At Store Supply Warehouse, we get many stores asking us for tips on how to survive the recession. That is one of the reasons we created the Store Supply Blog and Forum for Independent Retailers, because we wanted to give retailers a place to go to get ideas on how to stay afloat during these hard times.
This Tuesday, we are going to celebrate a segment of the industry that is not only staying afloat, but thriving; the discount/resale industry.
Discount retailers such as dollar stores, thrift shops and discount chains are seeing increased demand as consumers turn away from brand names and bargain shop. Many dollar store chains have seen unprecedented revenue growth. Recent earnings statements declared that Family Dollar’s revenue is up 8% and Dollar Tree is up 4%.
Additionally, charity-based stores such as Goodwill are calling for donations. Because more people are shopping at discount stores such as Goodwill, increased demand is keeping the shelves from being stocked to capacity and more donations are needed in order to meet that demand.
Retail supply distributors such as Store Supply Warehouse often can predict the retail markets’ success by the amount of supplies ordered in each industry segment. Recently, we have seen a spike in orders from the discount retail industry. In addition to standard supplies such as bags, hangers and tags, discount retailers are ordering shelving, racks and displays to accommodate added merchandise needed to meet consumer demand.
Prior to our current economic status, many consumers may have avoided dollar and discount retail chains, and especially thrift stores and consignment shops. But things have changed. There is no certainty in these hard economic times for consumers and retailers alike, but if buying patterns of Store Supply Warehouse customers are any indication of what the future may hold, then dollar store retailers and discounters may have the best chance of weathering the storm.
So we just want to congratulate the discount/resale store industry for their ability to adapt and meet demand during this economy downturn. As the economy recovers, we hope that consumers remember the discount stores that helped their families make ends meet.
Are you a discount store owner/manager? How has business been recently for your organization? Any tips to pass along to non-discount store owners?
