Dollar General's Foot Traffic Numbers Show The Store Isn't Slowing Down Any Time Soon
Practically everyone these days is shopping on a budget — a LendingClub report estimated that 61% of Americans live paycheck to paycheck. Essential goods like groceries, school supplies, and cleaning products can get pricey, especially as inflation continues to rise. Luckily, there are dollar stores like Dollar General that promise essential goods for mere dollars. When you set foot in a Dollar General, you are greeted with unbelievably low prices, thanks to the vision of founder Cal Turner. Per Zippia, Turner turned his chain of department stores into a dollar store retailer in 1955, based on the success of other department stores' "Dollar Days promotions," and renamed his chain to Dollar General. Almost 70 years later, Dollar General has over 18,000 locations in the United States, according to their company website.
The success of dollar store retailers has grown immensely. NPR reports that "88% of Americans shop at dollar stores at least sometimes." We have to admit, it's hard to say no to such a great deal, especially as prices on essential goods increase. While many stores have struggled to stay afloat amidst the changing trends in the consumer market, Dollar General seems to be benefiting. The List created a graph via Data Herald that tracked Dollar General's monthly foot traffic trends over the past two years, and the data confirms that dollar stores are on the rise.
Dollar stores provide relief for shoppers on a budget
Most consumers are navigating a volatile market while on a strict budget. However, stores like Dollar General offer a break from rising prices, and shoppers are definitely noticing. According to The List's graph, Dollar General saw an average of around 1.4 million shoppers each month pre-pandemic. When nationwide COVID-19 closures went into effect during the spring of 2020, Dollar General saw a small but not extremely worrisome drop in visitors. That following summer, the budget retailer recovered almost instantly. In the months that followed, The List's graph indicates noticeable growth: post-pandemic, Dollar General has seen a steady average of nearly 1.8 million shoppers, with some months reaching over 2 million.
As people are navigating rising costs, dollar stores like Dollar General offer essential groceries and home items at an extremely reasonable price, per Retail Wire. According to The New York Times, Dollar General's revenue and profit margins have increased significantly over the past year, providing reliable goods at a price point that most communities can afford during this time of inflation. Dollar Tree, Dollar General's bargain store rival, also saw a rise in profit, but their new $1.25 price tag has some people disappointed (via CNN). Regardless, dollar stores have continued to see massive success, providing shoppers with accessibility to their stores and the lowest prices on the market.