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Dollar Stores: More brands, more customers
Febuary 2012, mybudget360.com

United States of Dollar Stores – dollar stores see a rise in households making $70,000 a year or higher as a customer base.

What does the rise of dollar stores say about the middle class?

Before 2000 dollar stores were largely seen as a bazaar of quirky trinkets and plastic oddities. Many sold excess volume of products, even selling old Super Bowl t-shirts of teams that did not win. Yet the dollar store of today is not the one of even one decade ago. The disillusionment of the middle class and the rise of a low-wage American worker base have created a booming business for dollar stores. Customers from more affluent backgrounds are now shopping at these stores because of an economic caution about their declining purchasing power. Even in the midst of the boom in the stock market we still have over 45,000,000+ Americans receiving food assistance. I talked about this large segment of our population in EBT Nation. What does the rise of the dollar store tell us about the future of the American economy?

Dollar Store growth Dollar stores have been around for many decades but the surge in big name dollar stores really hit a full head of steam once the recession arrived:

You can see that the two leading dollar stores, Dollar General and Family Dollar hit full stride after 2008. This is a billion dollar business that is benefitting from the weakness in the overall economy. As more income is concentrated in fewer hands, the middle class gets squeezed down and with trillion dollar bailouts targeted at the financial sector, many Americans are seeing their purchasing power dwindle. Yet this compression is not felt as heavily at dollar stores where many can live large with a declining dollar, even if it is only for a brief shopping experience.

Dollar Stores: More brands, more customers
8 Aug 2010, 0209 hrs IST, Bloomberg

Wal-Mart Stores is beginning to lose its grip on cash-strapped Americans. Dollar General, Family Dollar Stores and Dollar Tree—three rivals that are the biggest of the so-called dollar store chains—have all seen traffic at their stores tick up this year, while Wal-Mart’s US numbers have slipped.

“Dollar stores are in a sweet spot,” says Bernie Sosnick, an analyst at Gilford Securities in Melville, NY “They are on the wrong side of the tracks, close to the where the lowest-income shoppers live. This puts them in position to do more business with people who are suffering from constrained spending power,” adds Sosnick. “Wal-Mart is flailing.”

The Bentonville-based retailer generated revenues of $258.2 billion last year from its 3,700-plus US stores, 10 times greater than the combined sales of Dollar General, Family Dollar, and Dollar Tree, which together have some 19,500 outlets. Yet in the most recent quarter, Wal-Mart’s same-store sales sank 1.4%, trailing gains of 7% by Family Dollar, 6.7% by Dollar General, and 6.5% by Dollar Tree.

“Our key point of difference with our customers is our everyday low price in a convenient location,” said Dollar General Chairman and CEO Richard Dreiling. Wal-Mart won’t discuss its competitors, says Greg Rossiter, a company spokesman.

A confluence of trends is behind dollar stores’ improved fortunes. Squeezed by higher gasoline prices, consumers are forgoing the often long drives to big box stores far from their neighbourhoods. “Our traditional shopper is feeling pain,” says Jim Kelly, Family Dollar’s president and chief operating officer.

“Then gas prices picked up, they looked for greater value in their basic spending.” Consumers also are being drawn to the stores by an expanding selection of name-brand products. Maria Wildrick, a kindergarten teacher in Carthage, Ill., says she now makes the 35-mile drive to a Wal-Mart in Macomb just once a month but visits her town’s Dollar General on a weekly basis, spending $75 on average.

“I had thought Dollar General carried cheap stuff, so I was pleasantly surprised,” says Wildrick, 54, who stocks up on Nestlé’s Fancy Feast food for her cat.

Family Dollar began building up its stock of name brands during the recession. Its stores now give more space to food, health and beauty aids, and paper products—and less to clothing and other discretionary items. The Matthews based retailer added more than 100 grocery items in the last quarter.

COO Kelly ticked off some of his recent coups while touring a store in Charlotte: Campbell Soup’s Prego pasta sauce, Kraft Food’s A 1 steak sauce, and J M Smucker’s Crisco shortening. “These are names that our customers recognise,” he says.

“We are broadening our assortment to get more of what our customers are accustomed to buying.” Similarly, Dollar General is installing taller shelves so it can accommodate more national brands alongside its own private label food and sodas. The decline in rents brought about by the real estate glut has also spurred dollar stores to expand.

News letter / USDS – April ~ June, 2010
Steal a Deal: Dollar-store shopping
Retail Franchise business option

With money tight, millions of Americans are discovering (or rediscovering) that their local dollar stores can help stretch household budgets.

Sales have surged at most of the major dollar stores -- as more shoppers look for deep discounts on pantry staples and household basics, as well as the occasional pair of flip-flops or Hannah Montana hand sanitizer. And it's not just low-income families looking to make ends meet.

