Newsletter

Spotlight on Closeouts & Promotional Goods

Year after year the dollar store industry has grown beyond expectations. While consumers are shopping at dollar stores more often now then ever before they have become more savvy shoppers. "The dollar store customer has become more sophisticated," said Mark Martinchek, director of retail marketing at Kinney Drugs. "You can't just have a lot of cheap stuff and expect people to pick it up. It has to provide value".

Many stores have picked up on this trend by focusing on promotional "speed isle" merchandise rather than the staple household items causing more excitement and loyalty among consumers.

Seasonal merchandise, once an afterthought in the industry has come a long, long way. It is now, in the words of one vice president of marketing for a large and fast-growing drug chain, "a store brand differentiator," a vast area of opportunity for creating unique promotions or product collections that no one else has and no one else can advertise.

Dollar stores that have separated themselves from the C-store industry have continued to prosper while those offering not much beyond chemicals, HBA & consumables as the main focus of their stores have found it very hard to compete against the larger chains such as Wal-Mart, Target and Walgreen?s.

Focusing on Value, Selection and impulse has played a major role in the evolution of the dollar store industry. Another facet producing great results has been Novelty goods. Key chains, Plush, squish balls, light up yo-yo's and slime filled jars provide retailers not only unique and exciting product but also higher margins.

Aaron P. Brown
Oceanis Inc.