Dollar stores find fertile ground in Stark County
Shoppers are never far from a bargain.
Dollar stores, springing up in packed shopping centers and on neighborhood corners, beckon customers with promises of items at a steep discount. And they’re growing — it seems like every few months a new one arrives.
Stark County has more than 50 dollar stores, roughly one for every 7,500 residents. In the next week, at least two more stores will join those ranks.
A Dollar Tree is set to open Thursday at Cherry Avenue and Lawrence Road NE in Canton. A Dollar General at 3220 Mahoning Road NE in Canton will hold a grand opening celebration in October.
It’s a phenomenon seen nationwide. Dollar Tree and its subsidiaries, including Family Dollar, have more than 13,600 stores in the U.S. and Canada. Dollar General has more than 12,189 stores across 43 states.
HABITS
Discount stores have been growing about 3 percent per year, taking market share away from stores like Target and Wal-Mart, said Deborah Owens, associate professor of marketing and international business at the University of Akron.
That growth originally was driven by the downturn in the economy, as people turned to dollar stores as a way to cut expenses. Though the economy has rebounded, shoppers haven’t returned to their old habits.
“They realized it wasn’t a bad place to shop, so they continued,” Owens said.
Shopping at discount stores, like dollar stores and discount grocery chain Aldi, no longer carries the stigma it once did, she said.
Demographic changes also have influenced growth.
Younger shoppers tend to be smarter shoppers, Owens said. Instead of going to one store and buying everything, they visit different places, searching for the best value and the highest quality. For example, they might pick up bagels from a local bakery but buy dish soap at a dollar store and toilet paper in bulk on Amazon.
CONVENIENCE
Dollar stores are a “fill-in” store for many customers, said Dan MacDonald, a spokesman for Dollar General.
Often, shoppers aren’t doing their weekly grocery run at a Dollar General, but pop in throughout the week to pick up such last-minute items as cleaning supplies or milk — “the five or six items you might need on your way home,” he said.
The goal is convenience. Stores are small, generally 7,300 square feet, so the average customers gets out in less than 10 minutes, he said.
The aisles, small but packed, are filled with everything from cat food to clothing to scented candles.
“It’s quick and easy,” said Gina Latham of Canton, who was picking up aspirin and Halloween candy at a Family Dollar on Tuscarawas Street W, just minutes from her home.
Latham stops by several times a week to pick up essentials. The store offers many of the same brands as a big-box store, but at a better price and without having to fight crowds or long lines, she said.
“All the good stuff is here,” Latham said.
NEIGHBORHOOD
Latham’s Family Dollar is just down the street from a Dollar Tree and less than 2 miles from rival Dollar General. That competition is a win for shoppers, MacDonald said.
“We certainly do have some of our competitors close,” he said. “It really drives everyday low pricing for the consumer.”
When opening a new store, Dollar General considers a variety of demographic factors, including median income and the number of households. It also looks at how many people live within a 5-mile radius or 10-minute drive, MacDonald said.
Despite having numerous options, people tend to become loyal to one chain, Owens said.
People will go to the same store every time because it’s in a shopping plaza they usually visit or because it’s near their home. It’s the same reason rival drugstores can be located near one another or areas can support multiple coffee shops.
It’s about what’s easiest, she said. “People have really busy lives.”
NEW STORE
When a discount store comes to a neighborhood, it can benefit those residents.
A Dollar General opened earlier this year in the same neighborhood as the new Dollar Tree at Cherry Avenue and Lawrence Road NE in Canton.
The new store, which offers everything for $1, is in a location that’s accessible to the community, said Councilman Thomas West, D-2. “I’m pretty excited about having it there,” he said.
Many people in the area already shopped at Dollar Tree, but had to travel out of the community to get there. Putting one in a residential neighborhood means that those who most need it — folks with a fixed or limited income — can do so easily, he said.
The store will carry some groceries, such as milk and eggs, for $1, he said.
“It not only provides food and basic needs, but gives jobs to people who may not have them,” he said.
A typical Dollar General store employs six to 10 people, according to a news release from the company.
Dollar Tree did not respond to requests for comments for this story.
MORE TO COME?
Stark neighborhoods could be seeing more dollar stores soon.
The industry is expected to keep growing at about 2 percent annually until 2020, when it should level off, Owens said.
Dollar General has plans to open 740 stores this year and 900 more in 2016, MacDonald said. Stores also are expanding their offerings, stocking more variety in frozen and refrigerated foods and adding produce and meats at some locations.
There’s tremendous opportunity for growth, MacDonald said.
“You can get in, get what you need and very quickly get on with the rest of your day. We think we’ve found a formula that works for folks.”
Reach Jessica at 330-580-8322 or jessica.holbrook@cantonrep.com
On Twitter: @jholbrookREP
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