Buckstore vs. Dollar Store Services - Comparison Study

http://www.dollarstoreservices.com - www.youtube.com/dollarstoreservices

The dollar store industry is booming and dollar stores are popping up all over the country. The struggling economy has resulted in many Americans looking to get more value from their reduced family budgets and they are shopping at dollar stores.

Entrepreneurs hoping to capitalize on this trend invariably all begin with the same question; “How do I open my own dollar store?”

First, the experts all agree that the “do it yourself” approach is a recipe for disaster. In fact, most “do it yourself” dollar stores go out of business within the first year. This may appear to be the least expensive route, but in most cases, the end product is a low quality store with poor design, fixtures and products that aren’t marketable at any price point.

Entrepreneurs who are serious about starting their own dollar store will quickly find a few companies on the internet that claim to have all the right answers. The purpose of this comparison study is to ask the important questions, review the options and find the best answer for entrepreneurs looking to join this exploding industry.

We are going to directly compare and contrast Dollar Store Services against Buckstore Inc., a small dollar store development company located in Miami Lakes, FL.

Here at the corporate headquarters for Dollar Store Services we will have the chance to talk with some of the dollar store industry's most influential people. We will compare and contrast Dollar Store Services and Buckstore Inc. in virtually every category. By the end of this comparison you will be able to gauge for yourself which company is the most comprehensive and cost-effective solution to get you into your own dollar store business.

As far as company size and capability how does Dollar Store Services stack up against the competition, specifically Buckstore Inc.?

Dollar Store Services has 75 employees engaged in every aspect of store development inside a 22,000 square foot facility in Las Vegas, NV. The staff has over 200 years of combined retail experience.

Buckstore Inc. has 3 full-time employees that occupy a small suite in a small office complex.

COMPARE FINANCING:
In today’s financial marketplace most first time business owners are forced to leave their dreams on a loan officers desk and walk away for various reasons like; low credit scores, lack of enough liquid capital, no business plan, and others. Full service business development companies such as Dollar Store Services offer complete financing assistance services including free credit repair. Over the last 12 months the Dollar Store Services finance department has helped their clients acquire over $14 Million in funding which is quite impressive considering the economy. All this is done under the leadership of Steve Grammer, director of finance for the company. Please see the entire video above or you can simply watch the financing section of the video by clicking here.

COMPARE REAL ESTATE SERVICES: Once your dollar store is funded, the next major hurdles are acquiring the right store location and negotiating the best lease terms. Dollar Store Service’s Real Estate Department headed by Real Estate Director Jim Sanford, takes all the guess work out of finding the right location and negotiating the best terms on the customers lease agreement. Please see the entire video above or you can simply watch the real estate section of the video by clicking here.

COMPARE TRAINING: For those stores that get financed and secure a great location the next step for the store owner is training. Some dollar store operators have vast experience in retail where others have never even worked at a retail store before. No matter what an owner’s knowledge level is before going into business they will need some kind of training to understand the industry, trends, wholesale merchandising and the basics of opening and closing a dollar store. Kari Bourn is the Store Grand Opening supervisor and dollar store trainer at Dollar Store Services. Please see the entire video above or you can simply watch the training services section of the video by clicking here.

COMPARE WHOLESALE MERCHANDISE SYSTEMS: Having the right mix of merchandise in a dollar store is critical to its success. Dollar store services’ personalized approach to merchandising makes it not only more appealing to store owners, but much more profitable and effective than the approach Buckstore Inc. takes with websites and catalogs.

Dollar Store Services' merchandising services start with monthly trips to a network of 75 suppliers where merchandise is hand selected and the prices are negotiated right there. Additional savings include savings on freight, smaller inner packs allowing for more variety keeping the cost of goods down to 54 cents. Catalogs and websites that Buckstore uses have an average cost per good that is more like .65 cents. That becomes a huge difference at the end of the year that can reach tens of thousands of dollars.

