The 11 Biggest Dollar General Competitors in 2024
With over 18,400 stores in 47 states, Dollar General is far and away the leader in extreme value retail. But in the competitive discount space, rivals are constantly looking to grab market share.
I analyzed 11 of Dollar General‘s biggest competitors to understand the threats and opportunities in this $64 billion industry. Here is an in-depth look at who‘s competing for the dollars of Dollar General‘s core customers.
1. Dollar Tree
Dollar Tree is by far Dollar General‘s closest competitor with over 16,000 stores nationwide. Everything under the Dollar Tree banner is $1 – a simple value proposition that customers love.
Key Stats on Dollar Tree:
- 16,077 US store locations
- $25.5 billion revenue in 2021
- Same-store sales grew 1.6% in 2021
Dollar Tree has struggled with financial performance recently, with net losses of $404.3 million in 2021 due to global supply chain issues. But it remains a formidable competitor, especially if it can turn performance around in 2024.
2. Family Dollar
Owned by Dollar Tree since 2015, Family Dollar has over 8,000 stores in rural and lower-income urban areas. Family Dollar targets similar demographics to Dollar General but offers more well-known national brands.
Key Stats on Family Dollar:
- 8,000+ US store locations
- $11.2 billion revenue in 2021
- Same-store sales declined 6.8% in 2021
Family Dollar has faced shrinking same-store sales and several store closures. But it still pulls in billions in revenue and provides close competition for Dollar General in small towns and city neighborhoods.
Dollar General vs. Dollar Tree and Family Dollar
| Metric | Dollar General | Dollar Tree | Family Dollar |
|---|---|---|---|
| 2021 US Revenue | $34.2 billion | $25.5 billion | $11.2 billion |
| 2021 Store Count | 18,400+ | 16,077 | 8,000+ |
| Merchandise Mix | Wide assortment across categories | Most at $1 or less | More national brands |
3. Walmart
The retail juggernaut Walmart is expanding its value focus to take on dollar stores, opening dozens of its new Walmart Neighborhood Market stores with convenience and rock-bottom prices.
Key Stats on Walmart:
- Over 5,300 Walmart Neighborhood Market locations
- $572 billion total company revenue in 2021
- Opened 130 new Neighborhood Markets in 2021
Walmart‘s Neighborhood Market format is still just a fraction of its overall business. But with over 5,000 locations and growing, it represents a major threat to siphon away Dollar General shoppers.
4. Aldi
With over 2,100 US stores, the German discount grocer Aldi offers extremely low prices on private label groceries and limited general merchandise options. Aldi has rapidly expanded in recent years.
Key Stats on Aldi:
- 2,100+ US store locations
- More than doubled its US store count since 2015
- 90% of products are exclusive Aldi brands
Aldi‘s barebones shopping experience isn‘t for everyone. But for the most price-sensitive grocery shoppers, Aldi likely takes a portion of that business from Dollar General.
5. Costco
With an annual membership fee, warehouse club Costco caters to higher-income households compared to Dollar General‘s core customer base. But it still provides extreme value prices that rival dollar stores.
Key Stats on Costco:
- 572 US warehouse locations
- $192 billion global revenue in 2021
- 58.7 million paid members as of Q1 2022
Costco‘s massive $192 billion business shows it succeeds at delivering bulk-sized bargains. Its shoppers likely have less overlap with Dollar General than competitors like Aldi or Family Dollar.
6. 99 Cents Only Stores
True to its name, this 300+ store dollar chain sells all products at 99 cents or less, competing directly with Dollar General on extreme value. But 99 Cents Only Stores are concentrated in California, Texas, Arizona, and Nevada.
Key Stats on 99 Cents Only Stores:
- Over 300 store locations
- 87% of sales from California in 2021
- $1.8 billion estimated revenue in 2021
Regional player 99 Cents Only punches above its weight class but doesn‘t have the national presence to take significant share from Dollar General.
7. Five Below
This quickly growing chain targeting teens and pre-teens has over 1,200 locations stocked with trendy items up to $5. The mix of toys, tech, candy, accessories, and home goods caters perfectly to young shoppers.
Key Stats on Five Below:
- 1,200+ store locations
- $2.85 billion revenue in 2021
- Opened 170 new stores in 2021
Five Below competes for a different demographic than Dollar General. But its surging growth in discount retail still represents a minor threat as it takes market share from other players.
8. Ollie‘s Bargain Outlet
With over 450 stores in 29 states, Ollie‘s sells deeply discounted brand name merchandise in an eclectic warehouse format. The fast-changing inventory provides a "treasure hunt" feel for bargain hunters.
Key Stats on Ollie‘s Bargain Outlet:
- 450+ store locations
- $1.8 billion revenue in 2021
- Opened 62 new stores in 2021
Ollie‘s regional footprint limits its competition with Dollar General, but it still attracts some overlapping value-focused shoppers hunting for the best deals.
9. Big Lots
Big Lots has over 1,400 stores stocked with closeout merchandise, furniture, food, and seasonal items priced 20-50% lower than other retailers. Big Lots pulls in over $6 billion annually serving bargain shoppers.
Key Stats on Big Lots:
- 1,400+ store locations
- $6.15 billion revenue in 2021
- Same-store sales grew 0.1% in 2021
Big Lots‘ assortment overlaps with Dollar General in certain categories like home goods. Some analysts think Big Lots is better positioned than Dollar General for inflationary times when shoppers trade down.
10. Fred‘s
Fred‘s was once Dollar General‘s most formidable regional rival, but it filed for bankruptcy and closed all remaining 600 stores in 2019. Fred‘s demise illustrates the incredible difficulty competitors have in challenging Dollar General.
What Happened to Fred‘s:
- Grew to 600 stores across 15 states
- Struggled to compete as dollar stores expanded
- Lost Walgreens as key pharmacy partner
- Went bankrupt and liquidated in 2019
Fred‘s failure shows just how dominant Dollar General is. The brand loyalty and economies of scale make it nearly impossible for new entrants to replicate Dollar General‘s winning formula.
Key Takeaways on Dollar General‘s Competition
- The only two true nationwide competitors are fellow dollar stores Dollar Tree and Family Dollar.
- Discounters like Walmart, Aldi, and Costco compete for value shoppers in specific categories.
- Regional chains like Fred‘s lack the scale to seriously threaten Dollar General‘s dominance.
- Dollar General‘s biggest defense is the loyalty of its core rural shoppers.
- With smart real estate selection and omni-channel initiatives, Dollar General is poised for continued growth and success in 2024 despite fierce competition.
