- Language: English
- Published: January 2015
Dollar & Other General Merchandise Stores in the U.S.
- ID: 1299856
- October 2014
- 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 US companies include Dollar General, Dollar Tree, and Family Dollar.
The dollar and other general merchandise stores industry in the US includes about 34,000 retail outlets with combined annual revenue of about $55 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, to maintain value in the eyes of the consumer, and to maximize their revenue per square foot. Large companies have advantages due to their ability to negotiate better lease arrangements for retail space, and lower product prices with manufacturers, vendors, and other suppliers. Small companies can compete effectively by filling a niche market or locating in a previously untapped market, as the barriers to entry are low; startup costs are estimated to be about $230,000 per retail outlet. The US industry is concentrated: the eight largest companies account for about two-thirds of sales.
The industry is highly competitive, as companies must compete within the industry, as well as with other retail categories such as discount department stores (Wal-Mart and Target), grocery stores, and drug stores. Each...
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