Dollar Store Services has established long relationships with every top dollar store supplier, these relationships keep our cost per good lower than even some of the large corporate dollar store chains. WATCH THIS VIDEO TO LEARN MORE ABOUT THE RELATIONSHIP DOLLAR STORE SERVICES HAS WITH THE LARGE DOLLAR STORE SUPPLIERS.

Please see the entire video above or you can simply watch the merchandising services section of the video by clicking here.

COMPARE BUILD-OUT SERVICES (OPERATIONS): Included in the dollar store services package is the 100% complete build-out of the dollar store including all interior and exterior signage along with special seasonal signage that can be reused every year.

Dollar Store Services builds on average 200-240 retail stores every year which is incredible on its own. A lot goes into building a dollar store and Dollar Store Services handles every single detail for the store owner. Employing a check list of 75 critical points that must first be covered to open a store. With the Dollar Store Services approach the store owner doesn't have to lift a finger until they receive the keys to their dollar store which is a major difference between Dollar Store Services and Buckstore.

With Buckstore’s approach the owner must receive all fixtures and merchandise before their build out person builds anything. This is especially problematic for the store owner as they are then responsible for unloading one or even two semi trucks full of merchandise and fixtures themselves. Because the store owner is not experienced at professionally building out stores or unloading trucks there is a heightened chance of breaking fixtures, damaging products, or unloading the trucks in the wrong order causing a more difficult build-out experience.

Dollar Store Services tracks and makes certain that the truck is on time, they unload the truck when it arrives and they assemble every store fixture, hang all signage, and unpack and stock all the merchandise in the store. When the store has been completed the build-out supervisor will then completely review all store operations with the owner ensuring that when they open the store that they are totally prepared for their first customers.

The other factor that sets Dollar Store Services apart from the competition, especially Buckstore Inc is speed and efficiency. Dollar Store Services build-out-supervisors and their crew will usually begin operations on a Saturday and the store is ready to open for business in only 5-6 days.

Buckstore says on their website that they send a “Store owner” to build the store out. Is that comparable to the Build-Out-Supervisor That Dollar Store Services sends?

The easy answer to that question is "No"

Dollar Store Services does not contract out critical operations work like Buckstore does. Each of Dollar Store Services' 6 build-out supervisors are all full time in-house employees. Each Build-Out supervisor builds an average of 40 stores every year for Dollar Store Services' clients.

The Buckstore approach is entirely inconsistent and runs the risk of a training the new store owner with bad habits or practices. Having a previous store owner build a store and train the owner is inefficient and can be harmful to the business.

At Dollar Store Services, Build-out supervisors follow the training system that has been developed over the last 20 years when they perform the training review with the owner. Each owner is trained in precisely the same way which gives them the best chance for success.

Please see the entire video above or you can simply watch the build-out and operations services section of the video by clicking here.

Financing Assistance, Real Estate Services, Comprehensive Training, Complete Store Build-Out, Merchandising, Support and last but not least, Gross Profits. Dollar Store Services outperforms the competition at every level making the decision to go with Dollar Store Services an easy one.

We hope you benefited from this comparison study and should you have any additional questions about the facts in the study or other information about Dollar Store Services please call (800) 829-2915 or stop by our office in person, we look forward to the opportunity of speaking with you personally!

Dollar Store Services
5075 West Diablo Drive
Suite 202
Las Vegas, NV 89118

Top 10 Reasons to Start a Business in a Recession

More publicity. Less competition. Talent waiting to be scooped up. Here's why starting in a recessed economy may give your business a better shot.
By Brad Sugars | February 25, 2009

Do you have one good reason to start your business right now?
How about 10?

Regardless of what people around you (including the media) may say, right now is the best time to get into business. Just go back and look at the economic slowdowns throughout history. Most recessions in the post-World War II era last an average of 10 months, followed by growth cycles that last an average of 50 months.
What this means for the startup is there's no better time than right now to get going and start pursuing your business dreams--in anticipation of the next period of growth.

