Dollar & Other General Merchandise Stores
- ID: 1299856
- June 2015
- Region: North America, United States
- 10 Pages
- First Research
Brief Excerpt from Industry Overview Chapter:
Companies in this industry sell a variety of merchandise including consumables and housewares through retail locations. Major companies include Dollar General, Dollar Tree, and Family Dollar, all based in the US, along with Dollarama (Canada) and Poundland Group (UK).
The dollar and other general merchandise stores industry in the US includes about 36,000 retail outlets with combined annual revenue of about $60 billion. The industry includes single-price merchandisers as well as general merchandise stores. Department stores, discount department stores, and warehouse clubs and superstores are covered in separate industry profiles.
Demand is driven by consumer spending, particularly among less affluent consumers, as most companies target the lower- to middle-income demographic. The profitability of individual companies depends on their ability to effectively locate stores and to maximize their revenue per square foot. Large companies have advantages in purchasing and in negotiating lease arrangements. Small companies can compete effectively by locating in a previously untapped market. The US industry is highly concentrated: the eight largest companies account for about two-thirds of sales.
Dollar stores compete not only within the industry, but also with mass merchandisers, grocery stores, and drug stores. Stores in each of these categories also offer low-cost items; many have special sections that offer products for $1. Dollar stores that sell tobacco products also compete with convenience stores for sales.
The number of dollar stores accepting Electronic Benefits Transfer (EBT) cards and food stamps has grown as stores...