Are Dollar Sections Producing Big Bucks?

Discussion
Jul 23, 2003
George Anderson

By George Anderson


If imitation is the sincerest form of flattery, then retailers such as Dollar
General, Family Dollar and others must feel highly flattered as retailers from
A&P to Wal-Mart test dollar store sections within their traditional formats.


According to USA Today, sales at major dollar store chains was up around
four percent while department stores, mass merchandisers and supermarkets either
had sales fall-off or increase only slightly.


Howard Davidowitz, chairman, Davidowitz & Associates says there is no mystery
to the consumer acceptance of dollar stores. “Customers love extreme value,”
he said.


Moderator’s Comment: Does the rush to open dollar store
sections amount to an overreaction on the part of retailers seeking to blunt
competition?


The growth of dollar stores in recent years has been nothing
short of meteoric. Perhaps that explains why recently we’ve been finding ourselves
wondering when the dollar store bubble will burst.

[George
Anderson – Moderator
]

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