Tapping Into The Dollar Store Channel’s Resiliency
THE SECRET TO SURVIVAL

DOLLAR STORE PRODUCT LIST [Click Here]
 
bullet The secret to survival in this industry is to differentiate yourself from the competition.
bullet If you think about the concept that 20% of your customers make up 80% of your profits, a dollar section in a C-Store makes sense because it increases sales.
 

THE NEW COMPETITION
 
bullet Dollar stores are direct competitors to c-stores. They are growing and will continue to grow.
bullet Dollar stores are taking away C-store sales in candy, snacks and grocery items but as dollar stores have become larger and more sophisticated they now offer frozen and cooler items, along with eggs, milk, bread and other prominent C-store items.
bullet They are not dominating the market, however they keep nicking at C-store profits and as long as they continue to grow, C-stores should be aware of the dollar stores and tap into the dollar ring.
 

DOLLAR STORE FACTS

 
bullet The number of dollar stores almost tripled to 9,133 from last year.
bullet With lower income families and retirees continuing to make up a greater percentage of the population, there’s never been more demand for bargain havens such as .99 cent only stores.
bullet 56 Million U.S. households said they shopped in a dollar store in 2002 compared with 53 million in 2001.
bullet Analysts say dollar stores are benefiting from a change in consumer attitude that embraces bargain hunting and finds cheap chic trendy.
bullet Consumers only have a fixed amount of money to spend, if they spend it at your competition, they cannot spend it inside your store.
bullet Dollar General and Family Dollar are more diversified and offer core products at multiple low price points; Dollar Tree and 99 Cent Only stores average better gross margin with their fixed price points.

 

bullet

THIS IS A CRITICAL POINT, AND ONE THAT YOU SHOULD KEY IN ON!
bullet

FIXED PRICE STORES EARN MORE PROFIT THAN MULTI-TIERED PRICING STORES EARN.
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ADDING a smart selection of $1.00 pre-priced items will increase your sales and your profits. The key is to have the CORRECT selection.

 

DOLLAR SECTIONS VS. GROCERY SECTIONS
 
bullet The information on the next 2 slides were taken from our IDS computer system from some of our largest customers.
bullet These customers range from annual gross purchases of $1,225,000.00 up to $1,550,000.00. That means these accounts average purchases are about $25,000 per week. Using these very large accounts, we selected popular grocery items to analyze the movement and sales.
bullet Remember, these examples were taken from our premium customers, most customers will have LOWER sales and profits.
bullet Based on real customer data from a one year period, take 2 ordinary everyday grocery items and compare the gross profit you would make on these items to the gross profit of the 2 dollar day items and see what contributes more to your bottom line at the end of the year.

 

DOLLAR SECTION VS. GROCERY SECTION

GREEN BEANS:
Cost SRP Profit Unit Sales Per Year Annual Gross Profit
.61˘ .99˘ .38% 7 $2.66
 
SPAGHETTIO’S:
Cost SRP Profit Unit Sales Per Year Annual Gross Profit
.73˘ $1.05 .32% 12 $3.84

 

 

DOLLAR SECTION VS. GROCERY SECTION

HAIR ACCESSORIES ASSORTED:
Cost SRP Profit Unit Sales Per Year Annual Gross Profit
.65˘ $1.00 .35% 245 $85.75
 
ASSORTED HAIR CLIPS:
Cost SRP Profit Unit Sales Per Year Annual Gross Profit
.65˘ $1.00 .35% 198 $69.30

 

bullet Retailers can still carry top grocery items, but they need to realize that they have low profit items sitting on the shelf for a long period of time. Think about what a square foot of space in a C-store costs. Would retailers want a low profit item that sells only 7 times in one year or would they rather have an item 100, 200 or 300 times?

 

WHAT MAKES MORE MONEY?         WHAT MAKES MORE SENSE?

 

THE DOLLAR PROGRAM
 
bullet The dollar store program will not be as successful for the customer if they have less than 8 feet of dollar store merchandise along with POS material to support the program.
bullet The reason that City Sales suggests that the retailer start with no less than 8 feet of dollar store merchandise is because of the visual impact that the dollar area of your store will give to your customer. The dollar section will draw your customers to that area and increase the sales of that line.
bullet Retailers who try to get by with a minimal set will fail, retailers who do not set their store so that there is a HIGH AMOUNT of VISUAL IMPACT from the Dollar Store category will not increase their sales or profits as much as they could.
bullet This program requires retail commitment to the concept if they want to MAXIMIZE their retail profits!

 

 

PROGRAM DEVELOPMENT
 
bullet City Sales is working with one of the largest dollar store suppliers in the nation and the products selected have been TESTED and PROVED to be top selling DOLLAR items inside C-Stores.
bullet Many of these are NON-traditional items for C-Stores, but when sold in the context of a Dollar Store section within your store, they are proven to be better sellers yielding higher annual returns than many traditional items found in C-Stores.
bullet Large retailers like SEARS, Marshall Fields and LINENS & THINGS are embracing the concept of a Store within a Store. This program allows you to have a Dollar Store within your C-Store.
bullet This program requires retailers to understand that this is a well tested and proven list of 80 core products that make up a unified retailing concept! This program requires retailers to understand that this is a well tested and proven list of 80 core products that make up a unified retailing concept!

