CHARLOTTE, N.C. (AP) — family Dollar shop Inc. Plans to offermore groceries in the stores and also begin agree food stamps, amove aimed in ~ making the north Carolina-based discount chain alower-priced contender to convenience stores.
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Through adding much more perishable food come the timeless dollarstore product mix, Avondale partners analyst Patrick McKeever saidFriday the strategy may grab customers that are searching for quickshopping stops between larger grocery trips.
That convenience is a means to collection Family Dollar except “bigbox” stores favor Wal-Mart, which also compete for low-incomecustomers, McKeever said.
“A consumer goes to Wal-Mart to buy food in a stocking-up trip,”McKeever said. “They room not going over there to just buy milk, a bag ofpotato chips and also orange juice.”
Howard Levine, household Dollar’s chef executive, said the idea isto sell low-cost item in a practically shopping environment.
“We want to produce a shopping atmosphere that enables ourcustomers straightforward access, wherein they deserve to park right in front of thestore and also get in and also out, however still reap a compete pricingenvironment,” the told The Charlotte Observer.
In order to expropriate food stamps, household Dollar should sell milk.That way refrigerated cooler situations must be set up — somethingFamily Dollar has actually done in 3,800 that its shop so far.
“Extending the product mix through a minimal assortment ofrefrigerated goods and dairy items must drive incremental salesvolume for the dollar store segment,” stated Edward Jones retailanalyst Stephanie Hoff in a study note.
In budget 2007, which started late last month, the company says itwill boost its food assortment in 1,300 stores and accept foodstamps in 750 stores. That will also install coolers for perishablegoods at an additional 1,000 stores.
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The addition of food stamps should further boost food salesbecause numerous of the this firm customers can afford come buy groceriesonly by utilizing food cards, household Dollar spokeswoman Kiley Rawlinssaid.
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