Pound/dollar stores
Pound/dollar stores
Business is booming at dollar stores in the US such as Dollar General and Dollar Tree.
Much of the increase is due to the poor economy as financially-challenged consumers looking to save money wherever they can. However, Nielsen reports that while lower income shoppers still represent the core business, high-income shoppers spent 18% more at dollar stores in the second half of 2008 compared to the prior year, and that growth at these stores is outpacing other shopping channels at both and high and low income levels, attracting an estimated 65 million US consumers in 2008.
In the UK, pound shops such as Poundland and Poundstretcher are also booming during the economic downturn, benefitting from a widening customer base as well as a growing number of suppliers as they buy up stock from companies in administration.
Poundland chief executive Jim McCarthy said: “We are the success story of the recession, getting more and more posh customers. They used to boast how much their houses have gone up, or how much their cars cost. Now they throw dinner parties to brag how much they’ve saved on loo roll.”
Tuesday, 09 June 2009 12:08