Family Dollar vs Dollar General: What's the Difference?
They get confused constantly, but Family Dollar and Dollar General are separate companies (Dollar General was never part of the Dollar Tree family). Both are small-format discount stores that sell a mix of food, household goods, and seasonal items at low prices — but they differ in pricing model, store feel, and, importantly for deal hunters, how they handle clearance and penny items.
The quick version
Dollar General is the larger chain, generally leans a bit more rural, and is known among deal hunters for a fairly structured clearance markdown system (and a penny policy that, per its employee handbook, does allow penny sales — though stores apply it inconsistently). Family Dollar is now owned separately from Dollar Tree following the 2025 sale of the brand, often skews slightly more urban and apparel-heavy, and — unlike Dollar General — generally will not sell penny items.
Are they the same company?
No. Dollar General is its own company and has no corporate tie to Dollar Tree or Family Dollar. Family Dollar was owned by Dollar Tree from 2015 until 2025, when the Family Dollar brand was sold off, so the two are no longer sister brands either. The name similarity ("Dollar ___") plus the similar store format is why shoppers — and a lot of online "penny list" guides — mix them up.
Prices and store style
Neither is a true "everything's a dollar" store anymore (that's Dollar Tree's model). Both Family Dollar and Dollar General use variable pricing, with most items spanning roughly $1–$15 plus larger household and food items. Dollar General tends to carry a broader grocery and household assortment; Family Dollar often carries more apparel and home basics. Selection and remodeling vary a lot store to store for both.
Clearance and penny policies (the part deal hunters care about)
This is where the practical difference shows up. Dollar General runs a well-known staged clearance system (shoppers track its markdown percentages and "penny" items, which its handbook permits — enforcement varies by store). Family Dollar marks down clearance with colored stickers too (see our Family Dollar clearance colors guide), but it does not sell penny items — when something hits a penny it's flagged to be pulled. And Dollar Tree — the third chain people lump in — is different again: as of January 2026 it actually began selling pennies. So "does this store do pennies?" has three different answers across the three chains. Penny Tree tracks Dollar Tree and Family Dollar; for Dollar General, crowd-sourced community lists are the main resource.
FAQ
Are Family Dollar and Dollar General the same company?
No. Dollar General is a separate company with no tie to Dollar Tree or Family Dollar. Family Dollar was owned by Dollar Tree from 2015 until the brand was sold in 2025, so they are no longer sister brands either.
What's the difference between Family Dollar and Dollar General?
They're different chains. Dollar General is larger, leans more rural, carries more grocery, and allows penny items per its handbook (inconsistently). Family Dollar leans more urban and apparel-heavy and generally does not sell penny items. Both use variable pricing, not a flat $1.
Does Family Dollar or Dollar General sell penny items?
Dollar General's handbook permits penny sales (though stores apply it inconsistently). Family Dollar generally does not — penny items are flagged to be pulled. Dollar Tree, a separate chain, began selling pennies in January 2026.
Which is cheaper, Family Dollar or Dollar General?
Neither is reliably cheaper across the board; both use variable pricing and run frequent sales and clearance. The better deal depends on the specific item and each store's current markdowns.