Dollar Stores in the News Bring Attention to Customer Base

Discount store customer demographics get a closer look.

September 03, 2014

NEW YORK – The dollar store saga continues, with the latest news that Dollar General intends to persist in its $9 billion pursuit of Family Dollar, despite antitrust hurdles and Family Dollar’s preference for Dollar Tree’s $8.5 billion offer.

According to a report by Sarah Mahoney in Marketing Daily, with the economic recovery breathing new life into luxury marketing, it’s become too easy to overlook the shifting demographics among poorer consumers. Mahoney cites industry experts who point out that growth in the dollar store channel has increased because of how well the stores meet the needs of core, low-income shoppers.

At the same time, the stores have gained popularity among a new, more affluent demographic, because they can often be more convenient than trips to a typical big-box store.

But while the category is still expanding, it’s far from a sure thing, with Dollar General’s same store sales gaining only 2.1% in the last quarter.

In 2012, NACS Magazine addressed the challenge for convenience stores as dollar stores ramped up their competition for customers in the article, “Race for Space.”

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