There was a time not too long ago when ultra-discount stores like Dollar Tree, Five Below and Family Dollar were thriving.
During the COVID-19 pandemic and for a couple of years afterward, when inflation was rising quickly, shoppers looking for the best value flocked to these ubiquitous retailers.
The retailers, in turn, rushed to open more stores in order to keep up with demand.
At the end of 2024, there were 38,435 dollar stores in the U.S. — including 8,719 Dollar (DLTR) stores — an increase of 4,000 stores just since 2021.
Dollar Tree, like other dollar store brands, sells a variety of groceries in addition to household goods.
Image source: Shutterstock
Too many dollar stores nationwide
One reason dollar stores grew so quickly over the last decade is that they opened in underserved locations. Many people live in so-called food deserts, where there are no mainstream grocery stores.
The discounters swooped in, offering groceries at low prices. The stores often carry shelf-stable brands like Kraft Macaroni and Cheese, Cheerio’s Nature Valley and many others. Some dollar stores also carry fresh foods, such as milk and eggs (though these items rarely cost a dollar).
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Still, dollar stores have not been able to gain a foothold with middle-class customers, and even in lower-income areas, may have reached a saturation point.
Late last year, Family Dollar announced that more than 1,000 of its Dollar Tree stores would be closing.
At the same time, Walmart (WMT) and other discount retailers, like Targ (TGT) and Costco (COST) are doing very well, adding new stores and expanding their grocery offerings. Leadership at these companies has promised to keep prices low to appeal to cost-conscious consumers.
Walmart even announced that it would return the price of many goods, including food, to pre-inflation levels.
Another challenge for the dollar store category is they don’t offer online ordering and pickup/delivery which a growing number of shoppers prefer.
Moreover, dollar stores aren’t always cheaper than the big box stores. According to a recent Marketplace story, a bar of Dove soap at Dollar Tree costs $1.25, but at Costco, it’s $1.15 — and the bar is bigger.
Dollar Tree Inc. has new leadership
Perhaps in an attempt to regain momentum and better compete against the likes of Costco, Walmart and Target, Dollar Tree Inc. announced it has named Stewart Glendinning the company’s next chief financial officer, effective March 30.
Glendinning has been with the company since January 2025, having joined Dollar Tree earlier this year in a senior role focused on enterprise-wide transformation initiatives. Glendinning was initially tasked with reviewing strategic alternatives for the Family Dollar business, especially key areas within the company’s finance organization.
Glendinning will succeed Jeff Davis, who announced plans to step down in December. Davis will reportedly remain with the company for the short term to support a smooth transition.
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“We are pleased to announce that Stewart will become our next CFO,” said Mike Creedon, CEO of Dollar Tree Inc., in an announcement.
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“Stewart is a proven leader with a strong track record of driving financial excellence. In his short time with us, he’s contributed significantly to the review of strategic alternatives for our Family Dollar business, where we continue to make good progress. I look forward to working closely with Stewart as we seek to accelerate growth at Dollar Tree in 2025.”
Prior to joining Dollar Tree, Glendinning served as CEO of Express Inc. He previously held global CFO roles at Tyson Foods and Molson Coors Brewing Co. and held leadership positions at other Fortune 500 companies.
“I’m honored to step into the CFO role at Dollar Tree at such a pivotal time,” said Glendinning. “What attracted me to Dollar Tree is its amazing culture, the passion of its people, and a very meaningful opportunity to drive a huge amount of value for the business. I look forward to working with the leadership team and our talented finance organization to drive continued growth and financial strength.”
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