By George Anderson
Not every company in the dollar store space is convinced that food sales are the way to go, but the Dollar Tree and Dollar General chains are finding that grocery items help drive customer traffic and improve average ring in locations where they are sold.
"It's an additional sale," Bob Sasser, Dollar Tree's chief executive officer, told The Virginian-Pilot. "When people shop with us now, it's one more thing they can buy from us."
Dollar Tree reports that stores where grocery items are sold have experienced an average five-to-six percent gain in sales. In comparison, stores without refrigerators and freezer cases have seen sales move up about one percent.
Perry Curry, manager of the new Dollar General Market in Madison, Ala. compared his store to Wal-Mart's Supercenter format. "We're the same thing, just on a lot smaller scale," he told the Madison Spirit. "We're a lot cheaper than a regular grocery store."
Alicia McDaniel, a consumer who shopped at Mr. Curry's store, said, "I just came in because we're out of food at the house. We needed something for lunch so I bought several days' worth."
"I like it (Dollar General Market). It's got a lot of variety," she said. "It's fast and quick to run in and get something."
Holding to its dollar price point, said Dollar Tree's Sasser, means his company won't be trying to replace grocery stores.
"I can't sell you a gallon or even a half-gallon of milk for a dollar," he said.
Moderator's Comment: How significant a presence have dollar stores become in the grocery products business? Which of the dollar stores selling groceries has been most effective in this area? - George Anderson - Moderator