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There are almost as many theories about the right store size when opening a dollar store as there are dollar store experts providing their thoughts.  One thing many agree about is the day of the very small store has gone by the wayside. In reality, it has become extremely difficult for a 1,000 square foot store to compete in the marketplace.  On the other hand, there's no requirement to feel a 20,000 square foot store is a must either.  While a store this size offers the potential for big dollar store sales and more dollar store profits than a smaller store, the start-up costs are prohibitive for most.  

While more square footage is preferred, the right rule of thumb is, do not open a store that stretches you too thin financially.  If that means all you can afford is 1,000 or 1,500 square feet, examine whether there is the potential for a reasonable profit.  If not, maybe you should look at other financial options; wait until you have the appropriate funding in the bank, or examine a different business opportunity.

It is important to do your homework upfront.  You will discover that it requires more money than you might think to start a dollar store business.  Just purchasing an adequate initial dollar-store merchandise inventory takes significant funding. You will also need a reserve to order replenishment dollar-store merchandise even before the initial products have sold out'and that's just merchandise!  There are upfront lease costs, fixtures and displays, store equipment and more.  Be sure you are adequately funding to cover all of these no matter what store size you finally open.
The good news about a larger store is the added potential dollar store sales.  You will be able to display much more dollar store merchandise to help make the added sales and added dollar store profits a reality.  Use the extra space to display a wider selection of items including hot seller and impulse items that will contribute add-on purchases.

If you find the perfect larger space, but cannot afford the inventory initially, then consider a false-wall.  Open a slightly smaller store and open up the extra space as you can afford to grow.  You have the best of both worlds.  You can open for a lower investment.  Yet, you can grow dollar store sales and dollar store profits by reinvesting. This way, you can also add fixtures and merchandise to the extra space.

When opening a dollar store, bigger is better.  Make sure, however, that you have the finances to support opening a larger store.  Get creative by starting smaller and growing if required.  Just know your potential dollar store sale levels and dollar store profits are increased in a larger store.

To your success when opening a dollar store!