For many people, the dollar store is nothing short of a godsend. Whether it is basic household items, food, clothing, cleaning supplies, gift and party supplies, pet supplies, or health and beauty products you're looking for, you can count on finding it at your local dollar store for one buck. Who could ask for a deal better than that!
Dollar stores have been sprouting up all over North America. Although many of the larger ones have been operating since the late 1930's, thousands of entrepreneurs still continue to jump on the dollar store phenomenon. In 2005, it was predicted that 8000 new dollar stores would open in the U.S. by the year 2010.
The dollar store industry in the United States is a multi-billion dollar industry. In 2005, the recorded dollar store sales were just over 27 billion dollars. Over 22 billion dollars of these sales were enjoyed by the top five major chains (Dollar General, Family Dollar, Dollar Tree, Fred's, and 99 Cents Only).
As for the people who shop here, it was reported in 2006 that 65 percent of American households were shopping at dollar stores, a jump from 55 percent in 2000. It is expected that this number will increase now that this retail phenomenon is no longer a shopping spot for low to middle income families. Families with earnings above $70,000 are now among the fastest growing dollar store frequenters in the United States.
So what is it about the dollar store that makes it so attractive? Savings, of course! Why go to Wal-Mart and spend $5 on gift wrap that will end up in the garbage when you can spend a dollar at the dollar store? Why spend $10 on a garbage can when you can buy one for a buck at the dollar store? Why spend $1 on a package of gum at your local grocery store when you can spend $1 to get three packages at the dollar store. I think you get my point.
I know that many consumers do believe in quality over quantity. I agree on that philosophy for many products as well. I wouldn't dare buy cosmetics, like eye shadow or blush, at the dollar store in the event that poor quality resulted in a terrible break out or something of that nature. I do understand that. But for the most part, the dollar store has everything you need, and at such a low cost. And hey, if the product you purchased turns out to be unsatisfactory, it cost you a buck. You'll know better to go elsewhere for that item the next time.
Even though the dollar store is becoming more popular among the high income consumers, I love what it can do for low income and poverty stricken families. Without dollar stores these people wouldn't be able to afford to put more than one or two toys for their youngsters under the Christmas tree. Stores like Toys R Us charge a small fortune for most of their products. Even Wal-Mart's prices, while relatively reasonable, can be quite pricey for families with barely enough money to survive. For the exact same price, a family can choose to buy one or two toys at Toys R Us or Wal-Mart, or eight to ten toys at the dollar store. Now that is what I call a godsend.
I leave you with some quick dollar store facts:
- Top ten dollar store items bought in 2006 include: Candy, Paper Products, Detergents, Stationary, Wrapping Materials, Household Cleaners, Snacks, Laundry Supplies, Batteries and Flashlights, Personal Soap and Bath.
- Average household trips to the dollar store grew from 10 trips per year in 2000 to 12 trips per year
- In 2000, dollar store consumers were spending an average of $11 per visit. In 2006 it increased to an average of $13 per visit.
- Dollar stores spend nothing on marketing
- Dollar store sales are larger than the recorded music industry sales
- Founded in 1939 and with 8309 stores across 35 states, Dollar General is the oldest and leading dollar store company in the United States
- After Tyra Banks and Nicole Richie confessed to the world their love of 99 Cents Only stores, sales increased substantially
