Comparing Costco and Dollar General: Which Discount Retailer is a Better Investment?

Costco Wholesale Corporation and Dollar General Corporation are prominent discount retailers with differing business models. Costco operates a membership-based warehouse model with 923 warehouses globally, while Dollar General has over 20,000 stores across rural, suburban and urban areas. Costco's resilient business model, built around its membership structure, offers competitive pricing and fosters loyalty, with membership fee income rising 14% YoY in Q1 of fiscal 2026. Costco is expanding its presence through new warehouse openings and strategic investments in technology and logistics, while Dollar General focuses on everyday low prices and essential household items.