By George Anderson
If imitation is the sincerest form of flattery, then retailers such as Dollar General, Family Dollar and others must feel highly flattered as retailers from A&P to Wal-Mart test dollar store sections within their traditional formats.
According to USA Today, sales at major dollar store chains was up around four percent while department stores, mass merchandisers and supermarkets either had sales fall-off or increase only slightly.
Howard Davidowitz, chairman, Davidowitz & Associates says there is no mystery to the consumer acceptance of dollar stores. "Customers love extreme value," he said.
Moderator's Comment: Does the rush to open dollar store sections amount to an overreaction on the part of retailers seeking to blunt competition?
The growth of dollar stores in recent years has been nothing short of meteoric. Perhaps that explains why recently we've been finding ourselves wondering when the dollar store bubble will burst. [George Anderson - Moderator]