Photo: By judybaxter on Flickr
Dollar stores are booming in a struggling economy, and one of the big boys of the industry is doing so well it’s planning another period of explosive growth, reports Gail Hoffer and Drug Store News.It will open 625 stores and hire around 6,000 employees over the course of 2012. The discount chain already has about 9,800 stores spread across 38 states, and it’s revamping 550 of those existing outlets, while building a new distribution centre.
Dollar General has adopted an aggressive growth strategy since the start of the recession. This marks the fourth straight year it has opened hundreds of new locations, and the chain has created more than 21,000 jobs since 2009.
It’s not all about the economy though. Dollar General had to be smart in its expansion strategy too — after all, Walmart is its biggest competitor, and the world’s largest retailer has had similar success recently.
It thrives on hitting markets that Walmart hasn’t taken over, such as small towns that can’t support one of Walmart’s massive big box stores. It also competes with the other big dollar store chains, like Family Dollar. The hybrid concept — somewhere between a giant discounter and a small dollar store — has worked admirably.
Plus, while dollar store marketing plays a significant role in getting people through its doors, Dollar General is actually also a clear leader in price over both Walmart and its dollar store compatriots.
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