Dollar Stores are a Holiday Shopping Destination as More Consumers Frequent Them, Reports NPD
More than 4 in 10 consumers said they plan to shop at a dollar store during this holiday season, according to a recent survey conducted by The NPD Group*. NPD's Checkout, a receipt mining service, reveals that dollar stores, like Dollar General, Dollar Tree, and Family Dollar, are picking up in popularity, with the number of buyers increasing 3 percent in the 12 months ending October 2018, compared to last year.
PORT WASHINGTON, N.Y., Dec. 20, 2018 /PRNewswire-PRWeb/ -- More than 4 in 10 consumers said they plan to shop at a dollar store during this holiday season, according to a recent survey conducted by The NPD Group*. NPD's Checkout, a receipt mining service, reveals that dollar stores, like Dollar General, Dollar Tree, and Family Dollar, are picking up in popularity, with the number of buyers increasing 3 percent in the 12 months ending October 2018, compared to last year.
"Dollar stores' old bargain-based reputation is now more about value and variety, expanding their reach among consumers," said Marshal Cohen, chief industry advisor, The NPD Group. "Especially during the holiday shopping season, time-starved consumers are attracted to one-stop retailers that help them minimize the surge in their spending."
Over the past year, despite no real change in the average basket size, the increase in brick-and-mortar dollar store buyers has been further bolstered by an increase in the average spend per buyer from $165 to $171. The result is 7 percent growth in overall consumer spending at these retailers, according to NPD's Checkout information.
Consumers of all income levels and age brackets are shopping at dollar stores. Nearly a third of dollar store spending comes from households with incomes of $100,000 and higher. The spending distribution among the four lower income brackets is fairly evenly distributed, with the second highest share coming from $25,000 to $49,999 income households. Older Gen Xers, between 45 and 54 years of age, are the primary dollar store buyer, representing 30 percent of spending. However, younger consumers are also engaging with dollar stores.
"The successes dollar stores are seeing at brick-and-mortar, and watching how it unfolds as the holiday season wraps up, will tell an important story about the state of retail," added Cohen. "In a world where online continues to threaten the livelihood of physical stores, dollar stores are proving brick isn't dead as long as it delivers the right balance of value to the consumer."
*Source: The NPD Group / November 2018 Omnibus
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About The NPD Group
NPD offers data, industry expertise, and prescriptive analytics to help our clients grow their businesses in a changing world. Over 2000 companies worldwide rely on us to help them measure, predict, and improve performance across all channels, including brick-and-mortar and e-commerce. We have offices in 27 cities worldwide, with operations spanning the Americas, Europe, and APAC. Practice areas include apparel, appliances, automotive, beauty, books, B2B technology, consumer technology, e-commerce, fashion accessories, food consumption, foodservice, footwear, home, juvenile products, media entertainment, mobile, office supplies, retail, sports, toys, travel retail, games, and watches / jewelry. For more information, visit npd.com. Follow us on Twitter: @npdgroup.
Checkout delivers the most comprehensive view of consumer purchase behavior for general merchandise categories, across all retailers over time, to help you understand how to adjust your marketing to fuel growth. Checkout E-commerce offers the most complete and accurate view of the online channel – 600+ e-commerce retailers including Amazon, Walmart, top industry specific retailers, direct-to-consumer and emerging players. Information is collected from more than 3 million consumers, through data provided by our partner Rakuten Intelligence and NPD's own proprietary receipt-harvesting mobile phone app.
SOURCE NPD
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