F. Scott Fitzgerald, author of “The Great Gatsby,” is reported to have said to Ernest Hemingway: “The rich are different from you and me.” Hemingway responded with, “Yes, they have more money.”
I am sure the rich are still different than you and me, but there is one thing we all have in common, apparently we all shop at Dollar General, Dollar Tree, and Five Below. Yes, the rich have discovered the dollar stores.
That’s according to an excellent Wall Street Journal article by Rachel Wolfe. Entitled “One-Percenters Keep Shopping at the Dollar Store,” it’s all about the increase in affluent shoppers visiting stores they once turned their noses up at.
Dollar General, Aldi, Five Below, Family Dollar, and Dollar Tree are just some of the chains benefiting. How significant is the shift? According to Rachel Wolfe in her Wall Street Journal article,
Households with six-figure incomes are 15% more likely to say they would shop at dollar stores than they were last June, going from 39% to 45%, according to daily surveys from Morning Consult of about 50,000 Americans.“One-Percenters Keep Shopping at the Dollar Store,” Rachel wolfe, Wall street journal, June 19, 2023
So the question that naturally arises is: “Do you include the dollar stores in your account base?” If you don’t and think your products are too expensive to sell in a Dollar General or a Family Dollar, you may want to think again.
Why? Because Covid and our current bout with inflation have changed the retail landscape. The very wealthy, those who drive Mercedes and BMWs, have discovered the dollar store and the pleasure of finding a great price for an ordinary product. It’s more than a fling. It’s a full-fledged love affair.
Smart toy companies will want to visit these stores and see what they are selling, not just in the toy department but all of the areas of the store. Doing so will produce an education in what types of toys and what price points will trigger sales at these chains that, between them, have 46,106 stores (I added them up).
Those who predicted the demise of bricks and mortar will be disappointed. The dollar stores are just getting started.