Battle between dollar store chains comes down to real estate 


    America’s two leading dollar store chains are heading in opposite directions—while one discounter is expanding aggressively, its rival is contracting. 

    The difference comes down largely to the choice of real estate, The Wall Street Journal reports.

    Dollar General announced last month it plans to add about 800 new stores this year, bringing its total to nearly 21,000. As the largest dollar store operator in the country, its stores are located predominantly in rural areas where they usually face little competition. 

    By contrast, Dollar Tree recently announced it would close 600 of its Family Dollar stores by early August. That discount chain, which Dollar Tree acquired in 2015, offers similar products at roughly similar prices to its main competitor. But its stores are concentrated in more expensive urban and suburban areas, where a variety of discounters compete for market share.

    Even with Family Dollar’s shrinking footprint, the dollar store sector is expected to add thousands of stores in the coming years as demand remains strong for low-price essentials.

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