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Dollar Stores Remain Retail Success Story, Continue to Defy Online Disruption

“With solid new store productivity, we have the opportunity to significantly increase our mature store remodel program with the goal to touch each location approximately every seven to 10 years,” advantages and disadvantages of online shopping Vasos said. Dollar General rival Dollar Tree has been on a similar growth path, but with fewer store openings. It opened a total of 169 new stores, 99 Dollar Tree and 70 Family Dollars this past quarter. It relocated or expanded 23 stores, 19 Dollar Trees and four Family Dollars. It renovated 191 Family Dollar stores for a total of 383 projects during the quarter. “We ended our third quarter this year with a total of 565 more Dollar Tree stores than the same time one year ago,” said Gary Philbin, president of Dollar Tree. “We are a company that’s going to grow hundreds of stores each year when other retailers are potentially pulling back. I think it’s still a great opportunity for us to deliver value best online shopping websites and convenience in this sector, which I think is the place to be,” he said. Shares of Dollar Tree and Dollar General are up about +20% and +23% year over year, respectively, according to Nicholas Supple, a quantitative analyst with CoStar Portfolio Strategy. Buttressing the increase in share price, both stores posted quarterly results showing same-store sales growth about 2%. “Both stores continue to rely on brick-and-mortar expansion to fuel this growth, without a significant online presence,” Supple said.

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