We went shopping at Dollar General and Five Below to see which rapidly growing discount store offered a better experience, and the winner was clear

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We went shopping at Dollar General and Five Below to see which rapidly growing discount store offered a better experience, and the winner was clear

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Business Insider/Jessica Tyler

Dollar General and Five Below both had a lot of clearance sales on top of their already low prices.

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  • Dollar stores are having a moment. Dollar-store sales in the United States grew from $30.4 billion in 2010 to $45.3 billion in 2015.
  • Dollar General currently has about 15,000 locations, with plans to open 900 in 2018. Comparable sales were up 3.7% at Dollar General in the second quarter.
  • While not a traditional dollar store in that its products are priced up to $5, Five Below currently has 625 stores, and it plans to open 50 more this quarter alone. In the second quarter of 2018, Five Below's comparable sales grew by 2.7%.
  • We shopped at Dollar General and Five Below and found that Five Below offered a superior shopping experience.

Dollar stores have been growing like crazy over the past few years.

From 2010 to 2015, dollar-store sales grew from $30.4 billion to $45.3 billion in the United States. Dollar General, Dollar Tree, and Family Dollar have all announced plans to open hundreds of stores this year.

Dollar General currently has around 15,000 locations. In 2017, Dollar General opened new locations at a rate of around four stores a day, and in 2018 it plans to open 900 more stores at a rate of about three stores a day. In the second quarter of 2018, Dollar General reported same-store sales were up 3.7%.

While not a traditional dollar store in that its products are priced up to $5, Five Below announced its own plans to grow earlier this year. In the second quarter of 2018, Five Below's comparable sales grew by 2.7%. It has opened 67 new stores so far in 2018 and plans to open another 50 this quarter in addition to the 625 stores it already operates, CEO Joel Anderson said in an earnings call earlier this month.

One of those stores will be a flagship location on New York's Fifth Avenue, one of the most expensive shopping destinations in the US, CNBC reported.

We compared what it's like to shop at the two rapidly growing dollar stores and found that one offered a far better experience. Here's the verdict:

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The Dollar General we visited was in Queens, New York.

The Dollar General we visited was in Queens, New York.

In the front of the store was a table with seasonal summer products that were 40% off.

In the front of the store was a table with seasonal summer products that were 40% off.
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Also near the front of the store was a small shelf with phone chargers that cost between $5 to 15.

Also near the front of the store was a small shelf with phone chargers that cost between $5 to 15.

The aisles nearest to the entrance were filled with chips and candy anywhere from $1 to $5.

The aisles nearest to the entrance were filled with chips and candy anywhere from $1 to $5.
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It also carried sodas and energy drinks...

It also carried sodas and energy drinks...

...spices, condiments, pasta, cereal, and other basic food products. There was a decent variety of different brands and sizes, including its own private label Clover Valley brand.

...spices, condiments, pasta, cereal, and other basic food products. There was a decent variety of different brands and sizes, including its own private label Clover Valley brand.
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There was a small aisle with drugstore makeup brands like Maybelline and Covergirl, ranging anywhere from $3 to $10 for most products. There were a ton of products crammed into the small space.

There was a small aisle with drugstore makeup brands like Maybelline and Covergirl, ranging anywhere from $3 to $10 for most products. There were a ton of products crammed into the small space.

There was a small shelf of $3 books in the back corner of the store, but there wasn't a ton to choose from.

There was a small shelf of $3 books in the back corner of the store, but there wasn't a ton to choose from.
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There were a few aisles of home decor and seasonal Halloween and Christmas products, most of which cost $3 or less, but it was pretty messy. There were a lot of empty shelves towards the back of the store.

There were a few aisles of home decor and seasonal Halloween and Christmas products, most of which cost $3 or less, but it was pretty messy. There were a lot of empty shelves towards the back of the store.

It also had a small selection of toys...

It also had a small selection of toys...
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...lots of cleaning supplies, storage bins, and other home products....

...lots of cleaning supplies, storage bins, and other home products....

...and pet food and toys.

...and pet food and toys.
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Even though most things in the store were pretty inexpensive as is, there was an entire aisle of products that cost exactly $1.

Even though most things in the store were pretty inexpensive as is, there was an entire aisle of products that cost exactly $1.

The store also had a clearance section, though it was a bit of a mess.

The store also had a clearance section, though it was a bit of a mess.
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By the register were magazines, candy, gum, and other small products. The store had a pretty big variety of products, and even though it was a bit disorganized, you'd definitely be able to find most things you need for under $15.

By the register were magazines, candy, gum, and other small products. The store had a pretty big variety of products, and even though it was a bit disorganized, you'd definitely be able to find most things you need for under $15.

The Five Below we went to was also in Queens.

The Five Below we went to was also in Queens.
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Even though everything in the store already cost $5 or less, many products were 50% off.

Even though everything in the store already cost $5 or less, many products were 50% off.

Near the front of the store were wheelbarrows filled with school supplies. Dollar General had some school supplies, but not nearly as many as Five Below.

Near the front of the store were wheelbarrows filled with school supplies. Dollar General had some school supplies, but not nearly as many as Five Below.
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Five Below carried electronics like headphones and phone chargers, and everything cost under $5.

Five Below carried electronics like headphones and phone chargers, and everything cost under $5.

Five Below didn't carry any food like Dollar General did, but the front of the store was like a small candy store. There was also a small cooler selling drinks like Red Bull and soda for under $5.

Five Below didn't carry any food like Dollar General did, but the front of the store was like a small candy store. There was also a small cooler selling drinks like Red Bull and soda for under $5.
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There were a ton of cosmetics products from drugstore brands and smaller brands alike. There was a surprising amount of all-natural and cruelty-free brands, which are typically more expensive.

There were a ton of cosmetics products from drugstore brands and smaller brands alike. There was a surprising amount of all-natural and cruelty-free brands, which are typically more expensive.

There was a wall of $5 clothes and shoes, selling simple styles like black boots, plain tank tops, and pajamas that you might also find at a store like Target. The styles were all very basic, and the quality was better than you'd expect on a $5 pair of shoes.

There was a wall of $5 clothes and shoes, selling simple styles like black boots, plain tank tops, and pajamas that you might also find at a store like Target. The styles were all very basic, and the quality was better than you'd expect on a $5 pair of shoes.
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The middle of the store had books for $5 or less, and carried a much bigger selection than Dollar General.

The middle of the store had books for $5 or less, and carried a much bigger selection than Dollar General.

Five Below didn't have seasonal products out yet when we visited, but it did have a lot of home decor products for around the same price as Dollar General.

Five Below didn't have seasonal products out yet when we visited, but it did have a lot of home decor products for around the same price as Dollar General.
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There were toys and games...

There were toys and games...

...fitness equipment...

...fitness equipment...
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...and craft supplies. While it had a lot more toys, games, and arts and crafts supplies, it didn't have as many cleaning supplies or pet products as Dollar General.

...and craft supplies. While it had a lot more toys, games, and arts and crafts supplies, it didn't have as many cleaning supplies or pet products as Dollar General.

Even though Dollar General had more in terms of food and other necessities, the products that the stores did have in common were higher quality and less expensive at Five Below than Dollar General, and the store was also cleaner, brighter, and more pleasant to shop in, making it the clear winner.

Even though Dollar General had more in terms of food and other necessities, the products that the stores did have in common were higher quality and less expensive at Five Below than Dollar General, and the store was also cleaner, brighter, and more pleasant to shop in, making it the clear winner.
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