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        Dollar & Other General Merchandise Stores Industry Profile

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        Excerpt from Dollar & Other General Merchandise Stores Industry Profile

        Companies in this industry sell a variety of merchandise, including consumables and housewares, through physical retail locations. Major companies include Dollar General and Dollar Tree (both based in the US), along with Dollarama (Canada) and Poundland Group (UK).

        The dollar and other general merchandise stores industry in the US includes about 41,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $85 billion. Industry leaders Dollar General and Dollar Tree (including Family Dollar) together operate more than 31,000 stores and had combined sales of about $40 billion.

        COMPETITIVE LANDSCAPE

        Demand is driven by consumer spending, particularly among less affluent consumers, as most companies target the lower- to middle-income demographic. The profitability of individual companies depends on their ability to effectively locate stores and to maximize their revenue per square foot. Large companies have advantages in purchasing and in negotiating lease arrangements. Small companies can compete effectively by locating in a previously untapped market. The US industry is highly concentrated: Dollar General and Dollar Tree together account for nearly half of industry revenue.

        Dollar stores compete not only within their industry, but also with mass merchandisers, grocery stores, drug stores, and convenience stores. Industry leaders Dollar General and Dollar Tree have moved aggressively into the convenience store arena with smaller-format stores, beverage bars, coffee stations, and grab-and-go sandwich offerings. (Mass merchants Walmart and Target have also launched smaller-format stores in ...

         
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