So with a nod to David Letterman, here are my top 10 reasons you should start your business now--despite the current downturn:

1. Everything is cheaper.
Let's face it: There is great value right now in this and in world markets. This is the right time for fantastic deals in virtually every category, from land and equipment to commercial office space, personnel and labor. As asset prices have been knocked down, there is no better time to get into the real estate or financial markets, or even heavy equipment and construction. Some people have waited years to find value in these markets--and now that time has come.

2. You can hire more and better-qualified people.
In an era when even Microsoft is laying off, you can find great resources at affordable rates. Thinking about getting your high-tech startup off the ground? There are plenty of engineers waiting to be hired. Thinking about forming a professional services firm? There are many accountants and attorneys looking for their next opportunity.

3. People are looking to change suppliers.
From a cost perspective, everything is on the table for most companies. Even if your prices are higher, if you can come in with greater value, you have a good chance at winning new business. You also have the advantage of being the new kid on the block when it comes to pitching your products and services. Many companies are desperate to find new partnerships with new companies that have a different, better or more innovative way of delivering those products and services.

4. Ownership equals tax incentives.
Business ownership offers a variety of tax benefits that aren't available to employees. While taxes should never be the sole reason to go into business for yourself, it should be one reason to add to you "benefits of business ownership" list.

5. Family and friends don't want to (or can't) invest more money into the stock or real estate markets.
That means they may be willing to finance a portion of your new venture, or the expansion of an enterprise that has proven itself over time. The main benefit is that they know you and have a relationship with you--and if you have a solid business plan that delivers real numbers, your chances of raising the capital you need increase exponentially.

6. Suppliers are giving better credit.
Because the credit markets have virtually shut down, the B2B credit flows are keeping money circulating out of sheer necessity. That means a bullish outlook for companies looking for good terms on stock and/or inventories. The main advantage is that all parties have more incentive than ever for finding true win-win situations that allow for cash and stock flow. When everyone is looking to survive, great deals can be had.

7. You can get good PR by showing you are going against the trend.
The media loves aberrations, and if you are optimistic by expanding or getting into business now, you would be in that category. That means you can generate some great PR by demonstrating your "alternative" view of the market.

8. You can buy everything you need at auction.
In addition to everything being less expensive, you can find great deals at auctions, especially in terms of any large equipment and office furnishings. Auctions are also a great place to find hardly used or "gently" used restaurant and bar supplies at great prices. These days, you may even be able to get deals on fleets of vehicles and trucks for a delivery service or hauling or construction company.

9. You can find great "low money" or "no money" down deals.
This is simply being aware of good opportunities others have buggered up, and finding deals where you could get an entire business simply by taking over a lease (along with all the equipment). Many business owners want out at any cost, meaning you can negotiate great win-win deals that allow the current owners an escape while giving you an opportunity to turn around what could be, if run right, a very viable business.

And finally . . .

10. You've lost your job, and you have to do something.
Sometimes, the best business decision is the one you are forced into, and the incentive (as well as need) for income is often enough to push those previously "on the fence" to strike out on their own. There's nothing wrong with being in this position; it simply means there is greater urgency to do something that will start to generate income as quickly as possible.
There you have it: my top 10 reasons to start your business in a recession. After all, the odds are on your side that the expansion will be many times more robust than the present slowdown.
There's no better time to start than the present, especially if people around you are more comfortable with their own list of reasons why they shouldn't start pursuing their own business dreams right now. It only means you'll be facing a lot less competition.

Dollar Store Services has targeted 200 NEW store openings this year! There has never been a better time than right now to get into the Dollar Store business - remember; our store packages are 100% turn-key including:
• 8 weeks of Training
• Full buildout
• Supplier network with savings of 20-25%
• Finance, Site & Leasing assistance
• NEVER pay franchise fees or royalties
• Our new funding program can assist in getting your store open -often interest free!
• Landlords are dealing right now!
• Put North America's Largest Dollar Store Developer to work for you!
• 100% Turnkey
• Good Locations Available at Below Market Rates in all AREAS!
Call me today for further information 1-800-518-3064 X167 or visit us on the web at www.dollarstoreservices.com.

