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Why discount retailers are adding new stores

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Exceptional value. Surprising products. Delicious experience.

Who wouldn’t want a piece of this action?

Turns out, that’s not just what a lot of shoppers want, but also the top three reasons Columbus-based discount retailer Big Lots is on a mission to expand its unique, ’emotionally connected’ brand. »To a buyer base of 75 people. % women.

By announcing its updated outlook and long-term growth plan to analysts and investors this week, the 50-year-old chain has resisted the industry’s dominant trend to go digital. Instead, the retailer said it would reverse a decade of stagnant store growth with new plans to add 500 more locations and increase sales.

But that begs the question: how can the big batches – along with rival discounters and dollar stores – continually challenge the downsizing and reorientation shift in retail that has seen so many other s ‘move away from physical stores?

“Easy,” says Karen Webster of PYMNTS. “Because people want to shop for fun and entertainment,” she added, while emphasizing the joy of finding and getting great deals on something you really don’t need, and then tell your friends about it.

It turns out that this “magic moment” never gets old.

In fact, in Big Lots’ own words, much of the appeal that discounters enjoy is that “value never goes out of fashion.”

Beyond the big three

As it stands, Dollar General, Dollar Tree, and Family Dollar alone accounted for about half of all new store openings in the United States last year as they tinkered with new store formats and layouts. , delivering and adding more product categories, especially food and produce, to make consumers buy – and be happy.

Not only does this play into the hackneyed world of impulse shopping, but due to their growing footprint, especially in rural communities, there is also a major convenience factor that plays into their success and growth.

In short, going to a discount store in your own town, finding a parking space a few meters from the entrance, then being able to quickly enter and exit a store a tenth the size of a warehouse store is an entirely different proposition task.

“We see a clear and long growth path ahead of us, coupled with the opportunity to generate returns through expanding margins and judicious allocation of capital,” said Bruce Thorn, CEO of Big Lots, in a statement. outlining the retailer’s growth plans.

With over 80% of its sales coming from furniture (30%), food and consumables (26%) and hard and soft household items (26%), the rest being spent on seasonal products and clothing, Big Lots has many products that attract the attention of its unique and loyal customers.

According to company demographics, the typical Big Lots buyer is a female over 40 who lives for home and family, enjoys hosting, entertaining, shopping in-store and online, and – most importantly – also “loves hunting for treasures and bargains.

There you go, the secret sauce that fuels growth in this quirky, low-cost little corner of retail, fun.

It turns out that experience matters a lot.

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