Discount and dollar stores continued to expand their real estate footprints last year, which translated into higher year-over-year visits at Dollar General, Dollar Tree and Five Below. The trio's traffic improved 5.1%, 5.2% and 12.8% respectively, according to data from Placer.ai. And the trend has continued so far in 2025.
Dollar General and Dollar Tree plan to add 1,300 stores this year, the largest expansion activity of all U.S. retailers. Discounters are also remodeling existing stores to continue growth, which could lead to more foot traffic, said Placer.ai.
The report revealed evidence that an increase in repeat visits may be driving some of this growth. Average visits per customer to all three retailers has steadily increased since the first quarter of 2023. Placer.ai attributed this trend to consumer prioritization of value, which it expects to continue in the near term.
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Increasing returns and a larger share of weekday visits could signal that dollar stores are also beginning to be viewed as a destination for buying daily essentials rather than a place for treasure hunting non-necessities, said the report. All three chains saw increased traffic Monday through Thursday compared with 2023.
Five Below, which is best known for its discretionary offerings in mostly durable goods categories, saw the largest boost in weekday visits, growing from 45.1% in 2023 to 46.4% in 2024. The report said the retailer is gaining traction in consumable categories like snacks, health and beauty, which are considered essential products that consumers might need to replenish mid-week.
All three retailers are responding to this shift in demand for essential items by expanding their product assortments, according to Placer.ai.
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Kristen Smithberg
Kristen Smithberg is a Colorado-based freelance writer who covers commercial real estate, insurance, benefits and retirement topics for BenefitsPRO and other industry publications.
