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Dollar Tree can't be beat for things like cleaning supplies, commodity-type CPG items like soap and seasonal decorations-- but those items likely aren't where t
by vgeek 5y ago
Dollar Tree can't be beat for things like cleaning supplies, commodity-type CPG items like soap and seasonal decorations-- but those items likely aren't where they make their money (they average a 30% GM, imported trinkets will have higher margin but lower volume than consumer staples). I've spoken to managers at multiple locations and the consensus top category by volume is candy, followed by paper goods. After that, the responses tend to vary.
Things like food are already a bad deal when compared to standard retailers-- they are typically smaller quantities at a much higher price per unit, and the products they carry are more processed so as to reduce costs and increase shelf-life. Then when a 1:1 comparison is made, they are often 30-50% more expensive (e.g. can of chunk light tuna for $1 vs $0.65 or less at Aldi). Going the route of 99 Center or the fast growing Five Below chain where they sell items for under $3 or $5, but with better quality items would have been an interesting approach, but that probably encroaches too much on their "up-market" Family Dollar locations? All being told, I wonder the price elasticity of candy and hyperprocessed foods are.
- jliptzin 5y agoSure, if you have time to wait on a huge line. Every time I find myself in a dollar store there’s one cashier serving dozens of angry people lined up to checkout. Whatever deal I might be getting isn’t worth my time to actually wait to pay.
- tombert 5y agoI think this is highly variable between stores. When I lived in Dallas, the line to check out at Dollar Tree was ridiculous, but the one I live near in Brooklyn typically has multiple lines with a few cashiers working. I don't think I've ever waited more than 15 minutes, and typically I wait less than five.
- qubitcoder 5y agoIf I have to wait in line at all, it's 99% a no-go. Add convenient self-checkout with wireless payments, and you've got my business. I wouldn't normally stop at CVS, but find myself doing so regularly. Why? Because there's no line. I can walk immediately to the items I need, then quickly scan them, tap my watch and walk out. It's easy, fast, and efficient. Nowadays, waiting in line is a frustrating anachronism. The exceptions would be higher end stores like Publix that actively guide customers into the fastest checkout lines. But when purchasing a smaller quantity of items, self-checkout is most certainly preferable.
- tombert 5y ago> they are typically smaller quantities at a much higher price per unit I think that's true throughout most of the country, but in NYC I actually think Dollar Tree is a fairly good deal. They sell the same little frozen pizzas (that I'm addicted to for some reason) as the C-Town a block away from me, but for half the price. I think that is largely because NYC is ridiculously overpriced to live in.