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Dollar store strategies for national brands

The evolving dollar channel


The retail landscape and consumer preferences appear to be shifting, possibly for good. Consumer product goods (CPG) companies looking to stay on top of these shifts should not ignore the dollar channel, in particular multi-price-point dollar stores. In serving the dollar channel, it is important for CPG companies to understand the differences between today’s core dollar store and non-dollar store shoppers, and tomorrow’s new dollar store shopper.

The consumer product executives we surveyed and interviewed seem to be realising this, albeit gradually. The increasing consumer affinity toward new and improved dollar stores has caught the attention of both retailers and CPG companies. The shift in executives’ views on the importance of different channels over the last three years is testimony to the significance of this trend.

Some consumer product companies have figured out the unique characteristics of the dollar channel, and have responded to the challenges of dealing with this growing channel in five distinct areas.

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