Can you guess how many stores Dollar General and Family Dollar built in 2012? Try 1,100.
That counts as rapid expansion. And that’s especially true in a retail market that’s still sluggish.
And don’t expect the dollar store drive to slow any time soon. Northbrook, Ill.-based The Boulder Group, an investment real estate service firm, says that consumer demand for dollar stores is only growing. And in its latest research report on the dollar-store industry, the company predicts that dollar store franchises will continue to pop up across the United States in rapid-fire fashion.
“Dollar Store customers are attracted to the low cost of the goods sold as well as the convenience of the smaller store format,” wrote Boulder Group researchers.
Dollar Stores are even becoming competitors with grocery stores, according to the report. Boulder Group researchers write that a growing percentage of consumers are purchasing grocery items at dollar stores.
More than 390 dollar stores were on the market as of the third quarter of this year. According to Boulder Group, the median asking price of Dollar General stores is $784,500, or $87 a square foot. The median asking price for Family Dollar stores is $993,008 or $118 a square foot.