Shoppers Are Turning Away From Dollar Tree—Here's Why (2024)

A haven for bargain shoppers, Dollar Tree is one chain where you know what you're getting—and what you're paying for it. You can stock up on food, craft supplies, and even greeting cards at these stores, often paying only $1.25 per item. But while Dollar Tree certainly has its benefits, especially if you're on a budget, there are a few drawbacks to shopping at these retailers. In fact, some shoppers say they've been frequenting their local Dollar Tree locations less and less. Read on to find out why.

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It's not always more affordable.

Shoppers Are Turning Away From Dollar Tree—Here's Why (1)ZikG / Shutterstock

With a name like "dollar" in the head, it sends a message to shoppers that they can expect lower prices. But in reality, you can sometimes find better deals elsewhere.

In a video posted in May 2022, TikToker @JennaMena posted a video of shelf pricing at Walmart, all of which is lower than the standard $1.25 you pay at Dollar Tree.

"Just a few reasons why I will never shop at the Dollar Tree again," text overlaying the video reads, then panning to artificial flowers priced at 95 cents and name-brand Ajax dish soap at 98 cents.

Several Great Value products, Walmart's in-house brand, were also featured in the video, including two-packs of vanilla pudding for 92 cents, honey Dijon mustard for 92 cents, and frozen broccoli for 98 cents.

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Store conditions can be unsafe.

Shoppers Are Turning Away From Dollar Tree—Here's Why (2)Shutterstock

Dollar store chains haven't exactly made the best name for them in terms of store safety. Like other chains, Dollar Tree ran into issues with the U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) for dangerous store conditions.

In an April 24 press release, the agency said that Dollar Tree is facing $770,136 in proposed penalties due to issues at two Rhode Island stores, including obstructed exits, unsafe storage, and blocked access to fire extinguishers. Similar issues have been cited at Dollar Tree stores in Georgia, Idaho, Illinois, Massachusetts, Nebraska, New Jersey, New York, Rhode Island, Texas, and Wisconsin.

Speaking with GoBankingRates, ScottLieberman, founder ofTouchdown Money,identified this issue as a main reason why he doesn't rely on Dollar Tree anymore.

“They’ve repeatedly violated OSHA laws that are meant to protect employees," he told the outlet. "You’d think a billion-dollar company would care about the safety of its employees, but their actions prove otherwise."

Another customer also posted a TikTok video of store conditions featuring products and boxes blocking items.

"Are we in the warehouse? This gotta be a warehouse. This can't be a store looking like this," she said. "You can't even really walk."

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Some products may contain chemicals.

Shoppers Are Turning Away From Dollar Tree—Here's Why (3)Daniel Jedzura / Shutterstock

While you may save a few dollars by shopping at bargain stores, you'd likely shell out some extra cash if it meant keeping you and your family safe. Now, some shoppers are doing just that and skipping these retailers entirely.

In Feb. 2022, the Campaign for Healthier Solutions and the Ecology Center Healthy Stuff lab released a joint-product screening report that found the presence of hazardous chemicals in items sold by popular dollar store chains, including Dollar Tree.

According to findings, 52 percent of screened products (226 in total) from different Dollar Tree, Family Dollar, Dollar General, Five Below, and 99 Cents Only stores in several states and Canada contained one or more chemicals of concern, including lead.

"Don't buy anything from a dollar store that goes in your mouth or holds anything that goes in your mouth," a Redditor cautioned. "Also never buy anything electronic."

Another wrote, "I remember years back them finding some toxic stuff in dollar store toothpaste...I would not trust a lot of dollar store products. I go there pretty much for cards and wrapping paper and stickers."

Stores might not have working air conditioning.

Shoppers Are Turning Away From Dollar Tree—Here's Why (4)Krit Kongcharoenpanich / Shutterstock

This summer is breaking records in terms of heat—and many of us are saying a word of thanks for our AC, which is working overtime. When you're shopping, you also expect some relief in the form of cooler air than outside, but shoppers report that's not always the case at Dollar Tree.

"I have heard customers complain that our store is too hot to stay and shop," a Dollar Tree employee wrote on Reddit last month. "[Store manager] says the A/C is on, thermostat is set to 80 degrees."

Other employees chimed in to say they've contacted Dollar Tree's corporate office about the issue, with little success.

