By Ken Soens
Dollar stores have always attracted a price conscious customer, but now a growing trend seems to be emerging. Many retailers in this segment are adding higher price points of $1 to $3, and as high as $5 for multiple sales. Dollar stores are changing in order to sustain, but they are not the only ones. Independent operators, mass merchants, grocery, hardware and drug chains have also found a need to include simple price points in their promotional merchandise mix, so a customer can evaluate the item and quickly determine whether or not they want to purchase it. This gives the retailer the edge they need in a competitive retail environment.
Increase bottom line
Value price merchandise does not conflict with in-line programs. It actually increases a store’s sales by giving the customer the option to purchase something less expensive, rather than walking out of the store and buying nothing at all. Demand from retailers for more closeouts, impulse items and products pre-packed in floor and counter displays is also up. Getting items on the sales floor with little labor adds dollars to the bottom line.
Cater to your customer
Dollar stores and value oriented retail buyers are adding higher price points of $1 to $3 to many key categories throughout their stores. As disposable income continues to shrink and customers on a fixed income are watching the bottom line, you just cannot afford to ignore this important customer base. Having more general merchandise and opening price point items offers convenience and one stop shopping to your customers that will keep them in your store.
To stay in tune with pricing trends, independent retailers should review trade journals, visit websites and seek out new vendors. In addition, they should attend industry trades shows throughout the year to stay informed of new items, closeouts or continuity programs. At the ASDLV show this month, look for vendors who provide value and variety, as well as multiple price point items. In particular, look for closeouts and seasonal merchandise to keep sales rolling throughout the year. Seasonal products drive sales, keep the store fresh and generate traffic. Customers will come back to see what is new.