Friday, September 06, 2013

Dollar stores continue to boom all over

Dollar stores have long been fixtures in rural towns, but now they are popping up in places that aren’t even towns and continuing to steal market share from larger competitors, as more consumers have turned away from big-box chains like Wal-Mart and Target and are doing their shopping at dollar stores. Paul Ziobro reports for The Wall Street Journal that stores like Dollar General and Dollar Tree have flourished, with Dollar General reporting an 11 percent increase in sales for the second quarter. Dollar Tree's shares were up 4.3 percent Wednesday and have gained more than 25 percent so far this year. There are 10,866 Dollar General Stores and 4,763 Dollar Trees. (Bloomberg photo)

"The migration of consumers down the retail ladder shows that while the economy shows signs of improvement, plenty of shoppers remain frugal and are closely watching their spending," Ziobro writes. Dollar Tree sells its items for $1 or less, while Dollar General's products sometimes cost a little bit more, but "having a broader selection of food, as well as adding tobacco products, is helping Dollar General steal share from discounters, drug stores and supermarkets. Dollar General said around two-thirds of the people who buy tobacco also buy at least one more item." (Read more) (WSJ Graphic)

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