Dive Brief:
- Dollar General and Dollar Tree each posted robust year-over-year sales growth in their latest fiscal quarters on Monday, as the retailers both saw customer traffic and average basket sizes increase.
- Dollar General turned in same-store sales growth of 3.5% during its second quarter of fiscal 2026, while Dollar Tree’s comparable sales for its Q2 were up 3.7%.
- The discounters saw sales rise at a strong clip during a stretch when traditional supermarkets turned in weak results.
Dive Insight:
Both dollar retailers saw same-store sales increase during a period when their net sales powered ahead.
Dollar General’s and Dollar Tree’s results were considerably stronger than the financial performances supermarket chains have turned in recently. Kroger, for example, recorded comparable-store sales that were up just 1% during its most recent quarter, while Albertsons’ comps were off by a similar percentage.
Dollar General’s net sales for the quarter were up 5.2% year over year, reaching $11.3 billion. Meanwhile, Dollar Tree — which has fewer than half as many stores as Dollar General — saw a sales increase of 7%, pushing its net sales for the quarter to $4.9 billion.
“We are driving a better assortment in more and better-run stores and speaking to our customers in ways we never have before. While it’s still early, the customer response and performance we’re seeing gives us confidence in these initiatives and in the long-term opportunity ahead,” Dollar Tree CEO Michael Creedon said during an earnings call on Thursday.
Dollar General saw store traffic rise 2%, and its average basket size rose by 1.5%, CEO Todd Vasos said Thursday during the retailer’s earnings call.
“Notably, this marks the fifth consecutive quarter of growth in customer traffic as we continue to build on the momentum in our business with both new and existing customers,” Vasos said.
Dollar Tree’s average basket was up over 3%, and it posted a traffic increase of 0.4%.
Dollar Tree’s consumable sales growth was especially strong, rising 5.8% compared with the second quarter of fiscal 2025, CFO Stewart Glendinning said. By comparison, sales of discretionary goods rose only 1.6%. Glendinning added that the retailer expects consumables to lead sales growth during the second half of the year, noting that the trend will keep margins somewhat down.
Dollar General’s second fiscal quarter ended July 31, while Dollar Tree’s Q2 wrapped up on Aug. 1.
Both retailers said they used tariff refunds they received during the quarter to help bring down prices.
“We are putting those funds to work in areas where we believe they can have the greatest and most lasting impact,” Glendinning said during Dollar Tree’s earnings call about the $383 million tariff refund it received. “We are focusing those dollars on targeted pricing strategies, marketing, store operations and store conditions, areas that can benefit our customers today while strengthening the business for the long term.”
