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Alex Bitter
- Dollar General and Dollar Tree are some of the most common discount stores in the US.
- But Dollar Tree grew same-store sales last quarter while they shrank at Dollar General.
- I visited both stores and Dollar Tree has the advantage over its rival when it comes to cleanliness.
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Dollar stores have become a staple of shopping in the US. But some are doing better than others.
One of the largest dollar store chains, Dollar Tree, reported that same-store sales grew 6.9% during the latest quarter ended July 29. Rival Dollar General, meanwhile, said that same-store sales fell 0.1% for the quarter ended Aug. 4.
Both dollar store chains have benefited over the last few years thanks to expanding store networks and shoppers spending more on discretionary items, such as home decor and toys, early during the pandemic.
But a problem at Dollar General appears to be catching up with the company. Many of its stores have been overrun with merchandise for months or years. It sits in the aisles, blocking fire exits and making getting around the stores tough. In some cases, the mess has gotten so bad that stores have had to close to clean up.
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Dollar General executives said in the company's latest earnings call that they're finally taking action. Dollar General is making $95 million in item markdowns to quickly clear excess inventory from store shelves. Dollar General is also rolling out what CEO Jeff Owen called "smart teams," or groups of workers who move from store to store cleaning up the mess.
To see for myself how significant the disorder is at Dollar General, I visited some of their stores in Southern Maryland, about an hour's drive from Washington DC. I also visited other dollar stores, including one Dollar Tree and another that uses the Family Dollar name.
Dollar General declined to comment to Insider for this article. Dollar Tree, which also owns Family Dollar, did not respond to a request for comment.
Do you work or shop at Dollar General, Dollar Tree, or Family Dollar and have a story idea to share? Contact Alex Bitter by email at abitter@businessinsider.com or via text/encrypted messaging app Signal at (808) 854-4501.
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My first stop was a Dollar Tree store at a mall in Waldorf, Maryland.
There was a wide variety of stuff inside, and it was almost all neat and tidy.
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One thing I noticed right away: Dollar Tree sticks closely to its $1.25 price point for most items. Other dollar stores carry higher-priced items, as I'd soon learn. After I visited, Dollar Tree announced it would be raising prices on some items.
Alex Bitter/Insider
Like most dollar stores, there wasn't any fresh produce, but there was a wide range of frozen and packaged foods.
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Startup brands like Flow water were well-represented on Dollar Tree's shelves.
Signage above the food section called attention to Dollar Tree's selection of snacks, which I found to be the most impressive part of the store.
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Some were things I had never seen before, such as these fruit snacks flavored like an Arnold Palmer.
There were also lots of well-established brands, such as this orange soda from Faygo, which traces its roots over a century ago to Michigan.
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In general, the shelves seemed well-stocked. I wouldn't have a problem stocking my pantry at a store like this.
And unlike some Dollar General stores that I've reported on, the aisles were free of any boxes, unpacked merchandise, or other obstructions.
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I ended up buying a few snacks and drinks as well as this pack of plastic food containers.
This Dollar Tree also had a wide selection of crafting and wrapping supplies, such as these gift bags.
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I'm not a regular shopper at craft stores like Michael's, but this could be a money-saving alternative to those chains, depending on what you need.
Overall, it was a fine experience. I found something that I needed for my kitchen, and I was impressed by the snack selection.
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My next stop was Dollar General. This store was also in Waldorf, though it was a few miles down the road from the Dollar Tree and is a stand-alone location instead of being part of a mall.
This store reminded me of pictures that shoppers and workers had sent me before. I saw unpacked merchandise blocked many of the aisles, and what was on the shelves was often a mess.
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Grey plastic totes used to ship inventory from Dollar General distribution centers sat overflowing — or, in this case, on top of — the stuff that was actually for sale.
I visited this store in the early afternoon, and there appeared to be just one employee on duty. They were dividing their time between stocking shelves and ringing up customers at the register.
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The boxes of unpacked merchandise blocked many of the shelves, making it hard to get a full picture of the merchandise that this store offered.
Some sections were relatively more tidy and well-stocked, such as this cooler containing milk and juice.
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Other sections, such as this selection of school supplies, appeared simultaneously messy and understocked.
Outside, I found rolltainers that were mostly full of cardboard boxes.
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In between some of the rolltainers, I found jugs of milk and other dairy products that appeared to have sat out of refrigeration for too long and spoiled.
It clearly wasn't for sale anymore, but I wondered what had happened to it before it was thrown out, especially since it appeared to be well past its sell-by date.
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Overall, the store was just too chaotic to shop at. Unless it was my only option, I wouldn't go there.
Fortunately, Dollar General is far from the only shopping option in Waldorf. There's a Food Lion less than a mile away, for instance.
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And just half a mile in the same direction is this Family Dollar store, where I stopped next.
As I walked in, an employee greeted me and said "Welcome to Family Dollar." That didn't happen at either of the two stores that I visited previously.
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The store was a sharp contrast with the Dollar General I visited. The shelves were well-stocked, and the aisles were clear of boxes and inventory waiting to be unpacked.
The range of grocery items was similar to Dollar General and Dollar Tree. There still wasn't any fresh produce, but items like milk were available.
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There were also lots of store-brand imitators of brand-name products, such as these "Pop-Ups."
Like Dollar Tree, this store also had boxes of Flow water and other upstart food brands.
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But that selection comes at a price — literally. Many of the products at Family Dollar are far too expensive for a store like Dollar Tree to carry for just $1.25.
Family Dollar had a selection of name-brand baby diapers, for example, which were on sale at two packs for $19.
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In that sense, the Family Dollar store I visited felt like a mini-Big Box store, or the small-format stores that Target has opened in many urban areas.
Overall, the dollar stores I visited seemed best for packaged foods and random household goods, such as the food containers that I bought at Dollar Tree.
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If I lived in a community that had all three stores and had to pick between them, I'd probably shop at Family Dollar. The store was clean, the staff was friendly, and the selection of products seemed to be widest, although it was the priciest.
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