A Dollar Store Goes a Long Way in Atlanta
By George Anderson
If you’re looking to open a dollar store, there are few better places than Atlanta, according to an Atlanta Business Journal report.
Although there is no official count list of dollar stores in the market, industry experts say the market could contain as many as 250 stores at present, and there’s still plenty
of room for more.
Arturo “Jake” Sanchez, chief executive officer of Little Bucks Inc., plans to grow from his current three 99 cents stores in the Atlanta metro market to 28 units within three
years.
Adam Bergman, a spokesperson for the Dollar Tree chain, said Atlanta is representative of the opportunities for the dollar store format in other markets. “There is a tremendous
amount of growth to be had as we march across the country and fill in the existing market. Georgia is a good example of that.”
Mr. Bergman sees large chain’s such as his being the channel’s growth drivers. “Size is a competitive advantage in this business. The bigger you are, the easier it is to secure
direct relations with vendors and cut out the middleman. We can go directly to Procter & Gamble or Hershey — pick your favorite vendor. That’s not to say that you can’t operate
a profitable company as a mom and pop.”
Moderator’s Comment: What is your assessment of the dollar store channel’s opportunities for growth? Where do you see the biggest threat to continued
growth in the channel?
His company may not be the size of a Dollar Tree or other large chains, but that hasn’t stopped Little Buck’s Sanchez from thinking Atlanta should be his.
“Part of our growth plan is market domination. We feel the quicker we can get our stores open, the harder it will be for competitors to come in and take our market. After all,
we’re based here.” [George
Anderson – Moderator]