US Dollar Stores Market Report 2024 | Mintel Store USA (2024)

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Description

Dollar stores enjoy strong penetration, with 89% of adults having shopped the channel in the last year. Importantly, more than three-quarters of dollar store shoppers understand the channel’s foundational positioning for being an inexpensive, good option for essential everyday items. Indeed, this low price strategy has served the channel well, driving shoppers to its doors as inflation led shoppers to seek out low price retailers. It’s expected the dollar store industry will continue seeing steady growth in the years ahead.

In the near term, low price strategies remain essential as the dollar store shoppers will eschew retailers who implement price increases. Yet, to continue growth momentum, the competitive retail landscape and threat of big retail suggests that channel purveyors should prioritize building shopper loyalty: 51% of category shoppers say they are not loyal to any dollar store.

At present, shopper loyalty is toward low prices and not a specific retailer. The reality is that there’s little discrepancy in traditional dollar store brand identities. There’s opportunity for players to develop a brand story that fuels allegiance and resonates with key demographic groups. Competitive strategies could include expansion of fresh, quality food and beverage offerings, upscale concepts and digital/tech advancements.

This report looks at the following areas:

  • Market factors impacting dollar stores
  • Opportunities for retailers to improve the dollar store shopping experience and build loyalty
  • Dollar store retailers shopped in the last year and overall engagement
  • Changes in shopping frequency of dollar stores in the last year
  • Frequency of dollar store visits in a given month and duration of shopping experience
  • A look into the resistant shopper: are they open to shopping the channel and what are the biggest barriers to engagement
  • Categories shopped at dollar stores
  • Types of food and beverages purchased at dollar stores
  • Shopping habits of the dollar store consumer
  • Attitudes toward dollar stores, including rationales regarding value, pricing, improvements, expectations and competitive threats

An evolving inventory of inexpensive unique items and brand names turns dollar store shoppers into treasure hunters who value low price over anything else.

Vince DiGirolamo, Director, North America Reports

Market Definitions

For the purposes of this Report, dollar stores are defined as retailers selling deeply discounted merchandise including name brand and private label products such as food, household supplies, health and beauty care and more, typically ranging in price from $1-20. Some dollar stores are known as single-price stores, offering one price for all merchandise in stores. Dollar stores include but are not limited to:

  • Dollar General
  • Dollar Tree
  • Family Dollar
  • Five Below
  • 99 Cents Only
  • popshelf

Table of Contents

  1. Executive Summary

    • What you need to know
    • Market size & forecast
    • Market predictions
    • What consumers want & why
    • Challenges & opportunities
    • Challenge: dollar store shoppers are a fickle bunch
    • Opportunity: build loyalty through quality food/beverage, upscale concepts, tech advancements
    • Strategies to encourage retailer loyalty
  2. Market Dynamics

    • Market context
    • Market drivers
    • The US expanded by 1.4% in Q1 2024
    • Graph 1: quarterly real GDP growth, 2020-24
    • Annual inflation sits at 3% as of June, the lowest it has been in over three years
    • Graph 2: headline CPI and shelter CPI, 2021-24
    • The unemployment rate slightly edged up, but job growth remains solid
    • Graph 3: unemployment rate, 2019-24
    • Consumer sentiment remains down, but is expected to rebound soon
    • Graph 4: consumer sentiment index, 2022-24
    • Nearly 40% of consumers have seen their financial situations change for the better in the past year
    • Graph 5: change in financial situation over the past 12 months, 2024
    • For over a year, many households have seen their purchasing power grow due to wage growth outpacing the rise in prices
    • Graph 6: wage growth and headline CPI, 2023-24
    • Poor economy drives financially struggling shoppers to the dollar store channel
    • Graph 7: attitudes towards dollar stores, by financial situation, 2024
    • Financially insecure consumers are shopping essential categories
    • Graph 8: items purchased at dollar stores, by financial situation, 2024
    • Younger consumers present future opportunity
    • Multicultural consumers present opportunity to drive growth
    • Market size and forecast
    • Dollar stores maintain strong momentum
    • Consumers' continued focus on value will lead to industry growth in the years ahead
    • Consumers' continued focus on value will lead to industry growth in the years ahead (cont.)
    • Market comparison
    • Dollar stores are contributing to the growth for other general merchandise stores
    • Retail sales of general merchandise stores, by segment
    • Retailer overview
    • Dollar General
    • Dollar General is a category leader with growth of 51% since 2018
    • Dollar General launches popshelf as upscale concept
    • Dollar Tree
    • Dollar Tree and Family Dollar push past $30 billion in sales
    • Family Dollar struggles prompting a shift toward combo store formats
    • Graph 9: Family Dollar shopper, by key demographics, 2024
    • Five Below finds niche as specialty retailer within the channel
    • Graph 10: Five Below shopper, by key demographics, 2024
  3. Consumer Insights