Nearly half of American shoppers visit one of these discounters in a given month, according to a 2009 survey by market research firm Retail Forward. One-third of those shoppers have incomes of more than $50,000.

And they're finding out that some products simply don't require a well-known label to do the job. Dollar-store shopper Joana, a regular shopper says she swears by the Awesome-brand cleaner she finds at her local Dollar store. "It will clean anything," she says.

The number of dollar stores has grown by 50% since 2001, according to market research firm Nielsen. Sales grew at a clip of 3% to 8% last year among the industry's largest players. "They are gaining share from other discounters," Storms says. This boom in business has led many chains to stock fancier merchandise and bigger name brands.

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Other items that dollar-store shoppers recommend are school and office supplies, inexpensive tools such as pliers, candy and snack foods, candles and things kids lose frequently, such as sunglasses, mittens, ponytail holders and barrettes.

The bottom line: You Don’t need to comparison shop, when it’s a DOLLAR STORE !!!

In fact, what recent results suggest is that dollar store shopping is becoming a more ingrained habit for consumers, which is a development that could cause fits for expanding bargain retailers, even those as might at Walmart (WMT) and Aldi, as they look to coax more sales from lower-income consumers. The work dollar stores have done over the past few years expanding food and other everyday needs is paying off.

What seems to be happening is that customers are buying more everyday needs as food, dish soap and paper towels in its stores. They aren’t just bargain hunting. Dollar Store customers have developed the habit of dropping by for basics, and more often, with the result that the retailer’s stores are becoming more productive.

What it does have more attractive. It’s a good time to be a dollar store franchisee, no matter the approach to business.

News letter / USDS – February ~ March, 2010
Dollar Store Merchandise For 7 Top Performing Departments
World’s best top franchise opportunity

Once those who are about to open a dollar store locate the perfect site for their new business the next big question is all about dollar store merchandise. After all, it is the sales of those products that produce the dollar store profits for your business. Select the wrong items and nothing sells. Pick the right items and sales are strong and grow stronger. In this article I present information about the 7 of your top performing departments.

#1) Snacks – One of the misunderstood departments for many who open a dollar store. Profit margins are tight indeed. Yet as shoppers discover you carry a good assortment of the right snack items they will come in time and again to make their purchases. Create a standalone department and add the most popular snack items as impulse items at your cash registers.

#2) Grocery Items – The bargain hunters who shop in your store are always on the lookout for core food items they use all the time. Focus on those items first as you build your dollar store grocery sales. As this department gains a following add more variety to the choices offered.

#3) Household Cleaners – Household cleaners are a big seller. As with most core items while sales volume is high profit margins are tight. Be sure to place cleaners away from the entrance to your store so shoppers walk through other departments as they proceed to the household cleaners department. As shoppers go to and from the cleaners area they will stop and examine other dollar store merchandise. Of course most will make a few extra selections offering you higher dollar store profits even though their plan was to pick up only one cleaning item and then go back home.



#4) Household Paper Goods – Just like household cleaners, paper goods bring shoppers into your store every time they have a need. And of course, there are sales of others items while looking for the paper product they need. Carry a broad assortment of paper towels, bathroom tissue, facial tissue and more.

#5) Health and Beauty Needs – This is dollar store merchandise you must carry. Many items offer excellent profits while others come with much tighter margins. Start with the core items shoppers must have. For example, toothpaste, dental floss and toothbrushes all sell well. Hair care products including shampoo, conditioner, and related items sell well. Health and beauty is one department that must be well stocked with items to meet basic shopper needs at all times.

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#6) Party Supplies – The abundance of items in staggering. With prudent management and excellent wholesale buying here is another department that will produce excellent dollar store profits. When you open a dollar store you will discover shoppers will come in time and again to collect the party supplies they need for their next party or event. Many other shoppers will pick up items just because they see them.

#7) Greeting Cards – Few who open a dollar store realize the high volume and excellent dollar store profits a well run card department can offer. It does take time, and daily upkeep to maintain order. Yet the sales and dollar store profits more than pay for the effort. To your success when you open a US Dollar Store 99 !

News letter / USDS – Oct ~November, 2009
Tips on Newspaper Advertising
when you Own a US Dollar Store

Many who own a retail franchise of US dollar store assume there is little need to invest on advertising and marketing. They assume their dollar-store sale levels and profits will somehow continue to grow without re-investing in their business. And there might have been a time at some point when this was the case. But in today’s marketplace, there is more competition for every consumer dollar. So, there must be a marketing plan for your business that includes advertising in your local marketplace. One very good way to get the word out about your dollar store business is by advertise in your community newspaper. The good news is you don’t need to spend an arm and a leg to gain the exposure your business needs.



