Anxiety over how the economy would pan out has consumers looking for alternate options to cut down their expenses. This had led to dollar stores becoming popular with consumers and “we are now awakening to a dollar store economy,” as The New York Times stated.
A dollar store is variety store or price-point retailer in retail sector selling inexpensive items, usually with a single price point for all items.
To meet this increasing demand from consumers, dollar stores have started a building campaign with Dollar General announcing its plans to build over 600 new stores, Family Dollar 300 and Dollar Store Services estimating they have already built over a thousand, a press release stated.
According to Newsnet5.com, there are more dollar stores in the country than Starbucks or McDonalds.
By adopting innovative business strategies, these stores are planning to retain their middle-income crowd, who made a beeline to these stores when the economy was in the doldrums. According to reports, the “anxiety over the economy is nearly as much of a driving force behind the emergence of the dollar store as the actual recession.”
With new additions such as offering perishables, Dollar General has managed to increase more customers, thereby increasing its sales. Dollar General told Newsnet5.com that when it added perishables, the average shopper spent 60 percent more.
Meanwhile, dollar stores have started making its presence felt in high profile shopping centers, too.
According to an article in Time, dollar stores are becoming a more accepted tenant. They “are moving into increasingly better real estate locations impacted by economy-driven vacancies. Landlords in smaller markets often lease to a predominantly local tenant mix, so adding a large, national credit tenant can reenergize a leasing effort and reassure lenders of a property’s viability.” Also, for shopping complexes with high levels of vacancies, any tenant is better than no tenant at all.