DelmarvaNow – Dollar stores are shedding their low-rent image and appealing to consumers up and down the income scale with rock-bottom prices and convenience, retail analysts say. As a result, Dollar General and its ilk are bucking the brick-and-mortar retail sector’s skid.
“It’s probably one of the few bright spots in retail today,” said David Naumann, vice president of marketing for the national consulting firm Boston Retail Partners. “It’s by far the hottest segment.”
The roots of the dollar store’s revival lie in the Great Recession, Naumann said.
”I think people started to be more cost-conscious because they had to. That probably helped these off-price and dollar stores to thrive,” he said. “For these customers, and millennials specifically, Naumann added, “it just became a habit.”
The boom has been fueled by the expansion of dollar stores’ customer base, Naumann said. They’re not just for bargain shoppers anymore.
“There used to be a stigma probably of walking into a discount store,” he said. “But people I talk to, even wealthy people, (ask) ‘Where did you get that?’ ‘Oh, I got that at the dollar store.'”
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