A Profile of Dollar Store Shoppers

Dollar stores have become a regular shopping destination for the nation's consumers, and are competing with supermarkets and mass merchandisers as product destinations in some categories, according to a study by Meyers Research Center, the nation's leading provider of in-store consumer research.The findings are part of "Dollar Store Close-Up 2003," a study that examines the behavior, attitudes and decision-making patterns of dollar store shoppers.Dollar stores have become a regular shopping destination for the nation's consumers, and are competing with supermarkets and mass merchandisers as product destinations in some categories, according to a study by Meyers Research Center, the nation's leading provider of in-store consumer research.The findings are part of "Dollar Store Close-Up 2003," a study that examines the behavior, attitudes and decision-making patterns of dollar store shoppers."Dollar stores are fast becoming a retail force to be reckoned with. Retail industry analysts are predicting a growth rate of at least 5% per year over the next five years, and it's estimated that dollar stores will attain sales of $48 billion by 2007," explained Jeff Friedlaender, vice president of New York City-based Meyers Research Center."Our study results demonstrate why retailers and brands are seriously factoring in the dollar stores in their strategies today, just as they did in the 1990s with the emergence of price club formats," Friedlaender added. "More than 50% of consumers we surveyed are buying name brand products at the dollar store.""What we've found is that dollar store shoppers are making a regular habit of including dollar stores as part of their planned shopping for the week: 39% of the shoppers we surveyed are going once a week or more," Friedlaender explained. "For many brands and retailers, the dollar stores are becoming a viable competitor in the ongoing battle for share of consumer."Despite some common perceptions, dollar stores are not only drawing consumers on the lower end of the income scale. The study shows that nearly 75% of dollar store shoppers have annual household incomes greater than $30,000, and 44% have household incomes in excess of $50,000.Meyers Research Center's "Dollar Store Close-Up 2003" uses an "In-Store Intercept Category Management Research Program" to develop a detailed understanding of the demographic backgrounds and shopping behaviors of dollar store consumers.Data was collected in-store in 28 chain and independent dollar store outlets across 12 geographically dispersed U.S. markets. More than 1,000 consumers were interviewed. All interviews are conducted with consumers at the point-of-sale, immediately following their purchase decisions.Additional findings from the study include: When was the decision made to buy a certain type of product? More than half of product decisions (58%) are planned before entering the dollar store. But the 42% of decisions being made on impulse is higher than that found among shoppers in the supermarket, drugstore and even mass merchandiser channels. Why do shoppers shop there? Value and fun are among the top factors: 67% of shoppers interviewed said they shopped at dollar stores because they were fun to shop in, and 94% said dollar stores provided good value. What are they buying? Household cleaning products is the most popular category, with 69% of dollar store shoppers making a purchase. More than 50% of shoppers surveyed also buy batteries, paper products, candy, snacks and other food items, and health and bueaty aids.

A Profile of Dollar Store Shoppers

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