 

8 FT 5 TIER RISER DISPLAY OR INLINE DISPLAY
 
bullet City Sales suggests that you start with no less than 8 feet of dollar store items. The reason is that if you have a dollar section smaller than 8ft in your store, you will not have a good visual impact of having a dollar store line. Your customers will bypass the line thinking it is just random items that are thrown into a box. The items for the 8ft display will incorporate high ranked dollar store items and other items that will be both profitable to your bottom line and eye catching to your customer. These Items come packed as an assortment per case.

 
[EXAMPLE] ITEM LIST FOR 8FT DISPLAY

 

Hair Accessories Assorted Mini Trash Can Incense Tumblers Facial Tissue Handled Baskets 12pc Cutlery Set Assorted Jaw Hair Clips
Children's Foam Puzzle Hairbrush Cotton Swabs Plush Key Chain Colored Writing Tablets Plastic Scourers Coloring Book Bristle Sponges
Wire Baskets Note Pads Memo Pads Vinyl Pet Toys Assorted Natural Pebbles Tea light Candles Mini Flashlight Comb Set Assorted Cosmetics
Assorted Bracelets Foam and Felt Shapes Clothesline Rope Puzzle Book Bath Puff Assorted Plastic Bowl Scouring Balls Metallic Squares
Assorted Magnets Copper Scourers Gift Tissue Paper Gift Bags Assorted Colors Sisal Twine Iron Brush Floor Kids Soap Dish Clothespins

 

Contact your City Sales Representative For More Information

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DOLLAR STORE PRODUCT LIST

 

ITEM # DESCRIPTION SIZE
844910 BAB-O POWDERED CLEANSER 14 OZ 24/CASE
844969 BAG 40 GALLON TRASH/DRAWSTRINGS 5 COUNT 24/CASE
842732 BRAWN ALL PURPOSE CLEANER TRIGGER 32 OZ 12/CASE
842807 BRAWN BATHROOM CLEANER 17 OZ 12/CASE
842708 BRAWN CLEANER/BLEACH TRIGGER 32 OZ 12/CASE
842716 BRAWN DISINFECTANT WIPES 24/BOX
842823 BRAWN FABRIC FRESHENER 16.9 OZ 12/CASE
842773 BRAWN GLASS & SURFACE WIPES 24/BOX
842799 BRAWN GLASS CLEANER AEROSOL 20 OZ 12/CASE
842666 BRAWN GLASS CLEANER TRIGGER 32 OZ 12/CASE
842682 BRAWN GREEN APPLE ULTRA DISH 25 OZ 12/CASE
842740 BRAWN LEMON CLEANER 28 OZ 12/CASE
842815 BRAWN MILDEW STAIN REMOVER TRIGGER 32OZ 12/CASE
842690 BRAWN OCEAN FRESH ULTRA DISH 25 OZ 12/CASE
842674 BRAWN ORANGE CLEANER TRIGGER 32 OZ 12/CASE
842765 BRAWN ORANGE CLEANER 28 OZ 12/CASE
842781 BRAWN OVEN CLEANER 16 OZ 12/CASE
842724 BRAWN PINE CLEANER TRIGGER 32 OZ 12/CASE
842757 BRAWN PINE CLEANER 28 OZ 12/CASE
843623 DOLLAR DAY AUTO PROTECTION WIPES 30CT 24/CASE
844845 DOLLAR DAY FABRIC SOFTENER SHEETS 40CT 12/CASE
843615 DOLLAR DAY HOUSEHOLD WIPES 30CT 24/CASE
843656 DOLLAR DAY LEATHER GUARD WIPES 30/CT 24/CASE
843649 DOLLAR DAY TIRE SHINE WIPES 30CT 24/CASE
845834 DOLLAR DAYS ANT & ROACH SPRAY 5 OZ 33/CASE
845669 DOLLAR DAYS ANTI BACTERIAL LIQUID SOAP 27/CASE
841940 DOLLAR DAYS ASSORTED BRACELETS 60/CASE
841932 DOLLAR DAYS ASSORTED COSMETICS 60/CASE
849935 DOLLAR DAYS ASSORTED CUTLERY 51CT 24/CASE
841726 DOLLAR DAYS ASSORTED JAW HAIR CLIPS 28/CASE
842278 DOLLAR DAYS ASSORTED NAPKINS 38/CASE
845610 DOLLAR DAYS BABY LOTION 12 OZ 24/CASE
845628 DOLLAR DAYS BABY OIL 12 OZ 27/CASE
846188 DOLLAR DAYS BABY POWDER 15 OZ 15/CASE
845594 DOLLAR DAYS BABY SHAMPOO 15 OZ 24/CASE
845602 DOLLAR DAYS BABY SHAMPOO/CONDITION 15 OZ 24/CASE
841981 DOLLAR DAYS BATH PUFF ASSORTED COLORS 32/CASE
841858 DOLLAR DAYS BRISTLE SPONGES 27/CASE
842369 DOLLAR DAYS BUNGEE CORDS 48/CASE
845776 DOLLAR DAYS CITRUS SHAMPOO 15 OZ 24/CASE
841965 DOLLAR DAYS CLOTHESLINE ROPE 25/CASE
842096 DOLLAR DAYS CLOTHESPINS 28/CASE
845727 DOLLAR DAYS CLEAR STICK DEODORANT (BLUE) 48/CASE
845735 DOLLAR DAYS CLEAR STICK DEODORANT (GREEN) 48/CASE
842476 DOLLAR DAYS COFFEE MUGS 18/CASE
841825 DOLLAR DAYS COLORED WRITING TABLETS