Dollar General Is Betting Big on $1 Items, But Are They Actually Cheaper?

Dollar General is adding more $1 products to its shelves as rising costs push shoppers to stretch their budgets further and become more selective about what they buy. The discount chain now carries more than 2,000 products priced at $1 or less, while its Value Valley section includes more than 600 rotating $1 items.

Indeed, sales in Value Valley surged more than 16 percent during the second quarter, far ahead of Dollar General’s overall 3.5 percent same-store sales growth. The company has also added $1 displays to more than 9,000 stores and plans to increase the number of $1 items in its fall and holiday sets by roughly 40 percent. The strategy comes as consumers remain intensely focused on affordability amid elevated food and fuel costs.

So far, the formula is paying off for the retailer: Dollar General’s second-quarter sales rose 5.2 percent to $11.29 billion, while net income reached $550.3 million. But does a $1 price tag mean shoppers are really getting the best deal at the register? We did a deep dive to find out.

Side-by-side comparison

A spot check of Dollar General and Walmart prices shows there is no simple answer. Dollar General’s 16-ounce Clover Valley spaghetti costs $1, or about 6.3 cents per ounce. By comparison, Walmart’s 16-ounce Great Value spaghetti was listed at $1.24, or about 7.8 cents per ounce. The same held true for elbow macaroni: $1 for 16 ounces at Dollar General vs. $1.24 at Walmart. When looking at shelf-stable pantry staples, Dollar General is the clear winner both at the checkout counter and by unit price.

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Tuna told a different story. Dollar General listed a 5-ounce can of Clover Valley chunk light tuna for $1, equal to 20 cents per ounce. Walmart’s comparable 5-ounce Great Value version was 96 cents, or 19.2 cents per ounce, making Walmart slightly cheaper both upfront and by weight.

Canned green beans were similarly close. A 14.5-ounce Clover Valley can was listed at 85 cents, or roughly 5.9 cents per ounce, while Walmart’s 14.5-ounce Great Value version cost 82 cents, or about 5.7 cents per ounce. Other comparisons were essentially a wash. An 8-ounce bottle of Gain dish soap was $1 at Dollar General compared with 97 cents for the same size at Walmart.

Other essentials like toothpaste illustrate the more complicated side of dollar pricing. Dollar General lists several $1 oral-care options, including Aim toothpaste. A 4.5-ounce tube at $1 works out to about 22.2 cents per ounce. By comparison, Walmart offers a larger 5.5-ounce tube for $1.49, roughly 27.1 cents per ounce. Dollar General requires less money at checkout, but Walmart offers slightly more product for each dollar spent.

What does ‘cheaper’ really mean?

The comparison underscores an important distinction between the lowest upfront price and the lowest unit price. For consumers with enough cash to stock up on bulk, comparing price per ounce or serving can mean better long-term savings. But for a household with only $10 or $20 of spending cash available before the next paycheck, paying more today for a larger package may not be a feasible option.

That is where Dollar General’s model becomes more powerful. The company operates more than 21,000 stores, with approximately 75 percent of the U.S. population living within five miles of one. Higher and more volatile fuel costs linked to the war in Iran have also pushed consumers toward choosing fewer trips or opting for grocery stores closer to home.

The real affordability calculation, then, is not simply shelf price versus unit price. It can also include available means, package size, gas, and the distance required to reach another retailer. Dollar General’s booming $1 assortment does not prove that every dollar item is always the cheapest option; our comparison found some that clearly beat Walmart while others did not.

Ultimately, the $1 label is a good starting point, but shoppers should still factor in prices and package sizes to determine where their money goes furthest.