Retail Forward, a market research firm based in Columbus, Ohio, produced a report on 13 May 2009 that almost 50% of US consumers now shop at family dollar stores. Struggling families seek to come to terms with rising household bills and living costs by saving money at discount stores.
Leading Family Dollar Stores
- Dollar General- profits up 9.4%.
- Family Dollar Stores- profits up 6.4%.
- Dollar Tree- profits up 9.2%.
These figures come against a backdrop of falling retail sales. The likes of Macy's, Abercrombie & Fitch and GAP all reported falls in excess of 10% in November 2008. Wal-Mart experienced a rise of 3.45.
Family Dollar Store Expansion Plans
Dollar General intends to open 450 new stores during 2009 and Family Dollar and Dollar Tree plan to open in excess of 200 new stores each. Goldman Sachs analyst, Adrianne Shapira, said in a May 10 report that: "We see no slowdown in consumers trending toward general thriftiness."
Food and Grocery Shopping
Consumers are noticing that family dollar stores are offering a wider array of items. Cheap grocery shopping is an effective way of coping with rising living costs and household bills. Dried grains, pasta, cheese and soup were in the ten leading growth categories. A Family Dollar store in Matthews, North Carolina released 200 new grocery items which included brands such as Triscuit and Oreo.
Family Dollar Stores Popular with High Earners
Not only low income families are seeking to save money, consumer with household incomes over $100,000 per annum spent 18% more at family dollar stores during the second half of 2008. A Nielsen report revealed that these increases were far higher than for Wal-Mart Stores and other leading warehouse clubs across America.
Family dollar stores are helping families to come to terms with rising household bills. The fundamental desire to save money is not likely to change in the near future so expect to see increasing numbers of discount stores appearing across America over the course of 2009 and beyond.
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Sources
Jones, Sandra. (13 May, 2009). "Dollar stores cashing in with bargain hunters." Los Angeles Times.
Disclaimer: This article in no way attempts to give legal or tax advice. One should consult a licensed attorney, tax advisor, or other qualified professional.
Asa Ghaffar - Asa has over 10 years of practical experience in loan approval, secured lending, bad credit repair, stock trading and debt management.
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