Dollar Stores Struggle to Adapt to the E-Commerce Age
What You Need To Know:
- Dollar stores, which have flourished in recent years, face slowing growth amid growing competition from low cost retailers, including Walmart, Target, Big Lots, and Wish.com.
- Dollar stores will need help building e-commerce infrastructure along with ways to track inventory and target consumers through mobile devices.
How you can capitalize:
- Buy online, pick up in store. This model has allowed brick and mortar retailers to use inventory from physical stores fill online orders, in effect turn existing stores into mini-warehouses for digital commerce. Many dollar stores must still build out their websites and mobile apps to allow consumers to search for product/price information. They also need to create inventory systems that match online orders with available merchandise.
- Digital marketing. Dollar stores attract a good deal of traffic, a captive audience that retailers can reach to boost in-store sales through mobile devices. Research shows that dollar stores consumers often use paper coupons but would overwhelmingly prefer digital coupons if the retailer offered them. Dollar stores need a system that can target specific consumers with coupons via smartphones based on their purchase histories.
- Opportunistic inventory. Dollar stores have been upgrading the quality of their merchandise by purchasing excess inventory from both national brand manufacturers and struggling retailers who need to liquidate their inventories to pay off creditors. Dollar stores could use a system that helps them predict and track these special situations to acquire inventory at fire-sale prices.
The last big holdout to e-commerce is about to fall.
Available exclusively to Trends subscribers
Understand upcoming market trends, receive our premium weekly report, access our database of research, and network with the smartest people we know
14 Day Trial
Join Trends now for $1!
Already a member? Log In.
Hear from our members:
Co-Founder / Udemy
Founder / Author of "Free PR"
Co-Founder / Vungle
What do you get with Trends:
The most powerful business peer group
Connect with thousands of the world’s most successful entrepreneurs, executives and insiders. Collectively, Trends members have companies with tens of billions in revenue.
They say you’re the average of the 5 people you spend most of your time with. Are you surrounding yourself with the right people? You are now.
Weekly Case Studies
Curated stories from the business world
Dive into the success stories of companies around the world and discover how they achieved.
In-depth trends analysis & monitoring
Discover what’s trending before it goes viral
Don’t press snooze on this opportunity: sleep supplements
The signal: As meditation becomes mainstream, people may be surprised to find that searches for sleep apps double their meditation counterpart. As people invest in getting a better night’s rest, there’s opportunity abound, including physical products like weighted blankets or premium PJs, supplements, popular insomnia drugs having their patents expire, companies paying their employees to sleep better, marketing for sleep specialists, or online sleep education (ex: sleep apnea test has 27k searches per month).
The alternative milk market is getting frothy
The signal: As more people wave goodbye to dairy, alternative milk is slowly taking over; it has already cornered 13% of the market. With the exception of soy milk, all of the alt-milks have been on the up, with some of the newer entrants including hemp milk and pea milk. Other alt-products are getting attention, including cashew cheese, with 18100 searches per month.
Capitalizing on the Airpods market, making more money than Shopify
The signal: Since killing the headphone jack, Apple has graced the world with AirPods, which did an estimated 60m units in 2019. That means AirPods alone are bringing in approx ~$10b in revenue, more than Twitter, Shopify, or Spotify, to name a few popular tech giants. Opportunity lies in Apple opening up SiriOS or the wave of iPhone accessories (including cases, cleaning kits, hooks, and keychains) which have shown “hockey stick” growth alongside their hardware predecessor.
Leading experts share their knowledge
Attend exclusive lectures from experts in the industry and stay in the know
14 Day Trial
Join Trends now for $1!