Analyst: Dollar General growing as other brick-and-mortars fall

Dollar General has become a shopping staple across the country

Dollar General

(CNN)- While many stores are closing their doors because of competition from online retailers like Amazon, Dollar General has plans to open hundreds of new locations.

The discount chain plans to open 900 new stores next year — for the second year in a row.

Dollar General has become a shopping staple across the country.  It has more than 14,000 stores in 44 states. That’s a 35 percent increase from five years ago.

According to the company — by the end of the year — more than 75 percent of Americans will live within 5 miles of a Dollar General.

Dollar stores are one of the few groups in retail that are thriving. Many traditional brick-and-mortar retailers have been eclipsed by the growth of e-commerce.

Dollar General has succeeded thanks to its lean business model, said GlobalData Retail analyst Neil Saunders. Smaller stores sell cheap day-to-day essentials.

More middle income and affluent shoppers are helping lift Dollar General’s overall sales, but lower-income people remain the store’s primary customers. That diversity has been helping its sales — and number of properties — skyrocket.

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