Dollar & Other General Merchandise Stores

Dollar & Other General Merchandise Stores

Brief Excerpt from Industry Overview Chapter:

Companies in this industry sell a variety of merchandise, including consumables and housewares, through physical retail locations. Major companies include Dollar General and Dollar Tree (both based in the US), along with Dollarama (Canada) and Poundland Group (UK).

COMPETITIVE LANDSCAPE

Demand is driven by consumer spending, particularly among less affluent consumers, as most companies target the lower- to middle-income demographic. The profitability of individual companies depends on their ability to effectively locate stores and to maximize their revenue per square foot. Large companies have advantages in purchasing and in negotiating lease arrangements. Small companies can compete effectively by locating in a previously untapped market. The US industry is highly concentrated: the four largest firms account for about 70% of the industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major product categories include: candies, prepackaged cookies, and snacks; household cleaning supplies; household soaps, detergents, and cleaners; and soft drinks and nonalcoholic beverages which all account for about 20% of the industry's revenue. Food dry goods and other food products and household paper and plastic products account for about 15% of the industry revenue.