Dollar Store in your Country

We open stores in any country in the world, without exception.

Dollar Store Services is the largest dollar store developer in the United States. We have opened over 1,800 stores for entrepreneurs like yourself. For stores located in the USA we offer a complete turnkey program including all fixtures, merchandise, equipment, training and long time support.

For stores opened internationally, we understand that it is most effective for the store owner to purchase certain equipment and supplies locally. For that reason we offer a customized program and provide only the key products and services you desire

Dollar Store Merchandise

The Ultimate Competitive Edge

Do you want to own a fun and profitable Dollar Store? Who wouldn’t? Dollar Stores are exploding in today’s economy! More and more and more people of all income levels are shopping at Dollar Stores in order to find good values at low prices. According to recent Nielson Studies, “Over 50% of all US Households are frequently shopping at Dollar Stores.” The fact is, the moment you open your very own Dollar Store you’ll experience immediate customers. The key is to keep them coming back. With over fifteen years of experience developing Dollar Stores, worldwide, we at Dollar Store Services know that successful merchandising drives repeat business and word-of-mouth advertising. Without a doubt merchandising is the ultimate competitive edge in the Dollar Store business.

Value:

First of all, your Dollar Store must become associated with quality and value. As customers walk up and down the isles of your store evaluating your merchandise they will be saying to themselves, “Wow! I can’t believe that’s just a dollar.” You see, when a shopper sees a product that they want, and that product is only one dollar…bingo, a business transaction will occur. Here’s the key, you have to show your customers the value. Do you remember Tom Cruz in the hit movie, “Jerry MacGuire” shouting the famous line, “Show me the money!” Think of your customers shouting, “Show me the value!” Your customers can’t wait to pay you a dollar for a good product. Give them the opportunity and they will show you the money over and over again.

Selling high quality merchandise for just a dollar and at the same time achieving a strong profit margin is no easy task. One of the most costly mistakes new Dollar Store Owners make is ordering wholesale products from catalogs and websites sight unseen. When you order hundreds of items for the price of pennies and you don’t personally inspect the merchandise, then you are playing Russian Rolette with your business. You absolutely must personally inspect the value of the merchandise before you buy it. If you don’t then you will end up with junk and ultimately repel shoppers from shopping at your store.


Imagine that you are gearing up for a big shopping weekend and you purchase $3,000 of wholesale merchandise. That’s around six thousand items. The trucks arrive with your shipments and as you begin to shelve your merchandise you notice that the products look nothing like they did in the catalog. The products are light weight, smaller than normal, faded coloring, and the packaging is falling apart as you begin to display the items. What are you going to do? Most importantly, what are your customers going to think? Remember, customers aren’t looking for cheap. They are looking for value. If you fail to deliver that expectation, then you will not succeed.

Good news! Dollar Store Services offers a complete turnkey business package that includes a comprehensive merchandising system. Our store owners have access to our exclusive supplier network. We have been developing win-win relationships with our suppliers for over fifteen years. Our success is really quite simple…we do something that no one else does. We personally visit with our suppliers each month and hand-select the merchandise. Every item is evaluated for aesthetics, feel, weight, color, smell, overall quality, and packaging. If the item does not meet our high standards, then our store owners will never know that it exists. Every week we provide our store owners with a working list of all the items that have been pre-approved. Our store owners never have to worry about the quality of their merchandise. And they don’t have to invest the time or the money necessary to schedule and travel and meet with each supplier.

Not only are we able to insure high quality merchandise we are also able to achieve the lowest wholesale prices in the industry. After all, the best time to negotiate the price of a product is while you are holding it in your hand. The fact that we represent thousands of stores worldwide doesn’t hurt either. We know that on the average we are able to save our clients 20% on wholesale prices. Let’s take a look at what this can mean to your business over time. If a small store were to purchase $300,000 worth of wholesale merchandise over the course of a year, then a 20% savings would equal $60,000 for the year. That’s an additional $60,000 in your pocket simply because you order merchandise through the Dollar Store Services supplier network. If you were to remain in business for ten years you would save nearly one million dollars. Like our President and Founder, James Wichert always says, “every million helps.”


