Why Are Dollar Stores On The Rise?

When you consider the rise of dollar stores, the numbers become staggering. Three-fourths of US residents live within five minutes of a dollar store. While the retailers across the globe shutting down at a record pace, dollar stores are adding up more stores. 

Often, dollar stores generate more sales than bigger retail stores you have heard of. This is not a story of one company doing well. Dollar discount store dominated the list of retailers with several stores opening up. 

Not just one, you can think of numerous popular stores across the US and probably a couple near your home.

But the question is, why are these stores becoming so popular? What are its growth factors? Let us check out carefully.

A Mirage Or An Oasis?

According to the Tulane University research, some 2.3 million US citizens live more than a mile from a grocery store and don’t own a car.

These are termed social deserts by social scientists and in these places getting access to groceries is a challenge. Those living in the food deserts have to invest enough time and money to get food.

Now, the problem has increased as grocery has undergone its changes. Four popular grocery chains control about 44% of the market. Also, the smaller grocery chains are just a thing of the past.

But the availability of dollar discount store, back then, could offer an easy solution. This is more when larger grocery chains have pulled out of these places and the local ones have gone under.

With the dollar stores moving in, it becomes difficult for small grocery stores to compete and not viable for chain groceries to make investments.

While many argue that discount stores solve one challenge, i.e; the access to food, it does come with shelf life. However, this issue too has been solves as more and more stores are making fresh food items available for the buyers.

Small Quantity With Low Price Tag

A sizeable percentage of the dollar store shopper base earns less than an average US citizen. About 57% of the dollar store’s customers earn less than $50,000 and 30% earn less than $25,000.

The best thing about dollar store is they thrive on lower prices. In other words, the store is for everyone who has a limited income. 

Coming to the dollar store size, these stores are spread across 7500 square feet, stocked with fewer than 10,000 products and have two or three employees on hand at any point of time. These factors contribute to a good shopping experience for the customers. 

The rise of dollar discount store has been remarkable in the last few years. As this growth is getting attention from the local residents and those with low income, you need to see what long-term impact it has. However, one thing is for sure, dollar stores do have a winning strategy.