Top dollar: Changes in operational strategy to appeal to middle-income consumers sustained growth

Generally, the Dollar and Variety Stores industry in Canada is countercyclical to the economic cycle. To sustain revenue growth during a period categorized by improving economic conditions, industry operators have made several changes to their operational strategy. By stocking shelves with more quality products, improving consumer service and investing in store athletics, industry operators have been able to attract and retain middle-income consumers, thus expanding its consumer base. Over the five years to 2018, the industry was one of the fastest-growing industries in the retail sector, and its revenue growth outpaced that of its traditional competitors, such as department stores and more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Strategic partnerships enabled dollar stores to effectively manage inventory
  • Rising industry revenue and profitability have driven the industry’s expansion
  • As the economy improves, operators will find it exceedingly difficult to retain middle-income consumers
  • Industry Report - Industry Investment Chapter

    The Dollar and Variety Stores industry in Canada has a low-to-moderate level of capital intensity. An average industry operator is expected to spend $0.14 on capital for every dollar spent on labour in 2018, which remains unchanged from 2013. Expenditures on store fixtures and fittings have remained fairly stable in recent years, as they are typically purchased when a new enterprise enters the industry or when existing stores are refurbished. Alternatively, expenditure on technological equipment (e.g. computer scanning cash registers) has experienced considerable growth during the past 10 to 15 years. In its early days, only larger players undertook such expenditures, as implementation costs were high. How...purchase to read more.

    Additional Insights for the Dollar & Variety Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Dollar & Variety Stores Industry are

  • Ability to control stock on hand
  • Effective product promotion
  • Ensuring pricing policy is appropriate
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and National unemployment rate in the Dollar & Variety Stores industry impact industry performance..

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    What's in this report

    What is the Dollar & Variety Stores Industry?

    This industry retails general merchandise, such as apparel, cleaning and party supplies, dry goods, hardware, groceries and home furnishings. Typically, industry operators retail these goods at discounted prices (often for one dollar or 99 cents). The industry does not include department stores, warehouse clubs and grocery stores.

    Industry Products
  • General merchandise
  • Consumable products
  • Seasonal products
  • Industry Activities
  • Retailing groceries and other food items at discounted prices
  • Retailing cleaning and other household supplies at discounted prices
  • Retailing general merchandise at discounted prices
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • National unemployment rate
  • External competition for the Dollar Stores industry
  • Urban population
  • Leisure time

  • Current Performance
  • An expanding market
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Challenging times ahead
  • Industry landscape
  • Table: Dollar & Variety Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Dollar & Variety Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers in Canada

  • Key Selling Industries
  • Cigarette & Tobacco Product Wholesaling in Canada
  • Grocery Wholesaling in Canada
  • Office Stationery Wholesaling in Canada
  • Sporting Goods Wholesaling in Canada
  • Toy & Craft Supplies Wholesaling in Canada

  • Products & Services
  • General merchandise
  • Consumable products
  • Seasonal products
  • Chart: Dollar & Variety Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers with incomes from $29,999 or under
  • Consumers with incomes from $30,000 to $49,999
  • Consumers with incomes from $50,000 and over
  • Chart: Major Market Segmentation for the Dollar & Variety Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Dollar & Variety Stores

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Dollar & Variety Stores Industry

  • Industry Globalization
    Dollarama Inc., Dollar Tree Inc.,
  • Table: Dollarama Inc. - financial performance
  • Table: Dollar Tree Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Dollar & Variety Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Dollar & Variety Stores Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per capita disposable income (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Big-Box Store
  • A retail store that is differentiated by its sheer size and large range of products, including electronics, households goods and other consumer products.
  • Consumables
  • Products intended to be used within a specific time frame. Examples include food, snacks and beverages.
  • Point-Of-Sale (Pos)
  • A system used at checkout in retail stores using computers and cash registers to capture transaction data at the time and place of sale.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Dollar & Variety Stores market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Dollar & Variety Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Dollar & Variety Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Dollar & Variety Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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