Tip #1) A small advertisement is all that’s required. Don’t feel you must buy full-page layouts to achieve your goal. You want to minimize dollar store costs associated with advertising while building your dollar store sale levels even higher. Newspaper advertising will not be the only thing you have in the works to achieve this goal. Use your newspaper ads to introduce new shoppers to your business, or to bring previous shoppers back. The goal should be to get the word about your store name, location, and products out.

Tip #2) Your ad needs to appear in every edition to maximize the impact. If you own a dollar store, don’t look to newspaper advertising as the quick fix to your dollar store sales woes. It requires repeated exposure to really draw attention and then results for your dollar store business. You will see some sale increases almost immediately, but don’t ignore the long-term benefits. Newspaper ads will serve well as still one more means of gaining repeated exposure for your business however.

Tip #3) Be sure to mix it up by changing the ad every 3-4 weeks. Focus on informing potential local shoppers about your store, the products you carry, where you are located, hours of operation, and other information they need to know. Be sure to advertise occasionally special purchases and sales as well. This will help motivate readers to take immediate action since these dollar store sales come with an end date.

Tip #4) When you operate a dollar store business, plan to mix it up further by periodically inserting ads for holidays or events or even unique, special merchandise you carry. This helps to maintain the freshness of your ads and draws interest from more potential shoppers.

To your success when you own a US dollar store! Apply NOW !!!

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News letter / USDS – September, 2009
Promotion to increase your retail business
Example relating to a Dollar Store business

Promotions give customers a reason to come back to your US Dollar Store more frequently. They add a festive tone to the atmosphere. Properly promoted and merchandised they can lead to significant increases in sales. The number of options available for promotions is virtually limitless. In fact, the bottom line is that it is easy to hold multiple celebrations every month if you choose. Even more important is the fact that your shoppers will return time and again throughout the month to purchase items during your promotional events. Those extra trips mean extra merchandise sales and extra profits.



The foremost to start with is the grand opening event for your own dollar store business which you may call MY own Dollar Store 99. Here is the perfect opportunity to announce you are here and open for business. You’ll be pleasantly surprised by the number of visitors a well run grand opening event can generate. Along with a high number of visitors will come great dollar store merchandise sales, and dollar store profits. Invest the time upfront to develop a plan. Then execute the right actions to turn that plan into a profitable event.

Major holiday promotions can mean major dollar store profits. There’s a long list of commonly celebrated holidays. These include all major festivals (like Diwali, ID, Rakhi, Christmas & other regional festivals etc ),New Years, Valentine’s Day, Mothers Day, Fathers Day, and the list goes on. There’s an even longer list of holidays that might be perfect for you and your customers to celebrate.

Celebrate every significant change for your business. It doesn’t matter whether it’s a store expansion, the addition of a new manager, or your annual store birthday be sure it is celebrated. Bring in some new and exciting dollar store merchandise. Then complete advertising and promotion to get shoppers excited.

As the customers walk through the door you’ll realize what a good idea holding the promotion. The positive impact to your business bottom line is sure to please.

There is an almost endless list of potential promotions you can celebrate at your dollar store business. In all cases it does take a little planning. You’ll need to order the right dollar store merchandise to match the promotion. Add a little advertising and you are on your way to even more dollar store profits.

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To your own dollar store business success! For more details visit www.franchisedollarstore.net www.nansonoverseas.com

News letter / USDS – July~August, 2009
How do Dollar Stores Stay in Business?
US Dollar Store 99 – Successful retail franchise

If it weren't for dollar stores, many of us would never have affordable party supplies, ceramic garden gnomes, bags of candy from unknown sources or DVDs featuring an action hero who vaguely resembles Chuck Norris. Dollar stores are outlets which offer a variety of merchandise for deep discounts, even for recognizable name brand items and clothing. All of the merchandise offered in dollar stores is one price, a dollar in USA and Rs. 99 only* (In association with India based ISO Nanson Overseas Company www.nansonoverseas.com)



But how do dollar stores stay in business considering the incredibly low retail price for their offerings?

One key to a US Dollar Store's survival is the power of buying in bulk. Manufacturers of less expensive consumer items such as plastic toys, party supplies, paper goods and snack foods often have a problem with surplus inventory. Buyers for dollar stores can often negotiate a deal directly with manufacturers to retail their surplus or bulk buy merchandise through franchise channel of US Dollar Store worldwide. The wholesale cost per item can be slashed to literally pennies if the buyer agrees to accept bulk shipments or absorb shipping expenses.

Certain items such as name brand beverages or foods may cost nearly a dollar wholesale, but they are often used as loss leaders to encourage customers to purchase other items with a much more profitable mark-up. Few customers of us dollar stores ever purchase strictly the items on their original shopping list, so the store profits from impulse shopping as well.

