Table of Contents
Introduction and Abbreviations
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- Introduction
- Other relevant reports
- Definition
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- “Dollar Store” means more than just $1 retail
- Channel blurring
- Consolidation and massive growth, but low same-store sales
- Merchandising mix affects the quality and nature of the shopping experience
- Mostly regional and rural/suburban
- Mostly negative consumer perceptions and attitudes
- Staple goods sell well in dollar stores
- Future: expansion of retail outlets, product diversification and increased quality of stores and products coupled with low cost
Market Drivers
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- Discretionary income
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- Figure 1: Households with discretionary income, by age of householder, 2000
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- Figure 2: Per capita personal disposable income, 1999-2003
- Demographic trends
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- Figure 3: U.S. population projections, by age groups, 2000-10
- Figure 4: U.S. population, by race and Hispanic origin, 2000-10
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- Figure 5: Graph: Black, Hispanic, and Asian shares of U.S. population, 2000-10
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- Figure 6: Number of households per income group, 2000 and 2003
- Figure 7: Graph: Share of households per income group in 2003 and change from 2000
- Channel blurring
- Numbers of stores and consolidation: size matters
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- Figure 8: Key dollar store sales, 2003 and 2004
- Figure 9: Graph: Key dollar stores, market share, 2004
- Only the largest chains can ensure a consistent basket of goods
- Low-quality work and shopping experience
- Not a core shopping destination
- Inflation
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- Figure 10: U.S Inflation between 2000 and 2005
- Recognition and response to consumer needs
- Attention design and aesthetics: a recipe for success?
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- Figure 11: Picture of shelving in 99¢ Only Store
- Competition from established retailers in other channels
Market Size and Trends
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- Figure 12: Total U.S. retail sales in dollar stores, at current and constant prices, 2000-05
- Figure 13: Graph: Total U.S. retail sales in dollar stores, at current and constant prices, 2000-05
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Market Segmentation
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- Figure 14: Dollar stores market segmentation, 2003 and 2005
- Figure 15: Graph: Dollar stores, market segment growth, 2003 and 2005
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Supply Structure
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- Introduction
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- Figure 16: Dollar store sales, by retailer, 2002 and 2004
- Indie dollar stores
- Dollar stores vs. other retail channels
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- Figure 17: Share of CPG sales by channel type, 2002 & 2004
- Dollar store retail space
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- Figure 18: Dollar store sales, numbers and square footage, top nine brands, 2004
- Dollar stores and geography
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- Figure 19: Dollar store headquarters and markets
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- Figure 20: Dollar General store map, 1984, 1995, 2005
- Figure 21: Family Dollar store map, 2004
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- Figure 22: Fred’s, Inc. store map, 2004
- Figure 23: 99¢ Only Stores store map, 2004
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- Figure 24: Duckwall store map, 2004
- Figure 25: Number of Duckwall stores, by state, 2004
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- Figure 26: ALCO store map, 2004
- Figure 27: Number of ALCO stores, by state, 2004
- Companies and brands
- Dollar General
- Family Dollar
- Big Lots
- Dollar Tree
- Fred’s, Inc.