    • Consumer fast facts
    • Consumer fast facts (cont.)
    • The dollar store consumer
    • Dollar stores have widespread reach
    • A solid constituent of dollar store shoppers are shopping more often
    • Graph 11: dollar store shopping frequency compared to last year, 2024
    • Targeting younger adults, particularly parents, is important to advancing channel sales
    • Graph 12: dollar store shopping frequency compared to last year, by parental status, 2024
    • Graph 13: dollar store shopping frequency compared to last year, by generation, 2024
    • Majority of dollar store shoppers visit several times per month
    • Graph 14: dollar store monthly shopping frequency, 2024
    • Gen Z and parents have a weekly dollar store habit
    • Graph 15: dollar store monthly shopping frequency, by generation, 2024
    • Graph 16: dollar store monthly shopping frequency, by parental status, 2024
    • Dollar store shopping tends to be a short experience
    • Graph 17: average time spent shopping at dollar stores, 2024
    • The resistant consumer
    • Continuing to attract new users will help advance channel sales
    • Graph 18: openness to shopping dollar stores, 2024
    • Opportunity to attract non-shoppers with expanded grocery and improved quality
    • Graph 19: reasons for not shopping at dollar stores, 2024
    • Retailers shopped
    • Dollar Tree attracts largest share of channel shoppers
    • Graph 20: dollar stores shopped in past 12 months, 2024
    • The dollar store channel attracts younger generations
    • Graph 21: dollar stores shopped in past 12 months, by generation, NET – any dollar store, 2024
    • Five Below is a favorite among Gen Z and younger Millennials
    • Graph 22: dollar stores shopped in past 12 months, by generation, 2024
    • Black and Hispanic consumers gravitate to dollar stores
    • Graph 23: dollar stores shopped in past 12 months, by race and Hispanic origin, NET – any dollar store, 2024
    • Black and Hispanic consumers significantly overindex shopping leading dollar store chains
    • Graph 24: dollar stores shopped in past 12 months, by race and Hispanic origin, 2024
    • A variety of dollar store retailers appeal to parents
    • Graph 25: dollar stores shopped in past 12 months, by parental status, 2024
    • Categories purchased
    • Shoppers seek out consumable products at dollar stores rather than products that require some longevity
    • Graph 26: items purchased at dollar stores, 2024
    • Women shop seasonal, party, and crafts; men more likely to buy electronics
    • Graph 27: items purchased at dollar stores, by gender, 2024
    • Clothing and electronics are popular categories with Gen Z
    • Graph 28: items purchased at dollar stores, by generation, 2024
    • Black consumers focus on perishables and BPC items
    • Graph 29: items purchased at dollar stores, by race and Hispanic origin, 2024
    • Parents are most likely to shop categories beyond essentials
    • Graph 30: items purchased at dollar stores, by parental status, 2024
    • Food and beverage purchases
    • Dollar store shoppers buy food products
    • Graph 31: food/beverage items purchased at dollar stores, NET – any items, 2024
    • Food & beverage purchases suggest impulse buys; snacks dominate food category purchases
