The War Between Amazon and the Dollar Store Sector

Jon Hipp

As we continue to grow into a digital age, we see more and more retailers developing their online presence to have a wider reach with consumers around the world. This is how Amazon become the shopping behemoth we know today. As a result, different brick-and-mortar stores struggle to create a business plan that addresses Amazon’s competition and eventually fall to the wayside. One sector, however, has not seemed to be taken aback from this competition—the Dollar Store sector.

The phrase “Amazon Proof” refers to the sectors unaffected by Amazon—that is, they are shielded from online disruptions and able to stand up and compete for business. That has tended to be the case for dollar stores, whether it be Dollar General, Family Dollar, Dollar General, or even Five Below. In this current climate, these stores have flourished—we see a continued uptick in sales on the net lease market, especially Dollar Generals. (I think it’s more we see an uptick in the number of new dollar stores on the market—not that more are selling).