Dollar Tree Similar Companies, Competitors and Alternatives In 2023

Anyone who is looking to save a few bucks while shopping is bound to know about Dollar Tree. It is a discount store chain that sells goods in the most common sectors and of regionally popular brands. It has a vast array of logistics and 24 distribution hubs. Its stores cover a large area, and you may be surprised to know that it has over 15,000 such outlets throughout the United States and Canada.

Dollar Tree was officially established in 1991, but its history is far richer and deeper than just 31 years. One of the primary founders, K. R. Perry, launched his first variety store in 1953 in Norfolk, Virginia under the name K&K 5&10. A few years later, he collaborated with Doug Perry and Macon Brock to open toy stores and dollar outlets (named Only $1.00). These dollar stores eventually gave birth to Dollar Tree.

Name	Dollar Tree
Founded	1991
Headquarters	Chesapeake, VA
SIC Code	5331
Status	Public, Independent Company
Industry Sector	Retail, Discount
Employees	193,100
Trading Symbol	Nasdaq: DLTR

How Dollar Tree makes Money

The business model of Dollar Tree is akin to most other variety stores out there. Unlike, say, Sony which manufactures the products to be sold, Dollar Tree purchases the products from other manufacturers to sell them in their stores at a considerable discount. So how does the company make profits? The thing is, the business strategy of Dollar Tree is a bit more complicated than simple buy and sell. It revolves around making maximum profits for the company while also satisfying the consumers.

Retail / Discount

As you might know, the retail industry is insanely competitive. That is why many businesses in the industry try to stay ahead of the competition by offering attractive discounts. And dollar stores aren’t exactly a new concept in the discounts sector. However, Dollar Tree has taken this sector to a whole new level by offering exceptionally competitive prices.

Companies Similar to Dollar Tree

Despite competing in the low-end retail market, Dollar Tree generates revenue of over $25 billion. It is featured in the Fortune 500 list, and it has an operating income of more than $1.8 billion. However, for whatever reason, if you are looking to switch your regular discount store from Dollar Tree to some other company, then here are four spectacular alternatives for you.

Competitors to Dollar Tree

The biggest rivals to Dollar Tree are Dollar General, 99 Cents Only Stores, Target, and Walmart. There are many other competitors out there, but these four are the most capable ones. Let’s discuss Dollar Tree’s similar companies in more detail.

Dollar General

The name, Dollar General, itself proclaims that it is a dollar store. It offers the same kind of products as Dollar Tree for almost similarly discounted prices. And since the organization has over 18,000 outlets in the US, there is a high chance that there will be a Dollar General store in your vicinity. Thus, you most probably won’t need to commute too far for acquiring your everyday needs after switching stores.

Retail / Discount

The business strategy of Dollar General is the same as that of Dollar Tree. For instance, it saves a great amount on customer service by letting the individuals shop on their own. These savings are accumulated to provide attractive prices on their products. The company’s operating income of $3.2 billion is much higher than Dollar Tree’s, which is a given since Dollar General has a greater number of stores.

Annual Revenue	Funding	Headquarters	Employees
$34.2B	$50M	Goodlettsville, TN	158,000

99 Cents Only Stores

Don’t go by the name of the company, because it barely offers any products for 99 cents these days. There was a time when it did, but that day and age is long past, thanks to the exploding economy. On the other hand, you find various items for superbly discounted rates at 99 Cents Only Stores, for it is indeed a dollar store. And there are, in fact, a few good products that are available for 99 cents even today!

Retail / Discount

99 Cents Only Stores is often included among the giants in the retail industry, quite like Microsoft, which is featured on the top technology lists. 99 Cents Only Stores’ operating model is similar to that of Dollar Tree. But there is an additional benefit of shopping for closeout branded merchandise for surprisingly cool discounts. Nonetheless, the company amasses an income of only $53 million, much less than Dollar Tree.

Annual Revenue	Funding	Headquarters	Employees
$2B	$210M	Commerce, CA	17,000

Target

Target is a chain of superstores or big box stores based in Minneapolis, MN. It is focused on providing everything that an average customer requires, so it isn’t exactly a dollar store like Dollar Tree. However, Target sometimes offers its products at discounted prices, and there are a few stores dedicated to discounts as well. It is thus that Target has earned its place on this list.

Retail

As mentioned before, Target may be focused on retail, but it also provides attractive discounts on its products. The company was founded in 1962, and it was called a series of names that started with Dayton till 2000, after which it was officially called Target Corporation. The company’s income for the year 2021 was $6.5 billion, much more than Dollar Tree’s.

Annual Revenue	Funding	Headquarters	Employees
$106B	$80.35M	Minneapolis, MN	409,000

Walmart

It is unfair to feature a multibillion corporation like Walmart in this low-end retail list of competitors. However, when you consider the range of discounts provided by Walmart every month, then you may take it as an unprejudiced addition. Walmart owns and manages a string of supercenters that sell a variety of merchandise. You name it, Walmart most probably has it! The company is almost always included at the top of a number of retail competitors’ lists.

Retail

Walmart rules the roost in the retail industry with its incredibly high operating income of $25.9 billion. It often provides discounts on its products, making it a formidable competitor in the discounted goods sector as well. Founded in 1962 as a single discount store, it rapidly expanded its territory and list of products to become the retailing giant that it is today. It even has a number of region-specific giant subsidiaries under its wing, like Massmart and Flipkart.

Annual Revenue	Funding	Headquarters	Employees
$572.8B	$400M	Bentonville, Arkansas	2,300,000

Conclusion:

Dollar Tree’s biggest competitor is Dollar General. Of course, in terms of revenue, it has to be Walmart. But considering the similarity in the industry sector, Dollar General ranks at the top. As you may have noticed, almost every little statistic of Dollar General is higher than that of Dollar Tree. And it is quite likely that there is a Dollar General store in your neighborhood if there is Dollar Tree in the vicinity, for both these chains have the same target audience – rural localities.