Once mocked, they are booming
Garth A. Rose
There was a time when some South Floridians scoffed at shopping at dollar stores. However, as more families struggle with relatively low incomes they are turning to these low-price bargain stores. And, as the demand for bargains increase, dollar stores have sprung up across the region.
They include national chains like Dollar Tree, Dollar General and Family Dollar. Dollar Tree currently has over 90 stores in South Florida. Florida is one of their largest markets, second only to California.
Today’s discount retail has come far from its past of mangy products and dinky layouts. Many discount chains have overhauled their stores, including larger food selections, more health and cosmetic products and even pharmaceutical services.
“The image of dollar stores has changed dramatically over the years,” says consumer analyst Paula Dalton of West Kendall. “Dollar stores are now reputable enterprises, and similar to the Woolworth chain of the past. There are over 30,000 dollar stores in the US today, a 25 percent growth rate since 2011. This exceeds the growth of Wal-Mart which has grown some 20 percent since 2011.
”Dalton notes however that it’s the availability of dramatically-reduced prices that attracts new clients – often millennials setting up house, and shoppers who previously shunned dollar stores for traditional retailers.
“The attractive prices dollar stores offer has a strong pull on customers,” says Dalton. “Plus, the quality of their merchandise has improved. These stores definitely meet the needs of customers with limited cash in their pockets.”
Dalton predicts that competition from these discount stores could weaken sales from traditional retail and department stores.
“To be profitable, most of the traditional stores catering to local consumers will need to cut prices to attract shoppers. This is what dollar stores do.
”Miami resident, Tammy Saunds, said in the past she mocked her sisters for shopping regularly at dollar stores, but now confesses to be a regular customer.
“These stores now have such a wide variety of goods of improved quality, that meets the needs of people who are hurting financially.” says Saunds.
“I now purchase toiletries, snacks and kitchen-ware at dollar stores.”
This recent boom seems like a renaissance for the typical American discount store, originally known as “dime stores”, which have a long history of serving consumers during harsh economic times since the 19th century.
Dime stores grew in popularity after the American Civil War, selling a variety of inexpensive goods, meeting the demands of consumers who couldn’t afford the high inflationary prices of wartime.
