Chains such as Dollar Tree, Dollar General and Family Dollar are some of the fastest-growing retailers in the U.S., with 35,000 locations and counting.
Now, brands are adding everything from razor blades to coffee to pet food at dollar store chains in order to reach budget-conscious shoppers.
These chains are able to open many more locations because, unlike traditional grocery stores, dollar stores can open in smaller buildings.
Dollar store chains are also opting to open stores in areas standard grocery stores won’t touch, including low-income communities and rural food deserts. They are serving these areas by stocking necessities such as milk, butter and eggs, as well as produce.
The strategy appears to be working.
Family Dollar had the second-highest growth in food beverage sales in 2022, according to the company’s most recent earnings report, more than Walmart, Sam’s Club, Target or Kroger. This is leading food manufacturers to expand and add more value-conscious options for dollar stores.
However, shopping at the dollar store no longer means everything costs a dollar. Some of these items could cost customers as much as $8.