Dollar Tree has made a name for itself as one of America‘s largest and most popular extreme value retailers, with over 15,500 stores across the U.S. and Canada selling products for just $1. However, Dollar Tree faces stiff competition from a range of other value-oriented retailers looking to attract budget-conscious shoppers. In this comprehensive guide, we‘ll take a deep dive into 15 of Dollar Tree‘s biggest competitors, from direct rivals like Dollar General to wholesale clubs, online sellers, and more.
Our competitor analysis will arm you with all the key information you need to understand the competitive landscape, including each company‘s history, store count, annual sales, target customer, and unique selling proposition. We‘ll also highlight how these rivals stack up against Dollar Tree and the potential threats they pose. By the end, you‘ll be equipped to decide which of these value retailers is the best fit for your budget and shopping needs.
The Big Three: Dollar General, Family Dollar, and 99 Cents Only Stores
When it comes to head-to-head competition, Dollar Tree‘s biggest rivals are the other major dollar store chains: Dollar General, Family Dollar, and 99 Cents Only Stores. Here‘s how they compare:
1. Dollar General
With over 17,000 stores in 46 states, Dollar General is the largest dollar store chain in the U.S. and poses the biggest competitive threat to Dollar Tree. It offers a wider selection than Dollar Tree, including food, snacks, health and beauty products, cleaning supplies, apparel, and seasonal items at low prices (mostly under $10). Dollar General caters to low and fixed-income households and generated a whopping $33.7 billion in sales in fiscal 2021, a 4.6% increase over 2020.
Dollar General is expanding rapidly, with plans to open 1,050 new stores in 2022. It has also launched two new store formats: DGX aimed at younger urban shoppers and Popshelf focused on low-priced home goods. These initiatives make Dollar General an even stronger player.
2. Family Dollar
Despite being owned by Dollar Tree since 2015, Family Dollar still operates as a separate retail brand with over 7,800 stores in 48 states. Like Dollar General, it offers a broader product assortment compared to Dollar Tree, including food, household products, apparel and beauty items at slightly higher price points (many in the $1-$10 range).
Family Dollar targets a similar low-income demographic with a "neighborhood discount store" model emphasizing convenience and value. Its annual revenue topped $12.3 billion in 2021. Since the acquisition, many Family Dollar stores have added Dollar Tree merchandise sections, posing internal competition.
3. 99 Cents Only Stores
Founded in 1982, 99 Cents Only Stores is a smaller dollar store chain with around 350 locations across California, Texas, Arizona and Nevada. As its name suggests, the majority of items are priced at 99 cents, similar to Dollar Tree‘s model. The product mix includes food and grocery, health and beauty, seasonal items, home products and kitchen supplies.
The company has struggled financially in recent years, filing for Chapter 11 bankruptcy in 2021, but still generates around $2.3 billion in annual sales. While a smaller player overall, it remains a formidable regional competitor to Dollar Tree in the southwestern U.S.
Retail Giants: Walmart, Target, and Costco
While not dollar stores per se, some of the nation‘s biggest retailers also compete with Dollar Tree by offering competitive prices and serving budget-minded shoppers:
4. Walmart
As the world‘s largest retailer, Walmart is a major threat to Dollar Tree simply due to its massive scale and "everyday low prices." It operates over 10,500 stores worldwide under 46 banners, including 4,700 Walmart stores in the U.S.
Walmart stores offer an enormous selection of low-priced food, household essentials, apparel, electronics, and more. It appeals to a broad swath of budget-conscious families. Walmart is also Dollar Tree‘s biggest competitor in terms of sales, with annual revenue exceeding $559 billion in 2021.
5. Target
Target operates more than 1,900 stores throughout the U.S. and is known for its trendy, affordable offerings across household essentials, apparel, beauty, home goods, electronics, toys, grocery and more. While its prices are generally higher than dollar stores, Target caters to budget shoppers with frequent discounts, clearance deals and designer collaborations. It also competes on convenience with many stores in urban areas.
Target generated annual revenue of over $106 billion in 2021, a 19.8% year-over-year increase driven by strong ecommerce growth. Target‘s loyal fanbase and beloved private label brands pose a growing competitive threat.
6. Costco
Costco is the largest wholesale club in the U.S., with over 550 stores nationwide. It offers bulk-sized products across grocery, electronics, apparel, home goods, health, pharmacy and more at discounted members-only prices. Though it charges an annual membership fee, its excellent value appeals to budget shoppers, including businesses and larger families.
Costco generated over $192 billion in sales in fiscal 2021, a 17.7% increase that proves its growing popularity. While a different format, Costco competes for the same budget-conscious customers as Dollar Tree.
Other Value Retailers: Big Lots, Five Below, Ollie‘s Bargain Outlet
Beyond the main competitors, several other discount retailers compete for bargain hunters‘ dollars:
7. Big Lots
Big Lots is a closeout retailer with over 1,400 stores in 47 states offering an ever-changing assortment of discounted home goods, toys, seasonal, grocery, furniture, electronics, apparel and more. It provides a "treasure hunt" experience as customers search for deals, appealing to budget shoppers.
Big Lots reported $6.2 billion in sales for fiscal 2021, an 8.1% increase over 2020. It competes with Dollar Tree with many overlapping products at affordable prices.
