In a discussion on this site last September concerning Dollar General's announcement that it was going to sell products online, Ben Ball, senior vice president at Dechert-Hampe and RetailWire BrainTrust member, wrote, "Knee jerk reaction is to say 'not for dollar stores,' but we have said that about so many other things in the past that we have to ask 'but why not? ... The opportunity to reintroduce and expand the 'treasure hunt of bargains' concept of the original dollar store may be the opportunity. Dry goods, hard lines and housewares could all be candidates for a 'let's see if we can find it cheaper at Dollar General's website.'"
While participants in the September discussion saw a modest opportunity online for Dollar General and others in its channel, a recent RetailSails blog concludes that the number of various discount retailers launching e-commerce sites could be a "game-changer."
According to the blog, "While the nature of the business model might not have translated well to online selling in the past, the recent move into e-commerce by Dollar General and Dollar Tree show that the economics are starting to make sense. We expect names like Ross Stores, Family Dollar and 99 Cents Only to join the online party in the near future."
One discounter that RetailSails expects big things from is TJX Cos. The operator of T.J Maxx, Marshalls and HomeGoods is investing heavily in online despite having made a failed attempt at the business in 2004.
On the company's fourth quarter conference call, CEO Carol Meyrowitz said, "We continue to see e-commerce as a major opportunity for TJX. We see it as a marriage between our stores and the web."