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Industry Outlook: Dollar Stores

Published by: Retail Forward, Inc.

Published: Aug. 1, 2006 - 24 Pages


Table of Contents



Point of View


Strong Growth for Market Leaders


Slower Growth Ahead


Market Saturation Remains Years Away


Core Shoppers Being Squeezed


Same-Store Sales Lag Other Channels


Troubling Trends in Financial Performance


Investing in Future Infrastructure


Data Appendix

Abstract

Retail Forward’s outlook for dollar stores and other small-format value retailers is one of cautious optimism. The format fills a unique niche—it’s small, convenient and value-oriented—and maintains a sizeable contingent of regular shoppers. Some key opportunities, e.g., continued store expansion, improving same-store sales and increasing basket size remain. Yet some challenges, e.g., profitability pressures, waning shopper interest and intense competition, are clouding the outlook. Retail Forward forecasts channel sales to grow at a more moderate pace in the coming five years than in the past five.

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