Dollar General vs. Dollar Tree: Which One Takes the Crown?

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

Not sure which discount store to shop at? Here’s a comparison between the two main competitors in the industry to help you decide. 

When it comes to finding the best deals and bargains, we all love to shop at dollar stores, right? Among all the dollar stores, the two largest players are Dollar General and Dollar Tree, which purchased Family Dollar in 2015. While both of these stores may look similar, there are still some differences between the two.

Growth of the chain dollar store

Dollar stores have gained popularity as a cost-effective option for shopping. In fact, 9 out of 10 Americans shop at dollar stores, and low prices are the No. 1 reason. In 2021, nearly half of all newly opened stores in the U.S. were chain dollar stores.

With over 35,000 locations, dollar stores outnumber the combined total of McDonald’s, Starbucks, Target, and Walmart. The proliferation of dollar stores can be attributed to their extensive product offerings at highly competitive prices.

Product quality

One of the major differences between Dollar General and Dollar Tree is the quality of their products. 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. So, if you are looking for better quality products that might last longer, Dollar General is the way to go.

Pricing

There’s no doubt that both of these stores offer affordable prices, but if you’re looking for more low-cost options, then Dollar Tree is the way to go. While Dollar General sells products ranging from $3 to $10, Dollar Tree sells everything for just $1.25. That means you can get more products at Dollar Tree with your allotted budget.

For 35 years, everything was $1 at Dollar Tree. But in November 2021, Dollar Tree announced that all of its merchandise would be raised to $1.25 — inflation strikes again. Even though it was a 25% increase, prices are still lower than many other competitors.

That being said, you can still find some great deals at Dollar General, which has become more of a discount retailer. Even with more brand-name products being introduced at Dollar General, the company advertises that over 2,000 items are still available for $1 or less. Dollar General also offers an app that offers significant discounts and savings every week.

When it comes to shopping, it’s easy to get excited when you see a low price tag. But just because something is cheap doesn’t necessarily mean it’s a good deal. Dollar stores are notorious for offering lower prices, but you may notice that many of their products are smaller in size.

The trick to figuring out if you’re truly getting a good deal is to compare the price per unit. This will help you compare apples to apples and avoid getting duped by a seemingly low price. You should take into account quality, even if that means paying a bit more in the long run.

Product variety

If you’re looking for a wider variety of products, then Dollar General is the store for you. It has a vast selection of products ranging from groceries and cleaning supplies, to electronics, clothing, and beauty products.

Additionally, it sells branded products from various well-known manufacturers. Dollar General offers high-quality private brands as well as trusted products from leading American brands including Clorox, Procter & Gamble, Kimberly-Clark, Unilever, Kellogg’s, General Mills, Nabisco, Hanes, PepsiCo, and Coca-Cola.

On the other hand, Dollar Tree sells products solely for $1.25, which limits its selection of products. However, with the recent price increase, Dollar Tree has reintroduced items that were constrained by the $1 price point. It added many name brands to the mix and began to “materially expand its offerings, introduce new products and sizes, and provide families with more of their daily essentials.”

Store locations and layout

Dollar General is the largest dollar store with over 19,000 locations, more than double the number of the 8,000 Dollar Tree stores. In 2015, Dollar Tree bought Family Dollar, bringing the total number of locations to 16,000.

When it comes to the store layout, each Dollar General store is about 7,400 square feet compared to 8,000 to 12,000 square feet for a Dollar Tree store.

Dollar General stores have wider aisles, which makes shopping more comfortable, and they are bright and inviting. On the other hand, Dollar Tree stores are more bare bones. There is a noticeable difference between the two, with Dollar General stores outpacing Dollar Tree when it comes to shopping experience and quality of products.

Which one is better?

The biggest perk of shopping at Dollar Tree is that you never have to question the price of anything you pick up. Everything is $1.25. However, while the prices are still incredibly affordable, the quality and availability of some items are not as high as Dollar General.

Dollar General is particularly known for its wider selection of brand and non-brand name products. One downside of shopping at Dollar General is that its prices can vary, making it a less predictable budget shopping destination.

When selecting a dollar store for shopping, there is no one-size fits all answer. Every chain has its advantages and disadvantages. The product assortment varies across stores depending on the season, location, and availability. When deciding which store to shop at, consider your individual preferences and needs. Do you prioritize variety over quality? Are you looking for specific seasonal products or staples that are always available? Taking the time to weigh your options can help you find the perfect dollar store for your shopping needs.

Both Dollar General and Dollar Tree offer convenience and value for your money. So which one takes the crown? There’s no easy answer to this. It ultimately depends on what you’re looking for. If you’re on a tight budget and want everything to cost just $1.25, then go for Dollar Tree. But if you’re looking for a wider selection of quality products and can spend a little more, then choose Dollar General. In any case, both stores give great value and convenience, and the choice comes down to personal preference.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More