- 99¢ Only Stores
- Tuesday Morning
- Variety Wholesalers
- Duckwall-ALCO
Advertising and Promotion
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- Introduction
- Advertising and store opening events
- In-store signage and exterior displays
- Rewards programs, contests, and circulars
Retail Distribution and Store Audit
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- Mintel store audits
- Many inconsistencies
- Brands
- Prices and featured items
- Square footage allocation
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- Figure 28: Shelf space allotment by product category in all dollar stores, November 2005
- Extreme value retailers
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- Figure 29: Shelf space allotment by product category among extreme value retailers, November 2005
- Single price retailers
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- Figure 30: Shelf space allotment by product category among single price retailers, November 2005
- Closeout retailers
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- Figure 31: Shelf space allotment by product category among closeout retailers, November 2005
- Independent dollar store retailers
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- Figure 32: Shelf space allotment by product category among independent dollar store retailers, November 2005
- Competitors and observations
- Summary
The Consumer
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- Introduction
- Frequency of visits to dollar stores
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- Figure 33: Frequency of visits to dollar stores, November 2005
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- Figure 34: Frequency of visits to dollar stores, by gender, November 2005
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- Figure 35: Frequency of visits to dollar stores, by age, November 2005
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- Figure 36: Frequency of visits to dollar stores, by household income, November 2005
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- Figure 37: Frequency of visits to dollar stores, by race/ethnicity, November 2005
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- Figure 38: Frequency of visits to dollar stores, by level of educational attainment, November 2005
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- Figure 39: Frequency of visits to dollar stores, by region, November 2005
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- Figure 40: Frequency of visits to dollar stores, by area type, November 2005
- Reasons for not shopping at dollar stores
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- Figure 41: Reasons for not shopping at dollar stores, November 2005
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- Figure 42: Reasons for not shopping at dollar stores, by age, November 2005
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- Figure 43: Reasons for not shopping at dollar stores, by household income, November 2005
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- Figure 44: Reasons for not shopping at dollar stores, by region, November 2005
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- Figure 45: Reasons for not shopping at dollar stores, by area type, November 2005
- Type of product purchases at dollar stores
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- Figure 46: Types of products purchased at dollar stores, November 2005
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- Figure 47: Types of products purchased at dollar stores, by age, November 2005
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- Figure 48: Types of products purchased at dollar stores, by household income, November 2005
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- Figure 49: Types of products purchased at dollar stores, by region, November 2005
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- Figure 50: Types of products purchased at dollar stores, by area type, November 2005
- Supplementary shopping habits of dollar store consumers
- Drug stores
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- Figure 51: Share of Dollar General and Family Dollar Store buyers who have bought from drug stores, by drug store, May 2004-May 2005
- Mass merchandisers and club stores
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- Figure 52: Share of Dollar General and Family Dollar Store buyers who have bought from Wal-Mart, Target, Costco or Meijer, by named store, May 2004-May 2005
- Supermarkets and other food stores
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- Figure 53: Share of Dollar General and Family Dollar Store buyers who have bought from supermarket/food store, by named store, May 2004-May 2005
- Convenience stores
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- Figure 54: Share of Dollar General and Family Dollar Store buyers who have bought from convenience stores, by named store, May 2004-May 2005
- Dollar General and Family Dollar consumer demographics
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- Figure 55: Have shopped at Dollar General and Family Dollar store within both the last 4 weeks and 3 months, by race/ethnicity, May 2004-May 2005
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- Figure 56: Have shopped at Dollar General and Family Dollar store within both the last 4 weeks and 3 months, by region, May 2004-May 2005
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- Figure 57: Have shopped at Dollar General and Family Dollar store within both the last 4 weeks and 3 months, by cohorts, May 2004-May 2005
- Frequency of shopping visits
- Food stores
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- Figure 58: Frequency of shopping at food stores for those who have shopped at Dollar Generals and Family Dollar, May 2004-May 2005
- Drug stores and convenience stores
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- Figure 59: Frequency of shopping at drug stores for those who have shopped at Dollar Generals and Family Dollar, May 2004-May 2005
- Race/ethnicity and dollar store retailer brand choice
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- Figure 60: Frequency of shopping at Dollar Generals and Family Dollar, by race/ethnicity, May 2004-May 2005
- Geography and dollar store retailer brand choice
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- Figure 61: Frequency shopping at Dollar Generals and Family Dollar in the last 4 weeks, by region, May 2004-May 2005
- Summary
Future and Forecast
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- Future trends
- Dollar stores: a dumping ground for low-price books?
- Mega dollar stores (dollar store markets)
- Saving money appeals to everyone
- National brands offer more existing products specifically packaged for dollar stores
- Regional tastes and distribution obstacles will continue to prevent a single national player from dominating
- Greater urban penetration
- Dollar stores will become the senior’s store of choice
- Wider, more consistent variety of goods sold, but still “treasure hunt” retail
- Tween-targeted discount stores
- Continued decline of closeout stores
- Same-store sales declines continue, marketing begins?
- Ethnically-targeted merchandise
- Market Forecast
- Dollar stores
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- Figure 62: Forecast of total U.S. retail sales in dollar stores, at current and constant prices, 2005-10
- Figure 63: Graph: Forecast of total U.S. retail sales in dollar stores, at current and constant prices, 2005-10
- Forecast factors
Appendix: Trade Associations
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- Dollar Store Expo
Appendix: Mintel store audit list of retailers
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- Figure 64: Mintel store audit list of retailers, November 2005
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Appendix: Simmons cohorts
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- Figure 65: Married couples cohorts
- Figure 66: Single women cohorts
- Figure 67: Single men cohorts
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