Dollar Stores See Largest Increase in Shopping Visits Among Brick-and-Mortar Retailers, The NPD Group Reports

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Millennial Shoppers Increase Overall Brick-and-Mortar Visits

Dollar store shopping visits were up 14 percent this past retail quarter (May 2014 – July 2014), in a brick-and-mortar market that was down 4 percent overall, according to Shopping Activity Services, the latest report from global information company, The NPD Group.

While the rate of decline for brick-and-mortar shopping visits was softened in the most recent quarter compared to the two previous quarters, the dollar store channel continued to see the largest year-over-year share increase in shopping visits, likely driven in part by new store openings.

“Not many other retailers are opening new stores, focused instead on taking advantage of those already in their stores and maximizing conversion to purchase, as well as expanding their online presence,” said Marshal Cohen, chief industry analyst, The NPD Group. “Consumers walk into a dollar store with the intention to buy, not to browse, and almost always walk away with something. In addition, dollar store traffic has been increasing over the past few years because they have expanded their selection of products, making the channel even more useful and pleasing to price-savvy consumers.”

Three-quarters of all shoppers in the dollar store channel convert to purchase on each visit, and the amount they spend is up 3 percent on average since last year. In the past two years, the dollar store channel shopper has become younger, with 50 percent under 45 years of age, compared to 42 percent two years ago.

Younger shoppers are walking through more dollar store doors, but the 16-24 age group in particular has increased its number of overall brick-and-mortar visits, with 11 percent growth among males, and 4 percent among females. This trend was also evident in the previous retail quarter.

“Millennials are increasing their activity in the market, because as much as online and mobile channels are ingrained in their brain, shopping is still a social behavior for this group. Seeing and touching, as well as researching and deciding where to purchase a product, are all important aspects of their shopping experience,” said Cohen. “This omni-channel and omnipresent age group also seeks instant gratification and at the lowest price, which is why younger consumers are also increasing their dollar store visits.”

About Shopping Activity Services
Shopping Activity Services is a quarterly market update that provides critical insights into shopping activity occurring in the general merchandise marketplace. Core metrics of the service include shopping visits, shopping conversion and average spend, with insights into market basket and cross shopping behavior.

About The NPD Group, Inc.
The NPD Group provides global information and advisory services to drive better business decisions. By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth. Sectors covered include automotive, beauty, consumer electronics, entertainment, fashion, food / foodservice, home, luxury, mobile, office supplies, sports, technology, toys, and video games. For more information, visit and Follow us on Twitter:@npdgroup.

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Marissa Cox
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