Dollar General makes a U-turn in the United States after what happened with Family Dollar

In the competitive world of discount stores, there are clear signs that times are changing. Dollar General, one of the most popular chains among low-income communities in the United States, has decided to take a step back... to gain momentum.

After closely observing the collapse of its rival Family Dollar, the company is making significant adjustments in its course.

Until recently, Dollar General seemed unstoppable: new openings every week, massive remodels, and expansion plans across the country. But the numbers started to worry.

Declining profits, cost overruns in remodels, and consumers tightening their belts. Then came the blow that set off the alarms: Family Dollar, owned by Dollar Tree, had to close nearly a thousand stores.

That was the turning point.

Dollar General learns from Family Dollar

Dollar General's executives took note. What happened with Family Dollar was a warning about what occurs when you grow too fast without strengthening what you already have. In 2025, Dollar General decided to slow its full-speed expansion and focus on improving its current stores.

The strategy is now clear: fewer openings, more quality. This year only 575 new stores will open, a much more moderate number compared to previous years.

In return, they will remodel more than 4,000 locations, with visible improvements for customers. There will be new spaces, better products, and in many cases, even fresh fruits and vegetables.

More than just discounts

Part of the change also has to do with how the company views its customers. Before, the goal was to have a store on every corner, but now the bet is to offer a more comfortable, modern, and organized shopping experience. This is shown by the changes in the stores with the "Project Elevate" program, which seeks to make them more attractive and efficient.

Additionally, Dollar General is restructuring its internal brands. For example, it halted the expansion of its Popshelf stores, aimed at a middle-income audience. The reason? The results were not the desired ones, and the company prefers to focus on what does work.

The blow of the economy

Added to this is a complicated context: persistent inflation, consumers buying less, and new tariffs that make imported products more expensive. All this directly affects companies like Dollar General, which have been a refuge for many Hispanic families looking to save on their daily purchases.

Despite everything, the chain remains stronger than its competitors. Its revenues in 2024 exceeded 40 billion euros, far above what the combination of Dollar Tree and Family Dollar achieved. But even giants must adapt.

Looking ahead

The message Dollar General leaves with this change is clear: it's not just about growing, but about growing well. The company has understood that to survive in this new scenario, it's not enough to have many stores. You need to have stores that work, that listen to the customer, and that respond to what the current consumer really needs.

If something has become clear, it's that in the retail world, learning from others' failures can be the best investment.