About 50 years ago “five and dime” stores emerged selling to consumers extremely low priced everyday items and other goodies. Remember J.J. Newberry? Woolworth’s was also originally a dollar store that has considerably expanded. Today dollar stores have taken over the same extreme value niche.
And they are taking the world by storm.
This is surprising since only 15 years ago, dollar stores were still a rarity. In fact, word of mouth was literally how they gained notice.
In a recent Times & Trends: “Dollar Stores: An Industry Growth Phenomenon” report from the IRI Consumer Network extensively analyzed the aggressively growing openings in the dollar channel industry. Findings show that consumers of low to high income are enamored by dollar bargains; traveling usually at least five miles to the nearest dollar store.
Now, calm down… hold on a minute! If you think this news is discouraging or even surprising, the report announces that dollar stores haven’t saturated the world enough!
So if you’re opening up a discount store soon and see a dollar store every 5 miles – don’t let that worry you! The extreme discount channel is here to stay for good!
Just look at Target and Walmart who have introduced dollar store sections (commonly found at entrances). Customers rush and stop there to pick up a few goodies that they don’t need! Why? They are purchasing impulsively because items like garment bags, dishes, and even pet toys are just a $1.00! Almost every week there’s a guarantee there’s an abundance of new dollar items. Sounds familiar?
Yes, that’s right they’ve learned from you: the dollar and discount store retailer! So reverse the situation a bit and keep your merchandise interesting and rotating. To find out the latest or any questions contact your sales person or call (323) 319-0601 today!