This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

U.S. Has More Dollar Stores Than Drugstores

NEW YORK ( MainStreet) -- Dollar stores are taking over the nation.

According to a report from real estate services company Colliers International, the four big national chains -- Dollar General (DG), Dollar Tree (DLRT), Family Dollar (FDO) and 99 Cents Only Stores (NDN) -- operate approximately 21,500 locations in the U.S.

Dollar stores are taking over the U.S., now operating more units than the major drugstores.

That combined total surpasses that of the nation's three biggest drugstore chains: Walgreens (WAG), CVS (CVS) and Rite Aid (RAD), which collectively operate 19,700 locations.

The report concludes that the recession led consumers to visit dollar stores in lieu of drugstores, supermarkets and gas stations since their prices were much lower. The dollar store chains are also able to fill a void in smaller markets, since big box stores such as Wal-Mart (WMT) and Target (TGT) typically carry "onerous real estate requirements."

The average dollar store occupies a footprint of 7,000 to 10,000 square feet, although the report notes that some prototypes are larger (around 20,000 square feet). Wal-Mart and Target stores, comparatively, range from 120,000 to 250,000 square feet, the report says.

The dollar store onslaught is expected to continue, according to Colliers, with the four major chains adding units in 2012.

"The convenience they provide -- bringing better products at lower prices closer to the consumer -- helps dollar stores better serve existing customers and attract new ones," Ann Natunewicz, national manager of U.S. retail research for Colliers International, said in a press release. "Retail is habit-forming; the longer shoppers patronize a particular store or category, the more likely it is to become a permanent shopping destination."

What do you need to know before hitting up your local dollar store? Find out in our article on how to shop a 99-cent store.

>To submit a news tip, email: tips@thestreet.com.

Follow TheStreet.com on Twitter and become a fan on Facebook.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%
YHOO $44.52 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs