Heavy dollar store shoppers, who spend more during the shopping occasion and also shop more often, visit dollar stores about once every two weeks. Dollar stores also attract retired shoppers on fixed incomes. Geographically, dollar stores exist across the U.S., but are heavily concentrated in the South, and found in small towns and rural areas where lower to middle income families dwell. Dollar stores are popular with consumers because they offer everyday low prices everyday. For those who are watching their budgets and looking for bargains, items almost always cost less than in a department store or supermarket.
Simplicity is paramount when it comes to pricing at dollar stores.
For example, Dollar General carries over 4,000 SKUs, but only has 14 price points. The guarantee of everyday low prices and a simple pricing structure make for easy and enjoyable trips to the store. Consumers shop at dollar stores for everything from over the counter drugs, toys, snacks and candy, to cleaning supplies, toiletries, and cosmetics. Product assortments consist of brand names as well as generic. The wide selection and low prices keep the consumer coming back again and again.