Dollar stores also stay open because of lower overhead and salary costs. Employees of dollar stores are often cross-trained to handle a number of duties, sometimes at the same time. A cashier may also be asked to stock shelves, receive shipments, perform inventory counts or any other duty assigned by the store's manager. The manager may also have to perform many duties at once, including ordering new stock and covering for occupied employees. The US Dollar Stores are well managed by the franchisee’s through proper guidance and training (with backend warehousing support) by the parent Company in USA or ISO Nanson Overseas Pvt Ltd (Asia region)

Another reason dollar stores remain in business is niche marketing. When customers need inexpensive party supplies or party favors, a dollar store generally offers a decent selection of merchandise for far less than an equivalent retail store. Parents shopping for treats or small toys for their children can save significant amounts of money by shopping at dollar stores. Holiday specials also attract customers who want to find unusual items not generally carried by retail stores. Gardeners and home decorators can also find inexpensive but decorative items suitable for everyday use at most us dollar stores.

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News letter / USDS – May~June, 2009
# 1 USA Franchise Opportunity
Dollar Store 99 Franchise

Dollar Stores might have a average middle class image in the mind of some people seeking a franchise opportunity, but dollar store franchises have just as much potential for moneymaking as any other sector.

Several renowned US newspapers have reported that dollar stores are among the fastest growing and most profitable businesses in the economy, and franchises allow even those without retail experience to get a foothold in this industry.

Franchises are provided those looking to open a dollar store with full training, and advise on property, the location of the store, and its layout. Owners of dollar store franchises will also learn the basics of running a business. Dollar store franchises can require initial investment, but the long-term rewards are significant.
A dollar Store can go a long way if you know the best place to spend it. That means as a consumer, a merchant or as an investor. Today more and more people are venturing to the thought of investing their time and money into themselves. Faced with the uncertainty of job security and carrying an unfulfilled entrepreneurial spirit, ordinary people who have spent years climbing that ladder of success, are choosing to make their own ladder. One of the most rewarding gateways to career freedom is the franchising experience.

A consistent provider of positive franchise experience is US Dollar Stores and its home office in Fl. In India it is being promoted by ISO Company Nanson Overseas Pvt Ltd (Contact Person: Gautam Sahni (SUNNY). Discount stores have a specialty of marketing small ticket household items, snacks, and giftware, etc. for less than a dollar. People in search of stable income, a business of their own or an opportunity to be more enterprising, can find a home franchising with US Dollar Stores and to growing Family of MY own US Dollar Stores.

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News letter / USDS – March~April, 2009
US Dollar Store 99 splashes out ….
Franchise Retail Opportunity

Consumers are continuing the trend of flocking to discount retailers as they realise they don't have to necessarily compromise on quality, as Which? recently found out when comparing discount supermarkets.

More than any time in the past, consumers want more for their money - they want the most for the least! US Dollar Store 99 takes that idea to a whole new level. The economy can be a rollercoaster ride but just imagine if you had the opportunity to purchase everyday staple items at a price that you can afford.The US Dollar Stores offer quality items including housewares, seasonal goods, candy and food, toys, health and beauty care, gifts, party goods, stationery, books and personal accessories. Your everyday needs at a dollar or less!

Consumers are scrimping and saving. And when they do spend, they want the biggest bang for their buck. To stretch their budgets, consumers are visiting discount dollar stores 99 in increasing numbers.

Dollar stores99 now sell everything from grocery items to children's clothes - at prices much lower than other retailers. People from up and down the economic ladder are finding that shopping at a dollar store 99 is an easy way to keep costs down…. Thus adding to their My family of US Dollar Store 99 even in India through Nanson Overseas Pvt Ltd.

Dollar stores' stigma as dingy knickknack shops is gone. Some of the store's products are generic, but now they sell many of the name brand items that are found at any local grocery.

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News letter / USDS – January~February, 2009
We wish a Happy & successful 2009 to our present and future clients and the visitors of our site… : US Dollar Store Inc.
US Dollar Store 99 finds for your home…
TOP BEST RETAIL FRANCHISE BUSINESS OPTION

Make a haul at these discount retail franchise stores 99 …

US Dollar Store 99 offers following categories listed on the site: Food, Pet, Household Products, Paper Products and Cleaning Supplies, Seasonal Merchandise, Outdoor & Sports, Beauty Care, Health Care. They have over 1000 brands available with them at their warehouse/online dollar store retail.

A little money goes a long way in today's version of the old five-and-dime store. MY Family of US Dollar Store 99 - and Sioux Falls has a handful of great, affordable options. And, stores like Target and Michaels have dollar sections near their front doors. YOU can't walk into either store without spending a few minutes checking out the selection. After all, dollar-store devotees know that it's important to shop around and to shop often. Not all stores are created equal, and the inventory is always changing. It's kind of like going on a treasure hunt stores 99.

