By George Anderson
The Houston Business Journal has reported Kroger is testing its new dollar store concept in the local market.
The dollar stores are located within existing Kroger locations but are setoff with separate entrances and signage. Kroger spokesman Gary Huddleston said the stores carry between 10,000 and 15,000 food, clothing, greeting cards and party supply items priced at $1 or less.
Moderator's Comment: Will a dollar store within an existing supermarket or other retail format cannibalize existing sales and profits? How much impact do you expect these stores within a store to have on standalone dollar stores?
Eric Schiffer, president of 99 Cents Only, told the Houston Business Journal he isn’t concerned. "I think the affect it will have on our stores will be negligible. In California, almost every grocery has a dollar store and it hasn't affected our sales at all." [George Anderson - Moderator]