The article is about the variety retail store chain Family Dollar’s approach to increasing sales and competing against not only other variety store retailers’ but against, convenience stores and mega retailers as well. “Last Year, Family Dollar decided it sold enough cheap detergent and school supplies – what it needed was food and cigarettes. Its research found that many of its customers smoke, and smokers tend to make frequent trips to buy cigarettes – maybe they’d pick up some groceries and whatnot while they were there. Food is also something people buy frequently, so the combination hopefully would boost traffic.”(BusinessWeek.com/Articles/2013-10-10/the-dollar-stores) The discount variety store teamed up with McLane, a grocery and tobacco supplier to convenience and drug stores, 7-11 and CVS to name a few to provide frozen foods from name brands like DiGiorno Pizza, and Eggo Waffles.
To provide more insight into this strategy let’s look at Family Dollars Swot Analysis according to http://mbaskool.com/brandguide;
Strengths – Operates close to 8000 stores worldwide, with more than 45,000 employees. They operate nine of their own distribution centers. They Operate in Food, Clothing and House wares, Excellent Brand recall and presence.
Weaknesses – Brand is still trying to get established globally, criticized by local communities about the possible negative effect on residential values these types of varieties store may have on the community.
Opportunity – Disposable incomes are increasing of the customer base, tapping the international markets, Acquisition of smaller retail chains, more visibility through advertising and customer focused services.
Threats – High Labor costs, the requirement of area is huge for opening a store, competition based on price points.
By looking at Family Dollars SWOT analysis and there strategy to basically appeal to a larger