Don’t look now but your neighbors, their children, and grandparents aren’t shopping at Publix, Kroger, or Safeway as often as they used too. So, where is everyone going? The Dollar store of course. The NPD Group’s Shopping Activity Services report found that “Dollar store shopping visits were up 14% this past quarter while the rest of the brick-and-mortar retail market was down 4%.”
Regular readers of this blog know that Foodservice Solutions® Grocerant Guru™ has documented the increase in fresh food items now offered within the Dollar store sector time and time again over the past 7 years. That said a 14 percent increase is a big number for any industry, but one with 30,000+ stores that number becomes even more impressive.
The NPD report found “Three-quarters of all shoppers in the dollar store channel convert to purchase on each visit, and the amount they spend is up 3% on average since last year. In the past two years, the dollar store channel shopper has become younger, with 50% under 45 years of age, compared to 42% two years ago.”
Millennials are omni-channel and omnipresent age group also seeking instant gratification, discovery, and at the lowest price, which is why younger consumers are also increasing their dollar store visits.
Legacy fresh food retailers the ilk of Publix, Kroger, and Safeway must be mindful that as more and more Ready-2-Eat and Heat-N-Eat fresh prepared food items are added within the Dollar store sector consumer adoption is sure to follow. Food customer migration is underway and consumers are migrating to fresh prepared grocerant niche food.