- Dollar Tree (about 17K locations)
- Dollar General (20K)
- Five Below (2K)
- Family Dollar (8K)
Some brands have struggled over the years. Big Lots filed for bankruptcy in 2024 and Tuesday Morning (furniture) now only operates online.
Factory outlet malls (about 200 throughout the U.S.) generated about $65B in revenue last year. The companies that manage most of them are Simon Property Group (which owns about half, including “Premium Outlets” and “The Mills”), Tanger Outlets, Craig Realty, Horizon, Macerich, and McArthur Glen. Some are still owned by independent and smaller companies, which comprise about 13M of outlet space.
As long as humans love the idea of a “bargain,” locations like this will continue to exist. Some of the reasons consumers are drawn to discount shopping are:
- The sense that they are getting more for less, which makes shoppers feel “in the know.”
- The dopamine rush they get from rewarding themselves (hence the term “retail therapy”)
- A perception that the original price is high, so any discount is considered a good thing (even if it’s not a real deal)
- An aversion to loss and FOMO
Thrifting and upcycled clothes and furniture used to be perceived as “used” and only for people who couldn’t afford new goods. But a whole new range of shoppers and brands has emerged. Sustainability is one of the drivers that has led to the opening of several new brands that specialize in upcycled merchandise. They include:
- Uptown Cheapskate
- Plato’s Closet
- Buffalo Exchange
- Crossroads Trading Co.
- Style Encore (owned by the same parent as Plato’s Closet)
- Clothes Mentor
Plus, online marketplaces like ThredUP, Poshmark, Depop, and Mercari give bargain-seekers an opportunity to score their favorite fashion brand without leaving their couches or desks.
Major MULO brands sometimes get into the upcycling game too. REI, Patagonia, and Urban Outfitters all have locations where consumers can trade in or repair used goods.
Although how and where we find deals, the discount store is here to stay in the phygital (brick and mortar meets digital) world. No AI-powered search will ever replace that dopamine rush many shoppers have when they find that original Chanel suit hanging on a back rack in a store.
For more insights into the retail future, please join us at Street Fight LIVE 2025 on September 30th.
