Rise of the Discount Store
May 12, 2009
Miller Zell’s January survey of shopper behavior found that 51% of shoppers said they were trading down from premium to discount grocery due to the economy. 45% were trading down from premium mass merchandisers to value mass merchandisers. This adjustment to new budget constraints is working in favor of discount retailers like Family Dollar, Dollar Store, T.J. Maxx and Marshall’s.Kenneth Hain at BrandWeek reports that “high- and middle-income shoppers are increasingly turning to dollar stores.” This, according to Nielsen Co. research presented at the Nielsen 360 Consumer conference, is a result of rising food and lifestyle costs. Jeff Gregori, vice president of retail services at Nielsen said in a statement, “Today dollar stores are delivering more consistent selection and value.”Echoing the same sentiment, Retailwire reports that T.J. Maxx and Marshall’s teamed up in the “Re-Think Retail” campaign. Laura McDowell, spokesperson for T.J. Maxx and Marshall’s said, “We created this campaign with the intention of rallying consumers across the country to spread the word that you don’t have to pay a lot for great quality.”The economic slump has earned a new crop of shoppers for the discount retailers however, as articulated by John Ryan at Retail Week, “Cheap products needn’t mean cheap-looking stores.” He sites Primark UK as a discount retailer who has successfully integrated into middle market shopping centers. T.J. Maxx seems to be on the right track by launching the new ad campaign at the same time that shoppers are looking for alternatives. However, they also need to overcome the issues that deterred those shoppers from visiting before and may cost them after the recovery. Many of the comments on Retailwire focused on the need to improve shoppability. Discount stores are notoriously cluttered, overwhelming, difficult to shop and low on customer service. As one reader put it, “All the advertising in the world won’t improve the experience.” Especially for the female shopper who rates the shopping experience as a prime factor in triggering a purchase. The obvious next step for dollar stores and discount retailers is to consider how to make their stores more appealing to their new customers…if they want them to stay.
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Dollar Store Services
5075 W. Diablo Dr. Ste. 200
Las Vegas, NV 89118
1-800-829-2915
FAX: 1-702-382-8454
TEL: 1-702-382-8444
Email: sales@dollarstoreservices.com
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Dollar Store Services
5075 W. Diablo Dr. Ste. 200
Las Vegas, NV 89118
1-800-829-2915
FAX: 1-702-382-8454
TEL: 1-702-382-8444
Email: sales@dollarstoreservices.com
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