Daily Research News Online no. 2536 - Dollar Stores Clean Up ...and Clean Up

Dollar Stores Clean Up ...and Clean Up

August 11 2003

Dollar stores, discount US retailers with a traditionally basic product range and layout, are experiencing strong growth in sales in the current difficult economic climate, according to recent research from ACNielsen US. More stores, better quality and more variety all add up to a widening appeal which now encompasses a new breed of wealthier shopper.

While low-income households have the highest concentration of dollar-store shoppers, the percentage of households shopping the channel (household penetration) is growing fastest among higher income groups.

Percentage of Households That Shop in Dollar Stores

Household Income	Household Penetration
(U.S. Dollars)	2000	2002	% Change

All Households	55	62	13
>$70K	37	45	22
$50-$69.9K	48	58	21
$40-$49.9K	54	64	19
$30-$39.9K	57	67	18
$20-$29.9K	62	71	15
< $20K	67	74	10

According to Todd Hale, ACNielsen Senior Vice President, Consumer Insights, 'A number of factors are converging to drive the success of dollar stores. Rapid store count growth is making the format accessible to more people; the tough economy is prompting more people to become bargain shoppers; and dollar-store retailers have made their stores more appealing by cleaning them up and improving both the assortment of products they carry and the quality of those products'. Hale was speaking at Retail Merchandiser magazine's Dollar Store and Value Retailing Summit.

Unsurprisingly, low-income households shop in dollar stores much more frequently. According to an ACNielsen Homescan analysis, dollar-store shoppers from households making less than USD 20,000 per year shopped in dollar stores 18 times in 2002, versus just seven times for those with household incomes of over USD 70,000 a year. Larger, less educated, blue-collar and rural households are also more likely to be dollar store shoppers / frequent ones.

The full report, 'The Dollar Store Consumer', is available for USD 495 by contacting Jan Crawford at +1 847-605-5000.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.