Dollar stores (DG, DLTR, FDO) are sitting in the sweet spot for retail, according to analyst...

Dollar stores (DG, DLTR, FDO) are sitting in the sweet spot for retail, according to analyst Kristin Bentz. Though the stores were once a destination for shopping "treasure hunts," a trend of consumers using the outlets as de facto grocery stores for basics and consumables is firming up. Wal-Mart (WMT +0.5%) may get a piece of the action with a plan to increase its footprint of small-format stores, while grocery stores could suffer a loss of market share (KR, SWY, SVU). (full report .pdf)

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Comments (2)
  • BruceInKY
    , contributor
    Comments (445) | Send Message
    As an anecdotal confirmation of the abovementioned trend, I can always buy tea for less at Big Lots, Pop Tarts for the kids are cheaper, and Progresso soups are .25 less a can than at KR. There are also the "treasure hunt" finds.
    13 Mar 2013, 10:11 AM Reply Like
  • canstackerforever
    , contributor
    Comments (4) | Send Message
    All I can say is SVU tried to make a play in this arena around 2002 when they bought "Deal$, Nothing Over A Dollar". Needless to say, all of the hoopla around their marriage with Save-A-Lot and the subsequent roll out of "combo" stores was anything but spectacular. All it did was add complexity to both operations--something neither entity was prepared do deal with. It lasted about four years and then the sale of "Deal$" was conveniently timed to coincide with SVU's other great strategic move--i.e. the purchase of Albertson's. All for a price around 1/2 of what the original purchase amount SUV paid for Deal$. Funny how these great ground breaking moves get swept under the rug and those responsible never are held accountable.
    13 Mar 2013, 10:53 PM Reply Like
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