    • Graph 32: food/beverage items purchased at dollar stores, 2024
    • Highly engaged dollar store shoppers buy more grocery items
    • Gen Zs significantly more likely than the average dollar store shopper to buy alcohol, frozen foods and produce
    • Graph 33: food/beverage items purchased at dollar stores, by generation, 2024
    • Fresh foods, like dairy and produce, have high appeal to parents
    • Graph 34: food/beverage items purchased at dollar stores, by parental status, 2024
    • Black consumers shop dollar store food categories as a necessary resource
    • Graph 35: food/beverage items purchased at dollar stores, by race, 2024
    • Shopping habits
    • The threat of big retail
    • Graph 36: attitudes toward dollar stores – competitor options, 2024
    • Upscale dollar stores provide opportunity
    • Graph 37: attitudes toward dollar stores – upscale concepts, by Hispanic origin; parental status, 2024
    • Browsing aisles and buying too much are common habits
    • Graph 38: dollar store shopping behaviors, 2024
    • Boomers browse the store
    • Graph 39: dollar store shopping behaviors, by generation, 2024
    • Few dollar store shoppers shop online, use apps or coupons
    • Graph 40: dollar store shopping behaviors – digital/coupon behaviors, 2024
    • Gen Z most likely to engage with dollar store apps and online shopping
    • Graph 41: dollar store shopping behaviors – digital/coupon behaviors, by generation, 2024
    • Attitudes toward dollar stores
    • Most shoppers understand the channel's value positioning
    • Graph 42: attitudes toward dollar stores – shopping experience, 2024
    • Parents enjoy the thrill of the hunt
    • Graph 43: attitudes toward dollar stores – shopping experience, by parental status, 2024
    • Maintaining low price/value strategy is essential
    • Graph 44: attitudes toward dollar stores – impact of prices, 2024
    • Inflation has driven younger adults and parents to shop dollar stores more often
    • Graph 45: attitudes toward dollar stores – impact of prices, by parental status, 2024
    • Graph 46: attitudes toward dollar stores – impact of prices, by generation, 2024
    • Dollar store expectations and improvements
    • Graph 47: attitudes toward dollar stores – product offerings, 2024
    • Highly engaged demographics more likely to note improvements, but have higher expectations
    • Graph 48: attitudes toward dollar stores – product offerings, by generation, 2024
    • Graph 49: attitudes toward dollar stores – product offerings, by parental status, 2024
    • Improve penetration among men by leveraging name brands and digital features
    • Graph 50: attitudes toward dollar stores – product offerings, by gender, 2024
    • Black shoppers see channel improvements
    • Graph 51: attitudes toward dollar stores – product offerings, by race and Hispanic origin, 2024
    • Challenges for the dollar store channel
    • Graph 52: attitudes toward dollar stores – preferences; environmental impact, 2024
    • Highly engaged shoppers are among the least loyal
    • Graph 53: attitudes toward dollar stores – preferences; environmental impact, by generation, 2024
    • Graph 54: attitudes toward dollar stores – preferences; environmental impact, by parental status, 2024
  4. Innovation and Marketing strategies

