Kroger Tests Dollar Stores in Houston

Discussion
Jul 07, 2003
George Anderson

By George Anderson


The Houston Business Journal has reported Kroger is testing its new
dollar store concept in the local market.


The dollar stores are located within existing Kroger locations but are setoff
with separate entrances and signage. Kroger spokesman Gary Huddleston said the
stores carry between 10,000 and 15,000 food, clothing, greeting cards and party
supply items priced at $1 or less.


Moderator’s Comment: Will a dollar store within an
existing supermarket or other retail format cannibalize existing sales and profits?
How much impact do you expect these stores within a store to have on standalone
dollar stores?


Eric Schiffer, president of 99 Cents Only, told the Houston
Business Journal he isn’t concerned. “I think the affect it will have on
our stores will be negligible. In California, almost every grocery has a dollar
store and it hasn’t affected our sales at all.”

[George
Anderson – Moderator
]

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