Family Dollar Lowering Prices to Compete With Dollar General

Joel Eisenberg

The beleaguered chain, which has permanently shuttered hundreds of locations in recent years, is undertaking a more competitive stance to win back customers.
Family DollarPhoto

Author’s Note

This article is based on corporate postings and accredited media reports. Linked information within this article is attributed to the following outlets: and


I write extensively about the Dollar Tree-owned Family Dollar chain on NewsBreak. The month of November has been particularly active for the company in terms of multiple temporary closures for various issues ranging from safety to lease culminations.

What has not been that frequently discussed, however, regards competition issues between the collective Dollar Tree-Family Dollar entity and the larger Dollar General due to pricing disparities, a matter that today is receiving new attention due to Family Dollar’s initiative to strategically lower their prices.

Let us explore further.

Family Dollar, 2022

In’s December 1st piece, ”Family Dollar is a Mess. It Hopes Lowering Prices Will Help,” it is reported the entity has been losing business to Dollar General for several years.

As excerpted from the article: Its main competition is the much larger Dollar General, which has grown rapidly over the past decade. The companies battle for many of the same low-income shoppers in cities and rural areas, and both sell mostly food and everyday items for between $1 and $10. But Family Dollar’s prices can be 10% to 15% higher than Dollar General’s and other discount competitors. Higher prices have contributed to weak performance, so the chain is dropping those prices in an effort to better compete.

The article notes specific discounts have already begun, and store traffic is increasing apparently as a result. Though the precise percentage of further discounts has not yet been announced by the company, a 5% across-the-board figure has been bandied by analysts. also states: The price cuts are part of Family Dollar’s new management’s attempt to overhaul the company’s brand image, and they come as most companies are raising prices to offset higher costs and consumers battle decades-high inflation. Even Dollar Tree — Family Dollar’s parent company that caters to middle-class, suburban shoppers — hiked prices to $1.25 last year after 35 years of sticking to $1. Although lower prices will squeeze Family Dollar’s profit in the short term, the executives believe the measures are necessary to revive the chain.


As the Family Dollar corporate office has been quiet as it regards further specific discounts, for now any such reportage is based on speculation.

It should be noted, however, that general word of new discounts, as a strategic business measure, has been announced by the company.

In the event of pertinent updates, I will share them here on NewsBreak.

Thank you for reading.

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I am an award-winning author, screenwriter for film and television, and producer. My mission on News Break is to share socially important perspectives on both culture and pop-culture. Member of PEN America, and the WGA.

Northridge, CA

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