It's been clear for years that the path to success for dollar chains involved opening more and larger stores as well as expanding inventories of food and beverages. The game plan has worked as Dollar General, Family Dollar, Dollar Tree and others have helped the channel grow share of the consumables market.
When times have been hard, it's been a given that consumers would seek out the channel to stretch dollars. But, even as the economy has begun to recover, dollar stores continue to pick up share from supermarkets and mass merchandisers.
A 2011 RetailWire poll found that 57 percent believed an economic rebound would mean much bigger (10 percent) or somewhat bigger (47 percent) sales for dollar stores. Much of this was due to the position that the chains have staked out in shelf stable, refrigerated and frozen foods.
Family Dollar, the number two dollar store chain, announced earlier this week that it has hired former Delhaize America executive Tammy DeBoer as its senior vice president - food.
"Providing customers with a compelling food assortment is key to driving trips and an important initiative for Family Dollar," said Paul White, executive vice president, chief merchandising officer for the chain. "Tammy's proven track record in the food industry and her strategic leadership will help drive further enhancements to our assortment and help us increase customer loyalty as we work to continue to expand our market share."
Do you expect the competitive threat posed by dollar stores to other food retailers to increase, decrease or remain the same over the next five years?