RESOLVING THE LEDGER
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0 Share Newsweek is a Trust Project member See more of our trusted coverage when you search. Prefer Newsweek on Google to see more of our trusted coverage when you search. Dollar Tree has continued to expand its footprint across the U.S. even as several retail rivals are moving in the opposite direction.
A map tracking store openings and closures in July shows Dollar Tree opened 11 new locations, following nine openings in June, according to retail location data compiled by ScrapeHero and published by Supermarket News. By comparison, Save A Lot recorded seven closures in July, and Walgreens shuttered six stores.
The contrast highlights a broader shift in how Americans are shopping as many households continue searching for ways to stretch their budgets after years of elevated inflation.
Newsweek has contacted Dollar Tree for comment via email.
Dollar Tree has benefited from consumers becoming increasingly price-conscious.
In the first quarter of fiscal year 2026, the company reported net sales growth of 7.2 percent and comparable-store sales growth of 3.5 percent. It also opened 113 new stores during the quarter and said it planned significant store growth this year.
Industry analysts have noted that prolonged inflation has encouraged shoppers from a wider range of income levels to seek out discount retailers.
Retailers have reported attracting more affluent shoppers in recent quarters as consumers seek lower prices. Dollar General CEO Todd Vasos told investors in 2025 that "the trade-down is back" among both middle- and upper-income households, while Walmart said in February that households earning more than $100,000 accounted for the majority of its U.S. market-share gains.
Inflation has cooled from the highs seen in recent years, but prices remain significantly above pre-pandemic levels. The latest Consumer Price Index report showed that overall prices in July were 3.4 percent higher than a year earlier, while grocery prices rose 2.7 percent year over year, and fruit and vegetable prices increased 5.1 percent.
In simple terms, a shopping cart that cost $100 a year ago would now cost about $103, while some food categories have risen even faster . Those ongoing increases have prompted many consumers to prioritize value, allowing discount chains to attract new customers.
Dollar Tree has also expanded beyond its traditional single-price model, offering more products at different price points while maintaining its value-focused reputation.
During Dollar Tree's fourth-quarter fiscal 2025 earnings call, CEO Mike Creedon said by "introducing more price points, we've increased flexibility, improved relevance and deepened basket potential through complementary new offerings, delivering thrill of the hunt 'wow' value."
While Dollar Tree expands, some competitors are pruning their underperforming locations.
Walgreens—a major retailer that competes with Dollar Tree for convenience purchases, snacks, health products and household essentials—has been engaged in a multiyear effort to close underperforming stores . The company announced plans in 2024 to shutter about 1,200 locations over three years, citing weak retail sales, lower pharmacy reimbursement rates and the need to create a more profitable store network.
Safeway, part of Albertsons, competes with Dollar Tree in the broader grocery market. Albertsons has been reviewing its store portfolio following the collapse of its proposed merger with Kroger and has closed stores with expiring leases or weaker long-term prospects while redirecting investment elsewhere.
Save A Lot, another discount grocer competing for budget-conscious shoppers, has also recorded store closures as the grocery industry grapples with changing consumer habits, rising operating costs and intense competition from both traditional supermarkets and discount chains. Save A Lot Chief Legal and Development Officer David Buffa recently told Grocery Dive, "The declining store count is ... largely ones that we did not see as viable and worth pursuing long term." He also described the company's reduced store footprint as the result of a challenging macroeconomic environment.
For supermarkets and retailers across the country, the challenge is balancing higher operating costs with consumers who remain highly sensitive to prices.
Even though inflation has moderated, many shoppers have continued to feel squeezed by the cumulative effect of years of rising costs for groceries, housing, transportation and everyday necessities.
As a result, chains that emphasize low prices and quick shopping trips are often gaining customers, while retailers with less competitive pricing or weaker-performing locations are increasingly consolidating.
The latest store-opening data suggests Dollar Tree is one of the clearest beneficiaries of those trends, expanding at a time when several rivals are shrinking their physical footprints.
Contact Newsweek editors on this story: Matthew Robinson and Shakeema Edwards .
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