Is the Dollar Store the New Convenience Store?
Studies show why dollar stores have grown in popularity. Experts discuss how retailers can continue this trend.
Dollar Store Economy
Recent studies have been bringing light to the emergence of the dollar store as a true competitor to traditional discount retailers like Wal-Mart. A piece in the New York Times claimed that we are in a dollar store economy, and some of the studies show that it may be more than the economy driving the popularity of dollar store. A large and increasing portion of dollar store shoppers include the middle class, at about 22 percent in the $70,000 and up income range according to the article.
Meanwhile some dollar stores are expanding their selection to include higher quality items and more perishables, allowing shoppers to skip the convenience store altogether, this according to a report by News Channel 5, an ABC affiliate.
Experts from Dollar Store Services, a major developer of dollar stores, believe that the trend of more discount retail shoppers switching to local dollar stores will continue, and that the dollar stores that follow a business plan which includes updated and higher quality interiors along with better products can count on their share of the retail market continuing to gain ground even as the economy improves in the future. When asked what some of their independently owned dollar stores have done in order to become more successful Windy People, Wholesale Manager at Dollar Store Services replied; “Providing Value, Variety, and New Merchandise are the keys to our merchandise program. We provide Value thru the hand selection of every item and the lowest negotiated prices available in the industry.” The conclusion from the experts was that if consumers are able to get equivalent quality for less money, there is no reason dollar stores will not continue to grow for the foreseeable future.
Discount Retail Store Services is a business development company helping entrepreneurs start a business by covering all of the core tasks including site location, lease negotiation, financing, build-out, business training, new store oversight, training, and ongoing wholesale support and marketing support. They specialize in six business models including dollar stores, clothing stores, teen stores, party stores, mail box stores, and fitness centers. Find out about upcoming news on Facebook.