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How, when, and where we shop is of central concern to several State Chamber members who serve on the Delaware Retail Council, our affiliate of the National Retail Federation.
Retail is central to all Delawareans—even those not employed in the retail sector. I was struck by a headline this morning on CNBC that flagged the troubles dollar stores are presently experiencing. I must admit, I have a Dollar General not far from my home in the City of New Castle, and I grab things from there regularly. In a story titled, “The American Dollar Store has fallen on hard times,” I was surprised to learn that “Family Dollar has announced the closing of 1,000 underperforming stores, Dollar General’s growth has slowed from earlier projections."
Inflation, workforce shortages, product and supply chain disruptions, and greater competition from other retailers has begun to stress these local retailers. Professor John Strong from the College of William and Mary notes, “Dollar Tree and Family Dollar are two very different stores with vastly different customer bases, and trying to merge them has proven challenging. Dollar General and Family Dollar are neighborhood consumable stores, while Dollar Tree is a modern version of the old-fashioned variety stores,” Strong said. “Dollar General and Family Dollar have an 80 percent consumable merchandise mix: food, cleaning supplies, and healthcare. Dollar Tree sells more seasonal and impulse buys in more affluent suburban strip malls: wrapping paper, gift items, and toys.
The struggles of dollar stores, despite their convenience for many Delawareans like myself, highlight the complex and ever-changing retail landscape. In October, the economics of retail will be part of our Developing Delaware conference theme because it is such a vital part of our states’ economy.
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