Value is the cornerstone for a successful Dollar Store. Outstanding products are becoming more and more available as manufacturers and suppliers around the world now realize that supplying Dollar Stores with quality merchandise can be a lucrative endeavor. The fact is distinguishing the good products from the bad is an ongoing mission for all retail businesses. At Dollar Store Services our goal is to provide our store owners with the best quality merchandise at the lowest wholesale prices. Our commitment to realize this goal month after month and year after year is unparalleled in the industry.

Variety:

The next critical component to successful Dollar Store Merchandising is variety. A wide variety of product categories as well as a dynamic selection within each category is the key to gaining profits and market share. A large variety of merchandise provides 3 powerful marketing advantages:

1. Variety keeps customers shopping in your store for longer periods of time and increases your average revenue per transaction.
2. Variety allows you to quickly turnover inventory and make merchandising adjustments quickly.
3. Variety distinguishes you from the competition and builds loyal and repeat customers.

How do you achieve a large variety of quality merchandise? First of all, you must have access to a multitude of reputable suppliers. When you have high quality standards as we do at Dollar Store Services you simply cannot properly merchandise a store with just a handful of suppliers. From hardware to flatware, aspirins to aprons, birthdays to holidays, beach balls to ball point pens, and gum drops to flip-flops the possibilities are just too vast. With over 70 suppliers in our network we are able to ensure that our store owners have access to the quality and variety that they need to compete and win in today’s retail marketplace.

Secondly, the ability to display a large variety of merchandise requires that you purchase wholesale merchandise in low quantity orders. One of the biggest challenges that small business owners face today is that their lack of buying power does not allow them to offer competitive prices and maintain substantial profit margins. While most small business owners are forced to purchase large quantities in order to reduce per unit costs; our store owners, on the other hand, are able to purchase wholesale items in small quantity packages.

Because of our long-standing reputation, our commitment to meet with our suppliers personally, and our worldwide buying power we are able to negotiate low wholesale rates on small quantity shipments. Small quantity shipments are critical in maximizing your shelf space. As an independent owner of a local dollar store you are not COSCO or Wal-Mart. You cannot have 500 cases of bottled water on your sales floor. You simply don’t have the space. Your store space needs to be optimized with a large variety of merchandise that is made available in small quantities. The fact is if you do not have the buying power to negotiate for small quantity shipments, then you cannot display the variety of merchandise that you need in order to compete in the marketplace.

New:

In addition to value and variety we also know that successful Dollar Store marketing requires a consistent flow of NEW merchandise. Your Dollar Store will always provide a stable supply of snack foods, household items, and health and beauty products, but the remainder of your store will be dedicated to showcasing a unique mixture of brand new products.

Your dollar store will resemble a box of chocolates…like Forest Gump’s Momma would say, “you never know what you are going to get.” Consistently introducing NEW products into your store keeps shoppers coming back, week after week, month after month, and year after year.

In order to keep bringing NEW merchandise into your store you have to have access to a multitude of suppliers…you have to consistently visit with suppliers and see for yourself what’s new and exciting. And the fact is, if you don’t have access to a merchandising system that provides all of these resources, then you cannot properly merchandise your store and succeed long-term.

Here at Dollar Store Services our Merchandising and Management Support Systems operate at the highest level. Not only do our store owners save thousands of dollars every month in wholesale discounts…they also have access to over 70 suppliers nationwide. Our suppliers are dedicated to earn our business, not only do they allow us to receive small quantity shipments, they also set aside top-selling merchandise exclusively for our store owners during peak shopping seasons and weekends.

