Archive for Family Dollar
Private Brands Boost Family Dollar
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Matthews, NC based retailer Family Dollar reported a 13% increase in quarterly profit on Wednesday, beating Wall Street estimates, as the economy forced penny pinching shoppers to discover values.
The retailer plans to increase Private Brand penetration over the next two to three years and if they follow the trend of other retailers, new brands and redesigns should be a part of their evolved Private Brand strategy.
If you enjoyed this post, get FREE updates when you subscribe to Myprivatebrand’s Blog by Email.The Rise of the Dollar Store?
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In an article posted yesterday, Monday, June 29 by Reuters, Nicole Maestri and Lisa Baertlein take a look at the rise of the dollar store in this tough economic environment. Particularly disturbing for traditional grocers is the assertion by customer Juan Bugueno that he “prefers the dollar store for staples like vegetables and eggs.”
The article goes on to quote, Richard Hastings, consumer strategist at Global Hunter Securities, who said that a private label strategy has its drawbacks.
“There’s the risk that the shopper could swap over to private label anywhere else … and buy private label at an entirely different company,” he said Dollar stores are happy to be that different company.
Grocers on defensive as dollar stores rise
SAN FRANCISCO/LOS ANGELES (Reuters) – When it comes to buying food, Juan Bugueno is shopping around and finding bargains in dollar stores, a worrisome trend for supermarkets.
Bugueno, 42, shops the Albertsons, Ralphs and Whole Foods grocery stores in his Venice, California, neighborhood — but prefers the dollar store for staples like vegetables and eggs.
“It’s cheap and it’s good,” said Bugueno, who among other things was buying bagged spinach and garlic at a busy 99 Cents Only Store (NDN.N) instead of at a Whole Foods next door.
In addition to heightened competition from top U.S. food seller Wal-Mart Stores Inc (WMT.N), grocers must also defend their turf against scrappy dollar stores that are using food to tempt shoppers like Bugueno, amid the recession.
Family Dollar Stores Inc (FDO.N) has added 200 new food products, like Triscuit crackers and Kraft salad dressing, while Dollar Tree Inc (DLTR.O) is installing freezers and coolers to sell ice cream, sandwich meat and frozen dinners.
If you enjoyed this post, get FREE updates when you subscribe to Myprivatebrand’s Blog by Email.Dollar Stores Reap the Benefits of Private Brand.
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This article published today, Monday, June 08, 2009 in the Texas daily the Lubbock Avalanche-Journal takes a look at dollar stores, Dollar General specifically through the life of one customer.
Generics become popular option
As an out-of-work brick layer, Gilbert Figueroa said he’s having to cut back on his expenses.
Holding sacks of groceries in front of Dollar General at 19th Street and Avenue W, he said he’s been shopping at “dollar stores” more in recent months, trying to save money on food and other groceries he’s found to be “way cheaper.”
Figueroa said he can’t afford to fix his broken-down car – though he is saving money on gas – and appreciates the convenience of walking to the Dollar General a few blocks away from his home.
But he said there is a limit on where he’ll cut back – buying toilet paper.
“When you buy cheap toilet paper, you’re not going to get the same results you’re going to get from a good toilet paper,” he said.
Figueroa is one of the many people in Lubbock and across the country looking to save money during hard times. Some people are buying more generic products, shopping at “dollar stores,” or doing home-improvement projects themselves instead of hiring them out.
He said he knows he’s been directly affected by the national recession that slowly crept into Lubbock.
“Nobody’s buying any houses any more,” he said explaining why brick-laying jobs have been harder for him to find in the city in recent months.
Though Figueroa exaggerated a bit – as home sales are down 16.2 percent, but not out, according to the latest Lubbock Economic Index for April reported May 27 by Lubbock National Bank – he’s still out of work.
Shopping for generic products and discounts from retailers such as “dollar stores” has been increasingly popular in recent months, as indicated by sales reports from discount retailers.
For Dollar General, sales increased 15.7 percent to $2.78 billion in the 2009 first quarter compared to the 2008 first quarter, according to a report released last week by the company. Same-store sales increased 13.3 percent for the quarter.
And Dollar General plans to build about 450 new stores and remodel or relocate another 400 around the country, though Dollar General spokeswoman Tawn Earnest said she did not know the company’s plans for expansion in the South Plains. Through May 1, the chain opened 104 new stores, remodeled or relocated 100 and closed four stores in fiscal 2009.
Other “dollar stores” such as Dollar Tree and Family Dollar are reporting similar increases in sales and plans for expansion this year.
Earnest said Dollar General recently relaunched its store brand, Clover Valley, in response to consumer demand for cheaper groceries at a lower cost than national brands.
Specifically, she said, demand for “consumables” – anything from dish soap to graham crackers – has grown in recent years.
Signs advertise more than 200 new food items offered at the Family Dollar at 34th Street and Avenue S.
Mark Montez, walking from Family Dollar with a bag of groceries, said he occasionally buys a bag of chips or noodles from the store. But he said he prefers to do most of his food shopping at traditional grocery stores such as United Supermarkets.
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