Photo: Dollar General
Going back even before the Great Recession, there were periodic reports about the changing face of consumers shopping in dollar stores. Anecdotal accounts of shoppers driving their Mercedes to dollar stores to save a few bucks have made for good copy over the years. There have also been studies showing how “affluents” shop dollar stores, including new research showing how upwardly mobile Millennials are affecting the performance of the top chains in the channel.
NPD’s Checkout Tracking, according to a report by Reuters, has found that 29 percent of Millennials who shopped at Dollar General, Dollar Tree and Family Dollar were from households earning over $100,000 a year. By tracking sales receipts, NPD has estimated that shoppers in this group represent about 25 percent of total sales made by the three chains.
Dollar stores have certainly made the most of the retail times, both good and bad, of late. While the Commerce Department has reported a rebound in retail sales the past couple of months, that improvement has not been universal. Dollar General reported a 2.2 percent gain in same-store sales in the most recent quarter as both its traffic count and average transaction size improved. Earlier this year, the chain announced plans to add roughly 1,900 new stores over the next two years to bring its total count to more than 14,000.
Dollar Tree, which completed its acquisition of Family Dollar last July, also saw its same-store numbers improve 2.2 percent.
- Guess who’s shopping at dollar stores? Well-to-do millennials – Reuters
- Dollar Stores Shine in Retail Tumult – The Wall Street Journal (tiered sub.)
- Dollar General Reports Results for the First Quarter Fiscal 2016 – Dollar General Corporation
- Dollar Tree, Inc. Reports Results for the First Quarter Fiscal 2016 – Dollar Tree, Inc.
- Dollar Tree Completes Acquisition of Family Dollar – Dollar Tree, Inc.
- Dollar General invests in major expansion – RetailWire
- Will Dollar Tree + Family Dollar spell trouble for Dollar General – RetailWire
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