Some dollar store customers often have “less of an ability to access online retail,” Faucher said, because of shipping fees or lack of internet access or experience shopping online. “That certainly means they can go in more places.”ĭollar stores are also better protected against the rise of online shopping, said Gus Faucher, the chief economist at PNC. “They can fit more easily into local real estate than, let’s say, a Walmart or Target or something that’s a bigger format,” Fenyo said. Stores are typically under 10,000 square feet, compared to 180,000 square-foot Walmart supercenter or a grocery store, which is typically around 40,000 square feet. It's also a robbery magnet, police sayĭollar stores are able to open in areas other retailers wouldn’t because of their small size, Fenyo said. Maddie McGarvey for CNNĭollar General is cheap, popular and spreading across America. Inflation is rising and is expected to continue to rise over the summer months as the economy fully reopens.ĭollar General CEO Todd Vasos said in March that company data indicated that there was an increase in new customers during its most recent quarter compared to the same time last year, noting that they “skew younger higher income” than traditional shoppers.ģ119 E Third Street Dollar General in Dayton, OH on March 12, 2020. The companies are also capturing more affluent shoppers hunting for discounts on essentials, Fenyo said.Ĭonsumers may be looking to save even more money now. (DG) and Family Dollar mainly cater to low-income shoppers. (DLTR) targets a broad range of income groups, Dollar General That’s probably the overriding reason we see for the growth in the format.” The dollar stores appeal strongly to that segment of the population. “So while the wealthy have done well and continue to do well since the Great Recession, there’s certainly a lot of the population that has not done as well. “We’ve seen a bifurcation in the economy,” said Ken Fenyo, the president and head of advisory and research at Coresight.
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