Three major dollar store chains account for more than 32,000 stores - but where are they located? We investigated the current state of dollar stores in America - Dollar General, Dollar Tree, and Family Dollar-…
Discount stores are defined by their pricing model, which offers prices that are substantially lower than those of their competitors and manufacturers suggested retail prices. Unlike pricier competitors, these stores seem to be successfully expanding and have been e-commerce immune.
We took a look at the largest discount stores in the US – Dollar General, Family Dollar, Dollar Tree, Five Below, Big Lots, TJ Maxx, Sam’s Club, Costco, and Ollie’s Bargain Outlet.
Insights in Brief
- There are more than 37,000 discount stores in the US.
- Dollar General (16.9K) has the most number of stores.
- Texas (3.7K) has the highest number of stores.
- Dollar chains make up more than 80% of discount stores.
- Compared to December 2019, there are 674 fewer dollar chains in the US.
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How Many Discount Stores are there in the US
We analyzed a total of 37,530 stores from nine discount stores in the US.
Dollar General is the largest discount store chain with 16,952 stores across 46 states. Family Dollar has the second-largest presence, with 7,873 stores in 46 states. Dollar Tree comes third with 7,477 stores. Together the store count of dollar chains make up more than 80% of discount stores in the US.
Dollar Chain Trend in the US
Dollar Tree owns Family Dollar, and when combined with Dollar General, the three dollar chain brands have more retail locations than Subway and Dominos combined. While Dollar General and Dollar Tree have been slowly opening stores across the US, Family Dollar has been shuttering stores at a faster pace.
Compared to December 2019, there are 674 fewer dollar chains in the US. Currently, there are 32,302 dollar chains in the US compared to 32,976 in December last year.
Dollar General Location US
Dollar General is currently the largest US retail chain by store count with 16,952 stores. California (621), Texas (620), and Florida (562) are the states with the most number of Dollar General stores.
Dollar General Corp. has made efforts to expand in the food and beverage category. The program ‘Better-For-You’ was launched in response to feedback from customers who are starting to look for healthier food options at affordable prices. Better For You is currently available in 17.4% of stores.
Dollar General also has other services like curbside pickup and fast track service Dollar General Go, where you can scan products on your phone and skip the checkout line.
Family Dollar Locations US
There are 7,873 Family Dollar stores in the US. Texas (1,060), Florida (574), and Ohio (440) are the states with the most number of Family Dollar stores. Compared to Dec 2019, Family Dollar stores have decreased by 17%.
31% of Family Dollar stores sell alcoholic beverages, but only offers a variety of beer and wine.
Dollar Tree Locations US
There are 7,477 Dollar Tree stores in the US. Texas (1,601), Georgia (953), and Florida (926) are the states with the most number of Dollar Tree stores.
In 2018, Dollar Tree started the ‘Snack Zone’ in around 200 stores, designed to provide customers with a compelling assortment of immediate consumption products at the $1 price point to drive incremental sales. Snack Zone has generated additional foot traffic and is available in more than 2.5K Dollar Tree stores.
Five Below Locations US
Five Below, which promises nothing pricier than $5, has 1,018 stores in the US. Texas (110), Florida (96), and Pennsylvania (67) are the states with the most number of Five Below stores.
Big Lots Locations US
Based in Columbus, Ohio, Big Lots Inc. operates in 1,404 stores in 47 states. California (152), Texas (112), and Florida (105) are the states with the most number of Big Lots stores. Despite being a furniture company, Big Lots has benefited during the coronavirus pandemic as its an essential retailer that also sells food and household items.
The Supplemental Nutrition Assistance Program or SNAP is available in 89% of Big Lots stores. SNAP was created to help recipients maintain healthy diets by making relatively expensive items, like fresh produce, accessible to those with low incomes.
TJ Maxx Locations US
There are 1,274 TJ Maxx stores in the US. California (121), Florida (95), and New York (84) are the states with the most number of TJ Maxx stores.
Sam’s Club Locations US
There are 598 Sam’s Club stores in the US. Texas (82), Florida (46), and California (29) are the states with the most number of Sam’s Club stores. Sam’s Club has a variety of services in consumer healthcare such as retail health clinics, optical centers, dental care, and behavioral health needs. Sam’s Club also has in-store pharmacies in more than 90% of its locations.
The retail chain is a prominent player in the hearing aid market. It has hearing aid accessories and devices available in 78% of its locations.
Costco Locations US
There are 551 Costco stores in the US. California (130), Texas (33), and Washington (32) are the states with the most number of Costco stores.
Ollie’s Bargain Outlet Locations US
There are 378 Ollie’s locations in the US. Pennsylvania (45), Ohio (33), and Florida (31) are the states with the most number of Ollie’s stores. Ollie’s stores are only present in 25 states, but the company is planning on opening 50 new stores by the end of 2020.
States with Highest Number of Discount Stores
Texas has the most number of discount stores with 3,701 stores, followed by Florida (2.4K) and Ohio (1.9K). Texas is also the majority state for discount stores – Family Dollar, Dollar Tree, Five Below, and Sam’s Club.
Expansion of Discount Stores
Discount stores are thriving in the declining and confusing retail environment. These stores all have concrete business models that demonstrate their solid understanding of the marketplace and their consumer audience. Although department stores are in a setback, discount stores will continue to be a factor in sales for retailers in 2020 as consumers keep seeking out greater purchasing power from their limited resources.
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