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Discount retailers cash in on consumables

Chesapeake, Virginia — Food and beverages continue to play a key role in the growth of some of the nation’s largest one-dollar store retailers.

Michael A. Witinski, president and chief executive officer of Dollar Tree in Chesapeake, Virginia, said on an Aug. 25 conference call to discuss second-quarter financials that the retailer’s supplies business will He said the period was “going well.”

“Consumables, which accounted for 46.8% of the mix in the second quarter, competed at 7.9%, while discretion increased by 6.7%,” Witynski said. “The last time consumable comps exceeded discretion was at the start of the pandemic in the first quarter of 2020. It shows success in the main traffic-driving categories it was able to do: cookies and food.

“Reminder consumables are faster than discretionary products given their buying cycle, and our sales performance shows that shoppers are responding favorably to refine our value proposition. The recovery in consumables momentum is a good indicator of the continued long-term health of Dollar Tree Banner.”

Witinski said Dollar Tree continues to improve its $3 and $5 selections as part of its broader multi-price service program. Retailers hope that by testing different concepts, they can enhance their programs. One of his successful areas has to do with freezer cases, Witynski said.

“Multi-price frozen food testing is driving extraordinary sales productivity as new products offer tremendous value and meet the needs of family portions such as frozen food, pizza and ice cream.” He said.

Meanwhile, an executive at Dollar General Corporation in Goodlettsville, Tennessee, said core customers were more intentional and more on-demand shopping in the second quarter.Trade-down activity also increased. did, they said.

“For example, during the second quarter, customers appeared to be trading off some of their food choices, contributing to increased private label penetration in the consumables business.” Discussing financials for the second quarter for . 25 conference calls. “We have also seen an increase in the number of high-income households shopping with us, which we believe reflects that more consumers are choosing Dollar General for value.”

Dollar General has seen 15% to 20% growth in canned meats, seafood, dried pasta, soups, rice and beans over the past few quarters, Vassos said.

“We can provide core protein, eggs, and everything a consumer needs to feed their family at a much lower price,” he said. We’re in a great position to take advantage of the low retail price stance each day and the supply chain being much healthier than it was last year at this point.

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