It Is a Changing World for Those Running a Dollar Store

Article by Bob Hamilton

It Is a Changing World for Those Running a Dollar Store – Business – Small Business

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Let’s face it, the world for those running a dollar store has drastically changed over the past years. There was a time when a tiny retail store could provide profits which were adequate to support an owner/manager. Now that just is not a realist expectation in the dollar business. In fact not only has the need for a bit larger store become a requirement for success, but even the format of a 99¢ or $ 1 store has started to move closer to the same path as was followed by the dinosaur.

So exactly what does the future hold for dollar stores? Read on for some of the potential hurdles those operating a dollar store will likely face sometime in the future:

• More and more cost pressurePrices on almost everything are creeping higher for those running a dollar store. In fact the pressure on profits is growing so strong that more and more store owners are exploring how to move from a retail price of 99¢ or $ 1 only concept to dollar plus to allow them to continue their business operation. This cap is especially difficult to deal with when the wholesale cost of virtually all the hottest selling items are approaching ever-closer to full retail. Obviously you cannot make a profit if your wholesale price is as much as you are selling those same items for.

• Tougher competitionThere are some extremely successful dollar store companies in the market place. They know the dollar discount business well, do a great job of managing their business, and in some cases they have established aggressive growth programs. Add to that the number of other retailers who are doing everything possible to compete for the dollar discount shopper and those operating a dollar store must step up their own performance to succeed.

• Bigger storesIt is shocking to see the size stores have grown to. Where once a profitable small family run store was easy to open and operate, things are changing. Now massive stores are becoming more and more common. In fact some shoppers make this an important factor they consider when examining your business versus other shopping options. Fair or not, their decision about returning to your store hinges in-part on just how big your store is. After all, a bigger store obviously offers the shopper a greater selection of products!

• Ever-wider variety of productsThese massive stores offer a gigantic number of different products, all in huge quantities. Careful consideration must be made to offer a broad assortment of the most in-demand consumables as well as other popular items. It takes room to accomplish this task. So once again, bigger stores can be better positioned win when the selection of merchandise offered is considered by shoppers.

Those running a dollar store must be fully aware of the market place and specifically the competition in the market place. The environment has changed, and continues to change. These changes are likely to continue as all who are running a dollar store whether it is a small single store or a massive chain seek the best ways to meet consumer demand while also generating a profit. While you don’t need a mega-store to succeed, you must develop and then successfully execute a plan to grow sales, cut costs and excel when compared to the competition.

About the Author

Are you interested in starting a dollar store? Visit http://www.openingadollarstore.com and be ready to have your whole view of dollar stores changed forever.

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Bob Hamilton

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