The Ins & Outs Of Dollar Stores

THE INS AND OUTS OF- dollar store DOLLAR STORES new Sources: wisegeek, Forbes, dollarstoreservices, Wikipedia, neilsen THE DOLLAR STORE CUSTOMER Dollar stores are adding outlets and boosting their offering of name-brand products to lure shoppers away from big box stores. Sstores Dollar store sales by annual household income 45% 47% 8% Walmart Within the top Dollar Store channel retailers, almost 8,500 stores have been added since 2001. Everyone talks about low medium income high Walmart's rapid expansion, but their store count only grew by 1,024 stores $0 $30K $99.9K since 2001. Dollar stores growth from 2001 to 2009: +54% growth 2001: 13,151 2009: 20,253 How Do DOLLAR STORES SURVIVE? Buying bulk Low Overhead and Salaries Generic Labels These items are specially manufactured for such stores, using cheaper ingredients and processes and/or the product was manufactured cheaply for a foreign market but was then re- imported by an unauthorized distributor (grey market goods). Buyers for dollar stores can often Employees and managers of dollar stores negotiate a deal directly with manufacturers. The wholesale cost per item can be slashed to literally pennies if same time. Dollar store owners often the buyer agrees to accept bulk shipments or absorb shipping expenses. keep shorter hours of operation. are often cross-trained to handle a number of duties, sometimes at the rent space in less-desirable locations or xbdjgk ORIGINS 5c in 1913 when adjusted for inflation is $1.15 in 2009 dollars The concept of the variety store originated with the five and ten, nickel and dime, five and 5¢ 10¢ 25¢ ► 50¢ ¢. S WOOLWORTHS dime or dimestore. The originator of the concept may be Woolworth's, which began in 1878 in Watertown, New York. WORLD OF DOLLAR SHOPS MAX20 Norway Bcë no 10 py6neň Russia EURO STORE Ireland EUROSHOP Germany POUND SHOP UK MAGASIN À PRIX UNIQUE France 100 FORINTOS CHungary STORE A USA TODO A 100 ESpain GHAZALI's HOMESTORE Pakistan 100 YEN SHOP O Japan 2 RIYAL SHOP Gulf Countries 5 v 10 OMexico 25LE SHOP Egypt 10-DOLLAR SHOP DHong Kong 49 & 99 SHOP India DÓLAR Y ALGO EXTRA EPuerto Rico 100 FILS SHOP CKuwait LOJA DE 1,99 O Brazil $2 SHOP Australia and New Zealand TODO POR 2 PESOS Argentina SMALL DOLLAR STORE ILLUSTRATION According to Dollar Store Services Summary of fixed costs Summary of variable costs ranges as a percentage of sales Estimated annual Cost estimate Abc Det ehi (1000 sq ft)* $20,000 $1,200 $1,400 $1,450 $600 $1,000 $12,000 $800 $1,400 $4,400 $300 $44.550 "Used for illustration purposes only. *"Taxes not included for this illustration. fixed costs Abe Dot ch Managers wage Health Total [62.70%] Merchandise [53.00%] Range as a % of sales 53.00% 4.00% 1.30% 0.40% 4.00% 62.70% Insurance Merchandise Merchandise Wages Payroll tax Workers compensation Freight Total Electric Telephone Personnel Rent Supplies Advertising Depreciation Other Total** Freight [4.00%] Payroll tax [1.30%] Workers compensation [0.40%] Wages [4.00%]. "Used for illustration purposes only. If you desire (profit) Annual sales Average daily Hourly sales required $33.18 $38.31 $45.33 $5.49 $71.53 Customers Profit before sales rqd required $119,437 $137,926 $163,187 $199,776 $257.414 per hour rqd taxes $332 $383 $453 $555 $715 $0 $6,896 $16,319 $29,966 $51.503 even 4.1 4.8 5% 10% 15% 20% 5.7 6.9 8.9 TIPS FOR SAFE SHOPPING AT THE DOLLAR STORE Vitamins or other health supplements Kid's toys and jewelry Legitimate products have an eight-digit Drug Items made with a high percentage of lead are Identification Number (DIN), a Natural Product typically heavy for their size. If it's not coated, the Number (NPN ) or a Homeo-pathic Medicine item may leave a gray mark on a piece of white Number (DIN-HM) on the label and packaging. paper when rubbed against it. occce, %24