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Retail Top 100 2012, No. 80: Family Dollar

May 29, 2012

While other retailers have closed stores and struggled with sales, dollar stores have been in growth mode as consumers attempt to stretch smaller incomes or trade down in spending. Unlike Walmart Supercenters, dollar stores serve neighborhoods in a small footprint, sell smaller items, and are convenient to lower-income shoppers who walk or take the bus. According to Nielsen data, 55 percent of Family Dollar customers have an annual gross income of less than $40,000 and 24 percent make less than $20,000. Although lower incomes make up a majority of the customer base, a greater number of those who can afford to shop elsewhere are finding the convenience factor makes dollar stores an attractive alternative. Family Dollar added about 300 stores in 2011 after same-store sales grew 5 percent. The second-largest U.S. dollar store chain plans to add as many as 500 stores in 2012 to accelerate sales growth.

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