Beneath the cloud of uncertainty presented by COVID-19, some retailers are thriving in the current environment. Dollar stores, the popular discount retailer segment, are expanding and at rapid rates in today’s environment. They have gained attention as success stories in the country’s most economically distressed places- mostly rural counties that have few retail options. The two leading discount retailers, Dollar General and Dollar Tree/Family Dollar, operate more than 30,000 stores nationally and plan to open thousands most, vastly outnumbering Walmart and other retailers. The unique real estate footprint, combined with their value and convenience, remains a competitive advantage during COVID-19.
The market for dollar stores is only getting stronger as other retailers struggle to keep up with the changing times. Currently, retailers that target middle-income shoppers, like J.C. Penney, Kohl’s and Macy’s, are losing customers, and dollar stores are getting that business. Dollar stores not only thrive in a strong economy, but they also realize stable growth in times of recession. This makes for both an attractive and reliable, nearly risk-free NNN investment.
This article reviews the strategies and performance of Dollar General and Dollar Tree/Family Dollar, and why investing in dollar stores provides growth, stability, and longevity.