By George Anderson
Dollar stores and dollar stores-within-a-store are popping up in all the expected places and some unexpected ones, as well.
Jarron Springer, president of the Tennessee Grocers Association, said dollar store-within-a-store sections are becoming common in supermarkets, "but it's very popular in convenience stores also."
According to a report in the Knoxville News, Exxon is testing a dollar store-within-a-store in its Tiger Marts in Nashville and may roll it out chainwide.
The reason for the popularity of the dollar store-within-a-store concept isn't difficult to understand, said Mr. Springer. "It enables stores to maximize retail sales."
The state association's 2005 convention held this weekend at the Knoxville Convention Center included a speech, Value Retailing, Creating a Dollar Store Within a Store, by Steve Dillard, vice president of corporate sales development for Associated Wholesale Grocers (AWG).
According to the Knoxville News report, AWG recommends stores set aside a separate destination for dollar items rather than integrating them throughout the store. Placed side-by-side with other items may give consumers the impression that items sold above a dollar are priced too high.
Moderator's Comment: Based on your experience, are dollar stores-within-stores helping the retailers that have them drive greater sales and profits? What do retailers need to do to succeed with dollar items? - George Anderson - Moderator