    • Competitive strategies
    • Strong pipeline of promotional activity, supported by digital efforts
    • Dollar General ramps up promotional activity
    • Five Below taps online shoppers for early launch of back-to-school season
    • Dollar Tree upgrades digital presence for its brands
    • Pushing digital coupons via DG app
    • Connect with consumers to build loyalty
    • Dollar General leverages celebrity partnership
    • NASCAR brings visibility to Dollar Tree and Family Dollar brands
    • Five Below creates a unique shopping experience with in-person event
    • Innovative retailers create space for upscale concepts
    • Five Below targets young adults with inexpensive decor
    • popshelf focuses on eclectic, trendy merchandise
  5. Appendix

    • Market definition
    • Forecast methodology
    • Forecast fan chart methodology
    • Consumer research methodology
    • Consumer research questions
    • Generations
    • Abbreviations and terms

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US Dollar Stores Market Report 2024 | Mintel Store USA (2)

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FAQs

What are the 3 biggest dollar store chains in America? ›

Three national chains dominate the dollar store retail environment: Dollar General, Dollar Tree, and Family Dollar. Combined they had over 24,000 stores as of October 2018. You can see in the map that these stores are most heavily concentrated in the Southeast United States.

How many Dollar General market stores are there in the US? ›

How many Dollar General stores are there in the United States? As of June, 2024, there are 18912 Dollar General stores in the United States. These stores are located in 48 states and territories and 8008 cities. The state with the most Dollar General locations is Texas, with 1947 stores.

How big is the dollar store industry? ›

The dollar store industry has experienced growth over the last five years, as operators adopt new strategies to sustain growth. Total dollar store industry revenue is forecast to increase an annualized 1.6% over the next five years, reaching $109.7 billion.

Why are dollar stores growing? ›

Retail competition in rural communities is often weak, “so dollar stores have a very captive market and are often a very convenient option for consumers who would otherwise have to drive further afield for everyday essentials.

Which dollar store is the most profitable? ›

Two companies dominating the U.S. dollar store market

In 2021, Dollar General's net sales amounted to more than 34 billion U.S. dollars, while Dollar Tree generated revenues of over 26 billion U.S. dollars that year, although Dollar Tree's figure incorporates sales made in Canada as well.

Does Walmart own dollar? ›

No Walmart does not own Dollar General.

Who is bigger, Walmart or Dollar General? ›

Walmart stores are far bigger, but there are fewer of them. There are far more Dollar General stores, but they're much smaller. Both companies sell the same basic consumer goods, though, even if Walmart offers more bigger-ticket items.

What is the new name for Dollar General? ›

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.

Does China own Dollar General? ›

Dollar General is not owned by China. However, the company buys a large portion of its merchandise from China. Its competitor Dollar Tree also buys a large portion of its goods from China. That's not surprising, as China is the largest supplier of low-cost goods that companies like Dollar General sell.

Is the dollar store doing well? ›

Dollar General's net sales for its most recent quarter increased 6.1% year over year to $9.9 billion. Discount stores are now the fastest-growing food retailers in the nation, according to January 2023 research from the American Journal of Public Health.

Who owns dollar stores? ›

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.

What is the largest dollar store brand? ›

Key Data Points. Dollar General is the largest dollar store operator both in terms of annual sales (more than $34 billion in 2021) and total store count (some 18,000 locations in 46 states).

Which state has the most Dollar General stores? ›

How many Dollar General stores are there in the United States? There are 20,155 Dollar General stores in the United States as of August 27, 2024. The state and territory with the most number of Dollar General locations in the US is Texas, with 1,866 stores, which is about 9% of all Dollar General stores in the US.

Who is Dollar General's biggest competitor? ›

Dollar General's competitors and similar companies include Walgreens, Walmart, Family Dollar Stores, Dollar Tree and Target.

Who are the top 5 retailers? ›

Ranked: The Top 20 Global Retailers
RankingRetailerShare of Domestic Retail Revenue
1Walmart84.7%
2Amazon.com70.4%
3Costco75.0%
4Schwarz Group32.0%
16 more rows
Jun 19, 2024

Which dollar store has the most locations? ›

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.

Are Dollar Tree, Dollar General, and Family Dollar the same company? ›

Dollar Tree, which focuses more on middle-income shoppers in suburbs, bought Family Dollar in 2015 for $8.5 billion. The combined company hoped that by joining forces, it could grow its customer base, reduce costs and fend off bigger retailers like Dollar General, which is mainly in rural areas.

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