What: Dollar General announced plans to open 800 new stores, remodel 1,500 locations, and relocate 85 stores this year, contrasting with Dollar Tree's decision to close hundreds of Family Dollar stores.

Why it is important: This aggressive expansion strategy by Dollar General highlights its commitment to growth even as the retail sector faces challenges from inflation and changing consumer behaviours. The strategy underscores Dollar General's position as a leading discount retailer and its confidence in meeting consumer demand for value in a tight economic environment.

Dollar General's expansion includes the addition of 800 new stores and a significant number of remodels and relocations, totaling 2,385 real estate projects for the year. This growth comes as its chief rival, Dollar Tree, announces the closure of approximately 600 Family Dollar stores due to underperformance. Dollar General's expansion is not limited to the U.S.; it also plans further openings in Mexico and cautious growth of its Popshelf concept due to the current discretionary sales environment. The company's recent performance showed flat same-store sales growth, attributed to an increase in consumables offset by declines in other categories. Despite these challenges, Dollar General remains optimistic about future sales growth, projecting a 6% to 6.7% increase for the next year. This expansion and positive outlook reflect Dollar General's strategic focus on enhancing its store network and meeting the needs of value-conscious consumers.

Dollar General expands with 800 new stores amid Dollar Tree's retreat