Our mission at Dollar Store Services is not only to help you open a Dollar Store…our mission is to help you own a profitable and fun Dollar Store for as long as you desire. You will find that Merchandising is the ultimate competitive edge in the Dollar Store business and that Discount Retail Store Services is the ultimate business development partner.

By
Jon Jones

Tackle the Fear of Owning a Business

According to peak performance psychologists we spend most of our time experiencing the emotions of anxiety and stress while anticipating fear full events that never actually happen. Fear has been described as F.E.A.R. False Evidence Appearing Real. Does this acronym apply to your life? Think back on your life for a moment. Can you remember hesitating, fretting, anguishing, and avoiding challenges because of your fear of what might happen? Imagine looking back on a lifetime full of stress and anxiety only to discover that your fears were imaginary. In the final days of your life, how disappointed would you be knowing that you allowed fear to determine the extent of your achievements and the depth of your experience here on earth?

Isn’t it true that some of your proudest moments in life came from those moments when you took action in the face of fear? As we approach a lofty goal, face the unknown, or take on a challenge we are almost always met with a degree of fear. And when we take action in the face of fear, and the course of action is over, isn’t it true that we almost always say to ourselves, “It wasn’t as bad as I thought.” You see, by exaggerating the size of our obstacles we simultaneously justify our excuses, and we give ourselves permission to remain in our comfort zone.

Let me ask you this. What kind of rewards can you expect if you remain in your comfort Zone? More importantly, what kind of a person will you become if you remain in your comfort zone? At this point in our lives you and I have learned that the greatest rewards in life remain outside of our comfort zone. So, if you find that transitioning from employee to business owner is currently out of your comfort zone, then I say, “Fantastic! That’s exactly the way it’s supposed to be.”

Taking action in the face of fear and venturing beyond our comfort zone is where we find greater rewards and a glimpse of our unlimited potential. Furthermore, when we tackle fear head on we almost always discover that the obstacle wasn’t as powerful as we thought. I remember one day while discussing these ideas, a client of mine asked me the following: “don’t you think that sometimes the opposite is true, that sometimes obstacles are greater than we anticipated?” Absolutely. And those are the moments, I explained, that we have the opportunity to discover an even greater truth…that WE are more powerful than we think. As human beings we have a tendency to enlarge our obstacles and reduce our power, and as we do we give ourselves permission to shrink and pursue smaller dreams and goals. Don’t avoid obstacles, and don’t make them bigger than they really are. Take action in the face of fear and allow the obstacles to make you stronger.

I submit to you that owning a business has obstacles, and that most of the time those obstacles will appear larger than they really are. And on occasion you will run up against a daunting challenge that meets you unprepared. You will be required to walk in faith and step way beyond your comfort zone. Then, you will find an inner strength that will carry you through. You will find it because as the owner of the business you will have no choice. And as you persevere and find a way to make things work you will become even stronger, wiser, and a more powerful leader. When you look back on this challenge and the person you have become you will say to yourself, “I wouldn’t have wanted it any other way.”

In his masterpiece journal on human achievement, “The Law of Success,” Napolean Hill explains that a very successful businessman was asked to what he attributed his great accomplishments in life, and the successful man replied, “all of the obstacles along the way.”

Many people avoid business ownership because of the inherent obstacles and uncertainty. In order to tackle the fear of owning a business I recommend that you reverse this logic. The obstacles, the challenges, and the uncertainty that come with owning a business are not intelligent reasons to avoid owning a business, rather, they are among the most compelling reasons why one ought to pursue business ownership.

Live Development Telephone Seminar

How To Succeed in The Dollar STore Business

“The economic downturn has been a boom to dollar stores.”
Nielsen Company

“Nearly half of all U.S. households shop at dollar stores each month”
Retail Forward; LA Times May 13, 2009

Live Free Dollar STore Development Telephone Seminar

We are Dollar Store Services, the largest developer of independently owned Dollar stores in North America. Over 2,000 business owners, just like you, have taken advantage of our industry experience, turnkey business packages, and unparalleled business resources. Join us for a FREE business education teleconference seminar about how to succeed at one of the nation’s most exciting business opportunities.