Among the aisles of ceramic figurines, gift bags, cleaning supplies and no-name cheesy puffs and tortilla chips, there are hidden gems waiting to be discovered. Take advantage of all the fresh flowers this time of year by stocking up on simple glass vases. Or grab a supply of melamine dishes and plastic glasses - ideal for backyard barbecues. And fill up your beach bag with a bunch of inflatable water toys to take to the lake.

But another favorite thing to shop for in us dollar stores 99 is home decor. Mix in a few dollar pieces here and there with more expensive items, and no one will know the difference. Here's what I found recently, all with $1 price tags (Store Rupees 99 in India)

As happy customers/franchisees of US Dollar Store 99 Say …. I love dishes. My cupboards are filled with three or four different sets. What can I say? I like to mix and match. But I'm running out of storage space, so these ceramic plates and bowls from Dollar store could be the downfall for me. Same goes for these frosted glasses from US Dollar Store 99. One dollar each? That's cheap enough to change things up whenever the mood strikes. I'll make room in my cupboards.

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I don't have a green thumb. Never have, never will. But that doesn't stop me from planting a few flowers every year to spruce up the landscaping around our house. Still, by the middle of July, I've usually forgotten to water them and they die. But this butterfly garden stake from Dollar Discount will look good all year long.

Spending at dollar stores nationwide this holiday season is expected to grow by 2 percent, down from 2.8 percent growth for the holiday season last year, according to a forecast
News letter / USDS – November ~ December, 2008
Dollar stores 99 cash in as economy struggles
Retail Opportunity Trade for dollar store 99

Dollar Stores are a hot news item these days, as the discount market grows its share of spending from budget-conscious consumer. So while Walmart and its ilk are doing reasonably well given the overall trend towards buying less, the US Dollar 99 Cent Store Family are expected to increase sales thanks to shoppers who want to stretch their paychecks a bit more. Despite the sense that people who shop at discount dollar stores are struggling financially, the numbers indicate that these stores (along with big-box stores like Walmart) are gaining popularity with more affluent shoppers too.

Higher household costs have seen shoppers into everything's-a-dollar chain looking and purchasing for best prices on food, cleaning supplies and health and beauty products etc. The US Dollar Store Franchise Company is also being flooded with enquiries these days of people looking for Franchise Dollar Store as people without jobs (as company’s laying off) want to join the franchise retail opportunity of 99 Dollar Store Franchise and OWN their Dollar Store and call it with pride My OWN Dollar Store 99 thus joining My Family of US Dollar Store as per franchisee.

"The vast majority of everything sold in these dollar stores in terms of Health & Beauty, Cleaners etc is made in the U.S.A."

People buy more than "dollar" items at these stores – witness the increase in dollar bargain bins at supermarkets.

US Dollar Store is benefiting from current economic conditions which is encouraging by evening increasing the retail Opportunity franchise Dollar Store and adding to their "MY FAMILY OF US DOLLAR STORE"

customers to seek shopping alternatives that offer quality products at everyday low prices, And good deals always customers who browsed the True AmerIcan Dollar 99 Store Shoppe

Success of franchise retail of dollar store 99 is that Part of the stores' secret is that the dollar stores keep prices low by purchasing a variety of overstocked, liquidated, discounted or discontinued products, including many name brands.

The stores have begun expanding into new areas and even suburbia has caught on, changing the profile of the typical dollar store shopper.

News letter / USDS – September ~ October, 2008
Super centers, Dollar Stores Among Trends Discussed In ...
Retail Franchise – Dollar Store

Dollar stores: By 2011, there will be 27696 dollar stores with sales of $20.6 billion a food retail market share of 2 percent. ... These stores are fast expanding thru franchise opportunities.

"Everybody loves a deal. Finding a bargain gives people a thrill."

Want to Go?
US Dollar Store … Join Our Family of US Dollar Stores so you say next time MY FAMILY OF US DOLLAR STORES

WHAT DOES A BUCK BUY?
Here's an idea of what $1 will get you at a Dollar Store : Christmas tree lights, felt stockings, electric candles, cookie tins, garland, tinsel, Santa hats, reindeer antlers, gold cowboy hats, beaded coin purses, Hanes T-shirts, baby clothes, socks, belts, hats, flip flops, Coldwater Creek sweatshirts, dresses, beaded vests, shoe organizers, dust pans, cat toys, dog bones, balloons, bows, gift wrap, ribbon, greeting cards, scissors, note pads, craft supplies, glue, tape, rubber bands, notebooks, ceramic lotion dispensers, bathtub stickers, hair clips, picture frames, silver-plated trays, , egg separators and funnels etc etc

We help create business opportunities for entrepreneurs like you…

Come join our growing family of us dollar stores Become retail franchisee of US Dollar Store and own your dollar store

Our goal is to help you open a dollar store.
US Dollar Store inc. is the most economical and largest developer of the finest high image dollar to be found anywhere across the world (USA, INDIA – PAN –Franchise India)

We offer a total comprehensive package, which covers every pertinent aspect of opening and running a retail business long term. We assist in finding your new dollar store location, help negotiate the lease, perform the store design and layout, do the physical build out, help you to secure financing as well as provide ongoing support. We supply all dollar store merchandise, fixtures, equipment along with the work crew to open the store, and we do it quickly and professionally.

