Finance
January 1, Major Store Losing Shoppers: Surprising Reasons Behind the Decline
Life feels expensive these days with bills and grocery costs soaring. Typically, people would turn to dollar stores in situations like this.
However, recent data and news of store closures suggest this isn’t happening right now. Shoppers are abandoning Family Dollar and Dollar General, and there are a few reasons why.
Dollar General’s sales remain up, but not at the level analysts initially predicted. Shares of the company dropped over 30 percent in the last year.
Conversely, Family Dollar has never been as lucrative as Dollar General. “Family Dollar was never as good a business as Dollar General,” said John Strong, professor of business administration at William & Mary.
Despite the increasing cost of groceries and necessities, customers are avoiding some of the most affordable sellers of these items. Shoppers cite higher prices, quality issues, staff shortages, and the overall in-store experience as reasons for taking their business elsewhere.
A former Family Dollar shopper in Columbus, Ohio, said, “They lost their focus on who exactly their customer base was.” She also mentioned having to “maneuver around boxes in aisles” and items not being where they should be.
Increased competition in the value retail space is another major factor affecting dollar stores’ decline. Walmart has been drawing more customers, while discount grocery chain Aldi has also taken a share of shoppers in small towns.
Dollar stores have faced criticism for raising prices due to inflation. A Dollar General employee in Ohio mentioned that while lower prices drew customers in, the store was still unkempt and workflow was difficult. “It was impossible to get tasks done; there was never enough time to do them,” she said.
Experts believe the focus on growth caused dollar stores to lose sight of their operations and customer experience. “Dollar stores have to figure out how to improve the customer experience. Understanding your customers’ needs and how to service those needs is marketing 101,” said Michael Della Penna, chief strategy officer with InMarket.
As our loyal readers, we encourage you to share your thoughts and opinions on this issue. Let your voice be heard and join the discussion below.
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Russ
April 22, 2024 at 7:09 pm
Unlike Speaker Johnson and House republicans the patriots of this country understand the power of the purse. Bankrupt these businesses.
Patrick A Cross
April 22, 2024 at 7:19 pm
I never shop in dollar stores, because they’re completely crap
jo
April 22, 2024 at 7:26 pm
Stopped going there because the items I used to purchase are never in the store anymore. The products I liked are not being delivered. Also the price keeps going up and I can get the same stuff at other places for a few pennies more and save a trip to the Dollar Plus More Store now. They need to change the name. Also their return policy is terrible and the fact that they don’t automatically give receipts is a nuisance. That reflects their reluctance to have customers return faulty products…a real turn off.
Dennis
April 22, 2024 at 7:32 pm
I use Aldi’s and Grocery outlet, cheap stuff at those “Dollar” stores
Kathy Stringham
April 22, 2024 at 7:45 pm
You would get more people in if you would stock shelfs overnight like they used too. It is a pain to have to move around carts with stock for the shelves. Everytime I go into Dollar General I have to fight these carts because everything I need has one of these stupid standing in front of what I need. Also train your people on what is in your store. I ask about something I get I don’t know. They don’t even offer to see wheather they have it or not.
allan swank
April 22, 2024 at 7:49 pm
I purchase some 95% of my food and ‘consumables’ from Dollar General … and I will continue to do so, they save me a fortune.
M.A.White
April 22, 2024 at 7:57 pm
Walmart is many times cheaper than Dollar General. I have a Dollar General about a mile from me. I’ll go there to pick up a single item once in a while.