From Nasdaq: 2025-05-10 10:06:00

Dollar Tree and Dollar General may both be discount stores, but they operate differently. Dollar General dominates with 20,594 stores and $40.6 billion in sales, while Dollar Tree is shedding its Family Dollar arm to focus on its $17.6 billion business. Dollar General thrives in rural areas, while Dollar Tree appeals more to urban shoppers.

Dollar General’s focus on consumables poses a challenge in times of high inflation. On the other hand, Dollar Tree’s emphasis on discretionary goods gives it an edge during economic downturns. Dollar General’s same-store sales growth is stagnant, while Dollar Tree continues to outperform, benefiting from its unique positioning in the market.

As the economy improves, Dollar General’s consumables-heavy business model could thrive, while Dollar Tree’s urban focus and diverse product mix provide stability. Dollar Tree’s underperformance could be attributed to its Family Dollar troubles and vulnerability to tariffs, making it a riskier investment compared to Dollar General in uncertain economic times.



Read more at Nasdaq: Dollar General and Dollar Tree Are Both Dollar Stores, but They’re Actually Very Different. Here’s What That Means for Investors.