Dollar Tree Rubs Its Hands: Its Rival Closes Many Stores in the United States

Dollar Tree and Dollar General have been direct competitors for years, dominating the discount store sector in the United States. Both have grown rapidly by offering affordable and accessible products to millions of people.

However, the retail industry is facing difficulties, and now one of these giants, Dollar General, has announced that it will close around 100 stores across the country. This decision has caused much speculation about the future of discount stores in an increasingly competitive market.

Dollar General's Situation

Despite being the leader in numbers, Dollar General is not exempt from challenges. By the end of 2024, the chain had 20,583 stores across the United States. Its closest competitor, Dollar Tree, has 16,440 stores.

The closure of 100 of these doesn't represent a large part of its total. However, it is a reflection of the difficulties the company faces in a complicated economic environment.

Market Adaptation Strategies

Although it is closing, Dollar General is not giving up. The company is implementing a new same-day delivery service in select markets. This "soft launch" aims to improve competitiveness against e-commerce giants like Amazon and Walmart. If this service is successful, Dollar General plans to expand it to thousands of stores across the country.

Price Increases at Dollar Tree

Meanwhile, Dollar Tree is also facing its own challenges. Inflation has forced the chain to increase the prices of several products. Since the end of 2024, the price of many items has risen from $1.25 to $1.50.

Additionally, the Dollar Tree Plus lines have also increased, with some products going from $5 to $7. These increases, although modest, can have a significant impact on the perception of customers seeking low prices.

Growing Competition from E-Commerce

According to CNBC reports, spaces like Dollar General and Dollar Tree are struggling against the growing competition from retailers with a strong online presence, such as Walmart. The preference for online shopping has increased, and physical discount stores are trying to adapt to this new reality.

Dollar General has launched its same-day delivery service. It remains to be seen if this measure will be enough to compete with the appeal of e-commerce.

The Future of Physical Stores

The competition between Dollar General and Dollar Tree is far from being an isolated phenomenon. In general, physical stores are having to adapt to a market that increasingly leans toward online shopping.

Discount establishments are trying to remain competitive. Even so, the true test of their success will depend on how they respond to changes in consumer expectations and the economic pressures affecting the sector.

This is just the beginning of what could be a deeper restructuring of the retail industry in the coming years. Discount brands, like Dollar General and Dollar Tree, will have to continue evolving to remain relevant in a rapidly changing market.