Merchandise From Our Quality Suppliers Network:
The long term success of any store revolves around merchandise. In our business, the value, variety and amount of new merchandise you provide customers are three critical variables that will determine how successful you are, and this is where we excel!

Our merchandise is provided through a vast network of suppliers, both importers and domestic closeout companies. We travel to personally see each of our suppliers on a regular basis where we inspect new dollar store merchandise to assure high value and quality, and to review hot, new merchandise. Then, we negotiate rock-bottom prices on behalf of our network.

Training and Support:
Training is designed to ensure that each new owner is familiar with the many aspects of managing their store. This experience begins before and continues well after the store's opening. Your trainer will be in contact with you both before and after the store has opened. This training will include a full review of a comprehensive operations manual and related materials designed to aid you in operating your store on a day-to-day basis. Both classroom and onsite training are available, and encouraged, prior to the opening of the store.

International Franchise Opportunities:
US Dollar Store inc. is the best developer of dollar stores in the United USA and INDIA (Asia – India, Pakistan, Nepal, Bhutan etc etc) . We also offer a completely comprehensive program for foreign nationals who would like to open a store in their own country. franchise@usdollarstore.org

News letter / USDS – July ~ August 2008
THE BUCK SHOPS and STOPS HERE
MY FAMILY of US Dollar Store

Dollar stores, once the domain of lower-income households, are reaching out to -- and snagging -- higher-income customers

Dollar stores, which long have been found in rural America and economically depressed areas of cities, have in recent years popped up in the suburbs and more middle-class areas of urban centers.

In short, they've gone upscale -- at least a little. Instead of catering almost solely to households with incomes of $30,000 or less, they increasingly are reaching for SUV-driving soccer moms and graduate students. They have been taking over the spiritual space left by the long-gone five-and-dime stores, offering a dizzying variety of merchandise at low prices.

Dollar-store executives like to point to a recent survey that found that 48 percent of households with incomes less than $30,000 shopped at a dollar store last year. These customers love saying “ We always shop at My own US Dollar Store, thus strengthening our family of dollar stores ” That's not surprising, but the same survey found that nearly half of households with incomes greater than $70,000 also had shopped at a dollar store in the past year. That reflects an increasing acceptability of dollar stores among more affluent customers.

Anatomy of the dollar store

Dollar stores, or "small-format value retailers" in industry parlance, have $2 bottles of kitchen cleaner, $1 birthday party tchotchkes, $5 plastic storage bins and rows of everyday essentials ranging from health and beauty aids to ketchup. The stores are compact, topping out at about 15,000 square feet.

They appeal to customers who might not want to traipse across a huge store and its accompanying parking lot just to pick up a few items.

"They tend to fill a void that's been created in the market as Wal-Mart and Target have created bigger store formats," says head- US dollar store Merchandiser.

And they appeal to customers who don't mind buying stuff cheap. US Dollar stores got their name because lots of items sell for $1.

Says, US Dollar Store product merchandiser “ But increasingly dollar stores are stocking familiar names that make the affluent more comfortable.”

"As the channel has grown, the larger consumer-products manufacturers have been much more willing to sell to them," Spokeperson said. That means shoppers can find goods from Procter & Gamble, Johnson & Johnson, Hershey Foods, Unilever and General Mills in their local dollar store alongside lesser-known brands of toothpaste, candy and cereal.

The dollar store chains have doubled sales and added more than 7,000 stores in the past five years, according to consulting firm Retail Forward.

MY FAMILY of US Dollar Store – Retail Chain

Even though dollar stores may seem identical to a casual passerby, each chain is a bit different and has a different strategy. And even though they generally are happy to reach into more affluent areas, they aren't abandoning the lower-income zones.

US Dollar Store family, already established in rural areas, is moving to more densely populated suburban markets. The company has sights on higher-income households, that other half of households with incomes greater then $70,000 that still hasn't shopped a dollar store.

US Dollar Store is more focused on shoppers with annual household incomes just less than $50,000, leading the company largely to suburban locations. The chain's customers are "Middle America shoppers who don't have enough in their wallet to afford 30 rolls of paper towels but know they ran out this morning, or don't have to buy a 30-gallon cauldron of mayonnaise to get a good price," the spokesman, said.

At the FAMILY of US Dollar Stores, everything in the place, from paper plates to dry noodles, sells for a buck.

