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COLUMBUS, Ohio -- Leading dollar stores practiced sound business strategies before the recession that put them in a position to do well, and now improvements in shopping experience, store operations and retail management fundamentals will likely make them viable even after the economy recovers, according to a new report by independent retail research and intelligence firm, myRetailPOV. According to the report, entitled "Value Channel Outlook: Small Stores, Big Opportunity," an increasing number of fresh-looking dollar stores and key factors of value and convenience will appeal to multiple shopper segments in different geographic areas.
"Plenty of growth opportunities remain for the dollar store channel -- growth both in the store base and digital space," said Sandra J. Skrovan, founder of myRetailPOV and author of the report. "The six biggest dollar store/value chains will add about 6,500 stores between 2010 and 2015 -- that's almost twice as many as opened between 2005 and 2010."
For retailers, it means more competition, especially price competition, she added. "For consumer goods manufacturers, it means a lot more doors in which to place products and more eyes to see them,” she continued. “For shoppers, it's definitely a win-win."
Data released from myRetailPOV shows the top six dollar store chains are predicted to grow at an annual pace of 7.6 percent through 2015, resulting in more than 29,000 units by that year. In 2010, approximately 22,600 dollar stores were in operation.
The report also predicts that the West Coast is prime for dollar store expansion, and that more attention and shelf space will be devoted to non-food household basics such as health and beauty items, and baby and pet supplies.