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Retail

Dollar Stores Ahead of the Holidays

How are Dollar Tree and Dollar General doing ahead of the holidays? We take a closer look.

By 
Bracha Arnold
November 25, 2024
Dollar Stores Ahead of the Holidays
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Key Takeaways
  • Year-over-year (YoY) visits to Dollar Tree and Dollar General were positive in all months analyzed, with Q3 2024 visits for the two chains elevated by 5.3% and 4.8%, respectively, compared to Q3 2023.
  • Weekly visits to Dollar Tree and Dollar General tended to increase gradually following Black Friday and peak on the last full week before Christmas. 

Shoppers continue to prioritize value in 2024, offering opportunities for discount and dollar stores to thrive during the upcoming holiday season. 

With that in mind, we took a look at visitation metrics – both from 2024 and from previous years – to see how the segment is performing and what the crucial holiday season might hold for discount retailers Dollar Tree and Dollar General.

Foot Traffic Shows No Signs of Slowing

Discount and dollar stores continue to benefit from an inflation-impacted economy, with category leaders like Dollar Tree and Dollar General continuing to expand their footprints to serve the increasing number of budget-conscious shoppers.

And in large part thanks to the increased store count, visits to Dollar Tree and Dollar General have continued to increase – Q3 2024 visits to the chains were up by 5.3% and 4.8% YoY, respectively. Monthly visits also showed impressive growth, with October 2024 visits up by 7.6% at Dollar Tree and 7.8% at Dollar General. These growth numbers may be slightly lower than the visit increases posted by the category in the past – but the ongoing positive performance by discount & dollar store leaders indicates that the category remains one of the most consistently strong players in the wider retail space.   

When Do Visits Get Their Biggest Boosts?

November and December are typically the most important months for retailers as multiple shopping events – Turkey Wednesday, Black Friday, Christmas Eve Eve, and Boxing Day – drive consumers to the tills. And while many retailers open the holiday season with visit spikes driven by big Black Friday discounts, the visitation patterns look slightly different at discount chains, where prices are already low and discounts are – as their name implies – already applied. So when do these retailers get their holiday visit boosts? 

Comparing weekly visit numbers in 2021, 2022, and 2023 to each year’s weekly average reveals differences between the two discount & dollar store leaders. Visits to Dollar Tree gradually increase from early November onward and peak on the last full week before Christmas, likely driven by shoppers flocking to its stores to pick up snacks, gift wrap, and stocking stuffers. Meanwhile, Dollar General’s visits exhibited more stability – although visits were higher than average between Black Friday and Christmas Eve Eve, the increase was much more muted relative to Dollar Tree’s holiday spike. Dollar General’s softer holiday traffic may be due to the expansion of its Dollar General Market concept, which turned many of its stores into destinations for fresh foods – so consumers may be treating Dollar General more like a grocery store and less like a holiday shopping spot. 

Previous years’ visitation patterns indicate that the busiest time of the year is still ahead for Dollar General and Dollar Tree. How will these retailers perform during the critical pre-Christmas rush? Visit Placer.ai to find out.  

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