"We also carry a larger percentage of basics, things that are carried 52 weeks a year as opposed to opportunistically purchased goods that might be in the store one week and not be in the store another week," Executive – USDS Dollar Shops.

Location, location, location – KEY TO SUCCESSFUL FRANCHISE BUSINESS BUCKS – Dollar Stores ( USA, PANAMA, INDIA, Etc )

We are pursuing an urban strategy, placing stores in underserved markets as well as the suburbs so as to grow our family of Dollar Stores…..

Urban stores can be challenging to operate but produce the highest level of sales and strong returns, executives said.

Dollar stores mostly are located in suburban areas and can be built in retail space abandoned by other retailers. But the company has tweaked its location strategy in recent years. Dollar stores originally were small spaces located near high-traffic mass merchants or grocery stores that brought customers to their door.

If imitation is a sincere form of flattery, the dollar stores are being sincerely flattered: Some other retailers are responding to the dollar stores by adding sections or aisles of merchandise priced at $1. But these small retailers always tend to fail as the success of the dollar store depend on merchandised dollar store product variety which is procured from various countries.

For Franchise / Contact :
USA
1087, West Orange Blossam Trail,
Apopka, Florida- 32712
franchise@usdollorstore.org

INDIA
W-!9, G. K. - II
NEW DELHI - 110048
Mobile +91-9871196841
gautam@nansonoversaes.com

News letter / USDS – June, 2008
Dollar stores feed bargain hunters

Shoppers looking for a bargain turn to fast-growing dollar stores in USA, ASIA (Like India, Nepal, Pakistan, Srilanka, Bangladesh etc )

Quick: Where can you buy a quart of motor oil, a bottle of dish soap, a tube of glitter glue and a pair of reading glasses, all for $1 each?

A dollar store, of course.
These bargain basements, with names like US Dollar Store, 99 Dollar Store, Dollar Tree, Dollar City, Family Dollar Store, My Dollar Store, dollar shops etc, are popping up on street corners and shopping centers throughout the Modesto area.

The explosion of dollar stores proves that an idea as simple as merchandising items based on price alone can mean big business. ...

For many smart shoppers, the thrill of hunting down a great deal is as satisfying as the actual savings from the purchase. The explosion of dollar stores proves that an idea as simple as merchandising items based on price alone can mean big business.

There are shoppers who are faithful dollar store acolytes and swear by the deals they find on all kinds of merchandise. At the very least, the “dollar store” name piques shoppers’ curiosity enough to get shoppers to make at least one visit to a local dollar store to see what all the fuss is about.

Today’s Dollar Store, like US Dollar Store chains are as organized as any retailer, with online weekly ads, Web sites and circulars in the newspaper or mail, inventory management by state of the art software’s and control systems.

US dollar stores has some good bargains. When it comes to groceries, the selection at a typical dollar store is fairly limited, offering one or two aisles of nonperishable items such as condiments, snacks and canned goods. Some dollar stores have complete produce and refrigerated sections, but they’re not as common in a standard dollar-store format.

For shoppers who do not like through go to the trouble to time store sales with grocery coupons, us dollar stores can be good sources for cleaning products, snack foods, basic paper goods (such as paper plates and cups) and personal-care products. However, many dollar stores get their products directly from the U.S. manufacturer..

The best bargains at the dollar store are outside of the grocery aisle — such as greeting cards (at two for $1.00 in many cases), party supplies, seasonal decorations, books, stationery and children’s party favors and toys.

The dollar-store-pricing concept has spilled over to traditional supermarkets. Many grocery retailers have copied the simple, effective strategy of merchandising items at the dollar price point. Grocery stores have “dollar days” promotions or signs that tout “10 for $10” sales. Even if the items typically sold for about one dollar before the promotion, shoppers get the impression that they should stock up on these super bargains. My store promotes “10 for $10” sales with the slogan “Mix and Match” which makes shoppers think they have to buy 10 items to get the $1 price per item. The store ad will feature dozens of items included in the promotion, giving shoppers the flexibility to buy several different items to get to their 10-item quota. Of course, most stores charge $1 per item regardless of the number of qualifying items purchased. If a minimum purchase is required, stores will clearly state those terms. If you aren’t sure, be sure to ask a store associate so you don’t blow your budget getting more bargains than you need.

Recession-proof Dollar Store and discount store Analysts say these retailers won't lose in an economic downturn because consumers will want to, or have to, shop at them.

There's no arguing that retailers have to strap in for a very tough 2008. But it won't be gloom and doom everywhere.

Analysts say consumer frugality during tough economic times can actually be a boon for some merchants.

One way to save money is by what retailers call "trading down."
This means that more mid-income Americans will try to stretch their dollar by migrating to discount stores, value-priced retailers and wholesale chains in the months ahead.

