Dollar Stores

Dollar stores often place staple items at the back of the store

This forces customers to encounter other, less-necessary items on their way there, leading to impulse buys. This video explains other ways that dollar stores make money while selling extremely cheap products, keeping dollar store profit margins relatively high.

11,000 new US dollar stores opened between 2007 and 2017

Dollar store retailers experienced significant fiscal gains during the 2010s, which were then accelerated by the COVID-19 pandemic. But in recent years, dollar stores have been closing in large numbers and suffering financial hardship. Experts point to Walmart's strategy of decreasing prices to cater to inflation-fatigued customers, and point out that when Walmart does well financially, dollar stores typically suffer.

Family Dollar and Dollar Tree merged in 2015 before splitting in 2025

Dollar Tree completed its acquisition of Family Dollar for about $9B in 2015. However, in 2025, Dollar Tree sold Family Dollar to private equity firms Brigade Capital Management and Macellum Capital Management for just over $1B after Family Dollar lagged in performance.

In 1955, the first Dollar General store was opened in Kentucky

It was created by a father and son, Cal Turner Sr. and JL Turner. At the time, no item in the store cost more than one dollar, although that has since changed.

Dollar General vs Dollar Tree vs Family Dollar: What's the difference?

A recent article claims that at Dollar Tree, almost all of the items are $1.25, although inventory seems more limited. At Family Dollar and Dollar General, prices tend to be slightly higher, though they often carry name brands.

The products sold at dollar stores tend to be smaller in size

Recent reports suggest that dollar stores regularly practice 'shrinkflation,' the practice of making products smaller while keeping the price the same or even raising it.

Dollar stores tend to be smaller in size than other retail stores

A typical Dollar Tree is roughly 8,000 to 12,000 square feet. That's about one-eighteenth of the average Walmart store. Some experts suggest Dollar Tree keeps its stores smaller intentionally, so that customers can see all the products faster, increasing their likelihood of seeing something they want to buy.

Dollar Tree was increasingly targeting higher-income shoppers in 2026

Dollar Tree stores have been opening in wealthier areas in recent months, with its 9,000th store opening in 2025 within a few miles of a Louis Vuitton store and a Porsche dealership. A recent survey found that 19% of the money spent at dollar stores came from households with annual income exceeding $100,000.

The best items to buy at dollar stores, according to a financial expert

Experts advise purchasing items like greeting cards, pregnancy tests, candy, gift and party supplies, and other items from the dollar store to maximize savings.

The worst things to buy at the dollar store, according to a financial expert

Some dollar store products can be low quality, and experts advise not purchasing them. This list includes 17 products to avoid at dollar stores, including batteries, toys, costumes, and more.