Shoppers Are Turning Away From Dollar Tree—Here's Why (2024)

FAQs

Why is Dollar Tree failing? ›

For fiscal 2023, the company lost $998 million, versus a profit of $1.6 billion in 2022. The key reason for its loss is a $594.4 million charge for portfolio review, a $1.07 billion goodwill impairment charge, and a $950 million trade name impairment charge.

What is going to happen with Dollar Tree? ›

In response to the dismal quarter, Dollar Tree said it will close roughly 600 Family Dollar stores in the first half of fiscal 2024, and about 370 Family Dollar and 30 Dollar Tree stores over the next several years as their leases expire.

Did Dollar Tree lose customers? ›

1. Dollar Tree is attracting new customers. Dollar Tree added 4.3 million new customers and Family Dollar added 2.3 million in the 12 months ending September 30, 2023, according to Rick Dreiling, Dollar Tree Inc. chairman and CEO.

Is Family Dollar going out of business in 2024? ›

At least 11 retail brands have said they're closing US stores in 2024, totaling up to 1,401 locations. Family Dollar is the largest chain on the list, planning to close at least 600 stores this year.

Why are dollar stores struggling? ›

The retailer blamed economic factors, including rising levels of “shrink,” inflation, and shifting consumer demand that has presented “significant and lasting challenges.” If you've lived in Southern California for a while, you'll remember when the dollar store truly was 99 cents per item or less.

Why is Dollar General doing better than Dollar Tree? ›

Dollar General appears to be doing better at hanging on than Dollar Tree, in part by beefing up some of its food and grocery offerings. At Dollar Tree, “It's been a rather dreary experience to go into the store for some time,” said Zak Stambor at eMarketer.

Who is Dollar Tree merging with? ›

We are writing a bold new chapter for our business — and for towns all across America. We've brought Family Dollar and Dollar Tree together under one roof, starting in small, rural towns across the country that had limited retail options. Our customers love the concept and we are expanding past just small towns.

What is the outlook for Dollar Tree? ›

Based on analyst ratings, Dollar Tree's 12-month average price target is $134.89. Dollar Tree has 39.77% upside potential, based on the analysts' average price target. Dollar Tree has a consensus rating of Moderate Buy which is based on 11 buy ratings, 8 hold ratings and 1 sell ratings.

Is Walmart closing stores in 2024? ›

Walmart closing more stores

The retailer has already closed 11 stores across the United States in 2024 due to a variety of issues, including underperformance.

Who is Dollar Tree's biggest competitor? ›

Dollar General is the largest dollar store with over 19,000 locations, more than double the number of the 8,000 Dollar Tree stores.

Who is Dollar Tree's rival? ›

Dollar Tree's competitors and similar companies include Target, Dollar General, Walmart, SuperValu and JD.com. Dollar Tree is an operator of discount variety stores. Target is a general merchandise retailer selling products through stores and digital channels.

Is Dollar Tree in debt? ›

Total debt on the balance sheet as of April 2024 : $10.34 B

According to Dollar Tree's latest financial reports the company's total debt is $10.34 B.

Is Dollar Tree closing in the US? ›

As such, Dollar Tree will be closing 600 stores under the Family Dollar brand in the first half of this year and an additional 370 in the coming years. Thirty Dollar Tree stores will also eventually get the axe.

Why are so many stores closing in 2024? ›

Some companies, including Express and Foxtrot, are in dire financial straits. Others, such as Walmart and TJX, have plans to expand by more stores than they close. Still others, like Foot Locker and Macy's, are shifting their strategies as shopping patterns change.

Is Macy's closing in 2024? ›

View all sponsors. First, Macy's will have to downsize. The company is closing 150 underperforming stores — 50 by the end of 2024 and the other 100 over the next few years. By 2026, it will have just 350 Macy's stores, the company announced.

Why is the dollar losing its value? ›

Currency depreciation, in the context of the U.S. dollar, refers to the decline in value of the dollar relative to another currency. Easy monetary policy by the Fed can weaken the dollar when investment capital flees the U.S. as investors search elsewhere for higher yield.

Why did Dollar Tree stock drop so much? ›

Dollar Tree (NASDAQ: DLTR) has seen its stock plummet by 25% year to date, driven by inflation and competition. The company's main consumer base is shifting towards less profitable consumables, and its acquisition of Family Dollar has been underperforming, leading to plans to close nearly 1,000 stores.

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