Such activity will benefit discounters and wholesale outlets, including Wal-Mart, Costco, Dollar Stores / Shops ( @ Single Price $1 / 99 cents) .

News letter / USDS – May, 2008
Dollar Stores Outlook
Dollar Stores Continue Rapid Growth

Small format value retailing, including dollar stores, will remain a high-growth darling of food, drug, and mass retailing over the next five years, reports Retail in a recently released Industry Outlook report, Dollar Stores and Other Small Format Value Retailers.

Retail projects 8,000 more stores to open in the next five years and anticipates the pace of sales growth for small format value retailers to be as strong in the coming years as it has the last five.

Small format value retailers grew nominal sales at an average annual rate of 6.1% (5.6% after removing inflation) over the last five years. Retail forecasts sales growth of 7.5% in 2004 and an average annual pace of 6.2% through 2008 as the channel continues to benefit from continued rapid expansion, same store sales growth, and efforts to increase shopper traffic, shopping frequency, and average ticket size.

Next to supercenters, dollar stores remain the fastest growing channel among food, drug, and mass retailing. No frills stores, low prices, and a small, easy-to-shop and easy-to-access format gives shoppers a convenient option to big box discount retailers, like Wal-Mart.

While the weak economic climate of recent years may have initially driven shoppers to "try" small format value retailers, leading players in the channel are extending their appeal to multiple consumer segments. According to Retail consumer survey, over one-third (36%) of all US households regularly shop the format on a monthly basis. Once a haven for low-income households, dollar stores hold growing appeal for moderate and upper-income households, older consumers, and ethnic groups. Easy access with more stores in suburban and urban locations, improved assortment quality, bargain prices, and the treasure trove atmosphere contribute to the overall success of the dollar store concept.

Dollar stores and other small format value retailers have sustained solid financial performance in recent years, while many other retailing formats have struggled. However, sustaining performance in the years to come might prove challenging. Retail expects that as the store base becomes larger and units mature, same store sales will be harder to achieve.

The growing number of dollar stores brings more intense competition, more market share battles, and more vying for consumer attention. Dollar stores are expected to continue adding more food and other household essentials to their merchandise offer. In turn, more traditional food, drug, and mass players will look to exploit dollar store popularity by launching their own versions of the dollar concept. As a result, Retail expects that the lines of demarcation between retail channels will blur even further in the years ahead.

The growing popularity of the dollar store concept also brings significant opportunities for manufacturers. To extend their consumer appeal, dollar stores and other small format value retailers will consider adding more national brands - if the price is right. Dollar stores would soon be spread over in Asia ( India, Pakistan, Bangladesh, Nepal, Srilanka, Dubai – UAE etc ) in association with Asia Partners as M/s Nanson Overseas Pvt Ltd based in New Delhi – India.

NEW LETTER / USDS - APRIL 2008
THE TREASURE HUNT IS ON

It has been said that there are three keys to success in the us dollar store business. The first two are well known: sell extreme value and have a convenient location. But what about the third? This element is sometimes overlooked, but it is the most controllable of the three and plays a vital role.

We're talking about the treasure hunt experience, that intangible ‘fun factor' that keeps customers coming back for more. Ask a customer what it is they're looking for and they probably wouldn't be able to say. But successful retailers understand very well just how important this part of the business is.

What we do know is that Americans love to shop. We're a nation of impulse buyers and us dollar stores fill this need in a way that's fun and affordable. In fact, many consumers so enjoy hunting for a bargain they won't leave the store until they find it.

One reason why high turnover and good merchandising us dollar store items are important is the fact that so much of a store's business depends on repeat shoppers.

By constantly refreshing the merchandise, retailers are able to better serve this customer.

How do you make sure your us dollar store feeds this instinct? One key is rapid turnover. Make sure you have something new every few weeks, something that's easy to find and well displayed. The use of specials is also a great way to keep shelves fully stocked – another key to success.

Among the most popular treasure hunt dollar items are glassware, party goods, kitchen items, plastic containers, tools and picture frames. Also, a heavy rotation of seasonal and holiday dollar items adds surprise and discovery to the shopping experience.

Gift items are another growing category that adds to the treasure hunt aspect. According to Deloitte, a New York based consulting company, a high of 22% of shoppers bought Christmas gifts at us dollar stores last year.

Closely related to the treasure hunt aspect is the kids' treasure hunt. Many moms with limited entertainment budgets take their children shopping when they visit the us dollar store, where they can buy an armful of toys for a few dollars. Having a steady stream of new toys to be discovered gives them something to do, which results in a grateful mother.

Ultimately, the extreme value element of marketing will always be king, because it makes the customer feel in control. But by providing a constantly changing treasure hunt experience, retailers will retain their best customers and continue the rapid growth of the dollar store industry.



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