News and Events
Dollar Stores Set For More Growth
RCS Senior Vice President Spence J. Mehl talks to Retail Traffic about trends related to the growth and expansion of dollar stores.
Feb 23, 2011 Retail Traffic Elaine Misonzhnik
A $7.6 billion buyout offer for Family Dollar Stores, Inc. is just the latest sign that this once-maligned corner of the retail world continues to gain respectability.
Dollar store sales have outperformed many other retail segments in recent years and the major players in the space continue to expand at a brisk pace. Moreover, some dollar store chains are expanding grocery offerings and experimenting with grocery-only concepts, which will make them even greater competitors with traditional supermarkets.
Family Dollar has already been expanding at a brisk pace. In its fiscal 2011, the retailer plans to open 300 new stores, an increase of 50 percent compared to fiscal 2010. The chain has also been investing more money and devoting more space to groceries, a strategy that has been helping dollar stores steal market share from Walmart, according to Spence Mehl, senior vice president with RCS Real Estate Advisors, a New York City-based retail real estate consulting firm.