Following is a remarkable fact: Dollar stores are currently feeding more Americans than Whole Foods is — although most dollar stores don’t have any fresh food, only a limited selection of packed items.
Dollar stores are multiplying at breakneck speed. Since 2011, both prominent chains — Dollar General & Dollar Tree (which owns Family Dollar) have risen from 20k to 30k places. And they say They’ve identified another 20,000 locations.
Dollar General is now by far the biggest threat to neighborhood grocery stores. In small cities, Dollar General’s arrival typically causes sales in the local supermarket to fall 30%. That is enough to put them in the red, and force them to close, though It might take a year or more.