Mike Witynski and Michael Calbert
Mike Witynski and Michael Calbert
President and CEO; Chairman of the Board at Dollar Tree Stores; Dollar General
How well have discount retailers fared during the pandemic? According to a recent report from Coresight Research, of the 3,535 store openings announced across the U.S. in the first quarter of 2021, roughly half are from discount chains. Dollar General alone accounted for more than a quarter, announcing 1,035 openings in Q1; Dollar Tree followed with 393 openings.
For Dollar General, 2020 was, in fact, the company’s busiest year ever from a property perspective, as it completed a record 2,780 real estate projects, exceeding its initial projection of 2,580. That comprised 1,000 new stores, 1,670 store remodels, and 110 store relocations.
The retailer plans to set another record in 2021, projecting 2,900 real estate projects — 1,050 new stores, 1,750 remodels, and 100 relocations. Longer term, the company estimates that there are roughly 17,000 new store opportunities throughout the Lower 48.
Dollar Tree had a similarly busy 2020, opening 319 Dollar Tree stores and 177 of its Family Dollar locations. The retailer plans to open 400 new Dollar Tree stores and 200 Family Dollar stores in 2021, and renovate another 1,250 locations.
Both companies also pushed into new markets in 2020, with Dollar General opening the first five locations of its new pOpshelf concept, which targets a more affluent and suburban customer than its traditional stores. It plans to launch up to 50 more pOpshelf locations by the end of 2021, as well as place pOpshelf shops within 25 existing Dollar General stores.
Dollar Tree, meanwhile, executed on a combo store strategy aimed at boosting its presence in rural markets. These combo stores, which combine elements of both its Dollar Tree and Family Dollar brands, are targeted at towns with populations of between 3,000 and 4,000 people.
The retailer opened a test store in 2019, then added 32 combo stores in locations around the country over the second half of 2020. It is currently up to roughly 50 combo store locations nationwide.
“During this pandemic, we didn’t just survive through it. We thrived through it,” Dollar Tree’s Mike Witynski said during the company’s Q4 2020 earnings call.—A.B
