overall, and beat Dollar General in 10 out of 12 of the items in our basket.
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.
Building Across America Like No Other Retailer Can
We are changing that. Building on the success of both brands, we have created a new format bringing together two of your favorite brands — Dollar Tree and Family Dollar — under one roof.
Does Walmart own Dollar Tree? No, Dollar Tree is a publicly traded company owned by its independent shareholders. WalMart and Dollar Tree are both Fortune 500 companies and are competitors.
Dollar General Corporation is an American chain of discount stores headquartered in Goodlettsville, Tennessee. As of January 8, 2024, Dollar General operates 19,643 stores in the continental United States and Mexico. Dolgencorp, LLC.
The store aims to offer low prices on brand-name goods, with a smaller store format, and a particular focus on smaller markets with limited shopping alternatives. In its 2022 annual report, the company says its core customers are "low and fixed income households often underserved by other retailers."
Dollar General operates about 19,000 stores in the US, 2,700 of which focus on fresh groceries. DG Markets stock produce, meat, and other foods that aren't typically found in dollar stores. I visited a DG Market and found the selection limited and the prices higher than grocery stores.
Dollar Tree offers a large selection of grocery items for under $1, but usually only one type of each item — and that's often a generic label. While Dollar General and Family Dollar may have a wider variety, they both usually mark up these products with prices exceeding $1.
That may seem like a lot of money to people used to shopping at dollar stores to save money, but it's barely anything for these companies, which make billions of dollars a year. Dollar General made $11.9 billion in gross profit in 2022; Dollar Tree Inc.made $8.9 billion.
One key approach is bulk buying from suppliers. By purchasing millions of units to distribute across their numerous locations, they can acquire products at a lower cost, similar to the savings Costco offers its customers through bulk purchases. Another method dollar stores use is sourcing liquidated items.
The company's success rested on its ability to find merchandise inexpensive enough to sell at this price, turning the retail world's traditional model on its head. By adhering to this idiosyncratic business model, Dollar Tree created a niche in the market and captured the hearts of bargain-loving consumers.
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