8. Five Below
Five Below is a specialty discount retailer focused on teen and tween customers, with over 1,200 stores in 40 states. It sells trend-right products priced at $5 or below across style, room, sports, tech, crafts, party, candy and seasonal categories. Five Below differentiates by offering a fun, youthful shopping experience and is rapidly expanding.
Five Below reported sales of $2.8 billion in 2021, a 45% increase over 2020. Its unique, curated assortment for young shoppers makes it competitive in key categories.
9. Ollie‘s Bargain Outlet
Ollie‘s Bargain Outlet is a discount retail chain with over 430 stores in 29 states, primarily located in the eastern U.S. It offers closeout merchandise and excess inventory across categories like housewares, food, books, toys, health and beauty aids and electronics at heavily discounted prices (up to 70% off). Ollie‘s is known for its quirky personality and loyal customer base.
Ollie‘s generated over $1.75 billion in revenue in fiscal 2021. It provides another outlet for frugal shoppers to find deals, especially on brand-name goods.
Pharmacy Value Players: CVS, Walgreens, Rite Aid
The nation‘s biggest pharmacy chains also compete with Dollar Tree in certain core categories like household essentials, beauty, and snacks. Many have added "mini-mart" sections with grocery items, and most now offer competitive generic drug prices. Here‘s how they stack up:
10. CVS
CVS Health operates over 9,900 retail locations, including pharmacies and general merchandise stores. It offers a wide selection of health, beauty, household, and convenience products, often at value prices. CVS is a major player in the drugstore space, with significant overlap with Dollar Tree.
For fiscal 2021, CVS Health reported revenue of over $292.1 billion, a 8.7% increase compared to 2020. Its scale and convenient locations make it a fierce competitor.
11. Walgreens
Walgreens operates nearly 9,000 drugstores across the U.S., offering pharmacy services alongside a product assortment that includes household essentials, health and wellness items, beauty and personal care, and food and beverage. It caters to a similar convenience-seeking customer as Dollar Tree.
In fiscal 2021, Walgreens‘ annual sales were over $132.5 billion. It has rolled out several new store formats in recent years, including bigger beauty sections to attract younger shoppers.
12. Rite Aid
Rite Aid is the third-largest drugstore chain the U.S. with over 2,400 stores in 17 states. In addition to its pharmacy, Rite Aid sells a range of low-priced household items, health products, beauty, personal care, food, and beverages. It attracts budget-conscious consumers looking for quick shopping trips.
For fiscal 2021, Rite Aid had annual revenue of $24.0 billion. Though smaller than its main rivals, it still fights for Dollar Tree‘s core lower-income customers.
Digital Dollars: Online Dollar Store Competitors
While most dollar store shopping still happens in brick-and-mortar stores, the rise of e-commerce has created new digital competitors for Dollar Tree:
13. DollarStore.com
Founded in 2001, DollarStore.com is the leading online dollar store, offering over 60,000 products across categories like household supplies, beauty, health, food, toys, and seasonal goods, with 99% of items priced at $5 or less. The site attracts budget shoppers looking for dollar store prices without leaving home, though shipping costs can add up.
According to Similarweb, DollarTree.com gets around 2 million monthly visits, proving its popularity as an online dollar store alternative.
14. Amazon Basic Elements
Though Amazon‘s prices can vary widely, its private label Basic Elements store offers a wide selection of affordable everyday essentials across household, grocery, health and beauty, office, and pet products—many with a $1 price point. Basic Elements is popular with price-conscious Amazon shoppers looking for low-cost basics.
While Amazon doesn‘t break out sales for this store, the sheer fact that the world‘s largest e-commerce player has entered the dollar store space online makes it a looming threat to Dollar Tree.
15. Wish
Wish is a digital shopping platform that offers heavily discounted goods across a wide range of categories, particularly apparel, home goods, accessories, gadgets, and electronics. It‘s popular with extremely budget-conscious global shoppers, with hundreds of millions of users. Though most items are unbranded, its rock-bottom prices on a huge selection make it competitive with dollar stores.
Wish generated $2.4 billion in annual revenue in 2021, a 17% decrease from 2020. Despite a recent slowdown, don‘t count Wish out as a growing digital rival with a devoted base of bargain hunters.
The Bottom Line
As this in-depth analysis shows, Dollar Tree faces no shortage of competitive threats from every corner of the retail industry, fighting for the dollars of budget shoppers. From expanding rivals like Dollar General to the razor-thin margins of retail behemoths like Walmart to the rising challenge from online players, Dollar Tree must continue to differentiate through its simplicity, convenience, and commitment to maintaining its $1 prices.
Ultimately, budget-minded consumers have a wider range of choices than ever when it comes to getting more for their money, both in-store and online. Where you choose to shop depends on your specific needs and preferences. If you prioritize the absolute lowest prices on the widest selection of items, Dollar Tree is still tough to beat. If you‘re looking for slightly better quality or more variety and are willing to spend a bit more, competitors like Dollar General or Target may be a better fit. And if you‘re seeking the ultimate bargains from the comfort of home, sites like DollarStore.com are worth a look.
No matter which of these stores becomes your go-to for value shopping, having this many options competing for your business is the ultimate win for frugal shoppers. So get out there and stretch your dollar at the value retailer that‘s right for you!