Company: Dollar Store Services

Topic: How to Succeed in the Dollar Store Business

When: Saturday July 25th 12noon to 1:00pm (Pacific Time)

(RSVP by Email & Receive Call-In Instructions)

Presenter: Jon Derek Jones, Director Business Development

How To Succeed in the Dollar Store Business

How to tackle the fear of owning a business

Dollar Stores…the right business at the right time.

The Three most costly mistakes to avoid!

The Secrets to Successful Dollar Store Merchandising.

7 Steps to Opening a Successful Dollar Store

Please RSVP by Email to receive call-in information

Nielsen: High and Middle Income Shoppers Spending More in Dollar Stores in Uncertain Economy

ORLANDO, Fl., May 12, 2009 – The economic downturn has been a boon to dollar stores, which attracted increased consumer spending in 2008, including spending among high and middle income shoppers, according to The Nielsen Company. Nielsen’s analysis of consumer shopping habits shows consumers at all income levels shopping more at dollar stores, with high income shoppers spending 18 percent more at dollar stores in the second half of 2008 compared to the prior year. Dollar stores are outpacing major consumer packaged goods (CPG) channels among both low and high income shoppers. The analysis was presented today at Nielsen’s Consumer 360 conference, the CPG industry’s premier educational and networking event, attended by more than 700 industry professionals. Dollar stores are small to mid-size stores that sell an assortment of CPG products, ranging from household cleaning products to food, usually at low prices. Originally taking their name from the fact that most products were priced at or below one dollar, today’s dollar stores offer products at a variety of price ranges, with an average of only 23 percent of products at or below the one dollar price point. Even so, the continued focus on comparatively low prices and value is drawing shoppers from all income levels. According to Nielsen, an estimated 65 million U.S. consumers shopped at dollar stores in 2008.“The troubled economy and rising costs in healthcare, education, and food have caused everyone -- even those with high incomes -- to rethink where they purchase basic household goods,” said Jeff Gregori, vice president, Retail Services, The Nielsen Company. “Five years ago, shoppers weren’t sure what they would find in a dollar store. Today, dollar stores are delivering more consistent selection and value, and consumers are shopping dollar stores more regularly to fulfill their basic CPG needs.”The Typical Dollar Store CustomerDespite the increase in spending among high and middle income shoppers, low income shoppers are still the primary dollar store customer. According to Nielsen’s research, 45 percent of dollar store sales are from low annual household incomes (below $30K), 47 percent from middle incomes (between $30K and $99.9K), and only eight percent from high incomes (greater than $100K).The most loyal dollar store customers tend to have low incomes and live in small towns and rural areas or in urban centers. Senior couples, senior singles (particularly widows) and younger families with children are more likely to shop in dollar stores only occasionally, relying on other retail channels to meet the rest of their household needs.A Destination for Everyday Goods
In terms of products, dollar stores have become a regular shopping destination for everyday household staples. Among those who regularly shop at dollar stores, the most commonly purchased household items include paper goods, such as napkins and paper towels, detergent, trash bags, and cleaning and laundry supplies. The most common edible items are candy, snacks and cookies. “With more shoppers having positive experiences at dollar stores, there is a significant opportunity for dollar stores and CPG manufacturers to build loyalty and expand into new product categories, such as food and beverages and select health and beauty care,” said Gregori. “There is also a potential growth opportunity in exploring dollar store private label offerings in both edible and non-edible products. The challenge for dollar stores and CPG manufacturers is to get the product mix right to meet the needs of their traditional customers as well as new customers with higher incomes.”About The Nielsen CompanyThe Nielsen Company is a global information and media company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and business publications (Billboard, The Hollywood Reporter, and Adweek). The privately held company is active in more than 100 countries, with headquarters in New York, USA. For more information, please visit http://www.nielsen.com/.

Contact:
Dollar Store Services 1800-518-3064 X 167 keithw@storeservices.org