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Dollar stores feed bargain hunters' cravings
Douglas Daily Dispatch - Douglas,AZ,USA
The explosion of dollar stores proves that an idea as simple as merchandising
items based on price alone can mean big business. ...
December 18, 2007
For many smart shoppers, the thrill of hunting down a great deal is as
satisfying as the actual savings from the purchase. The explosion of dollar
stores proves that an idea as simple as merchandising items based on price alone
can mean big business.
I know shoppers who are faithful dollar store acolytes and swear by the deals
they find on all kinds of merchandise. At the very least, the “dollar store”
name piques shoppers’ curiosity enough to get shoppers to make at least one
visit to a local dollar store to see what all the fuss is about.
Dollar stores have been around for decades. Dollar General boasts 8,000
locations in 35 states; Family Dollar, 6,400 locations in 44 states; and Dollar
Tree, 3,401 stores in 48 states. These large chains are as organized as any
retailer, with online weekly ads, Web sites and circulars in the newspaper or
mail.
I have been to several dollar stores and agree that there are some good
bargains. When it comes to groceries, the selection at a typical dollar store is
fairly limited, offering one or two aisles of nonperishable items such as
condiments, snacks and canned goods. Some dollar stores have complete produce
and refrigerated sections, but they’re not as common in a standard dollar-store
format. When I shopped at one location that had a produce section, I found that
the prices were lower than my supermarket’s, but the produce did not look as
fresh.
For shoppers who do not like through go to the trouble to time store sales with
grocery coupons, dollar stores can be good sources for cleaning products, snack
foods, basic paper goods (such as paper plates and cups) and personal-care
products. I would not recommend buying toothpaste or any oral hygiene items
produced in another country, where the screening standards may not be as
stringent as domestically made items. However, many dollar stores get their
products directly from the U.S. manufacturer, so be sure to read the label.
I think the best bargains at the dollar store are outside of the grocery aisle —
such as greeting cards (at two for $1.00 in many cases), party supplies,
seasonal decorations, books, stationery and children’s party favors and toys. My
favorite place to buy stocking stuffers for Christmas is the dollar store — I
can find something for everyone at a price I like! Advertisement
The dollar-store-pricing concept has spilled over to traditional supermarkets.
Many grocery retailers have copied the simple, effective strategy of
merchandising items at the dollar price point. Grocery stores have “dollar days”
promotions or signs that tout “10 for $10” sales. Even if the items typically
sold for about one dollar before the promotion, shoppers get the impression that
they should stock up on these super bargains. My store promotes “10 for $10”
sales with the slogan “Mix and Match” which makes shoppers think they have to
buy 10 items to get the $1 price per item. The store ad will feature dozens of
items included in the promotion, giving shoppers the flexibility to buy several
different items to get to their 10-item quota. Of course, most stores charge $1
per item regardless of the number of qualifying items purchased. If a minimum
purchase is required, stores will clearly state those terms. If you aren’t sure,
be sure to ask a store associate so you don’t blow your budget getting more
bargains than you need.
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