Friday, November 16th, 2018 November16th2018

Sell for More News: Dollar stores to enter hip urban neighborhoods

Published on November 16th, 2018

Beau Beach

Sell for More News is a weekly blog series with interesting information from the world of commercial real estate.

 

Rural America’s darling, Dollar General, is planning a move to the big city as…DGX.  The store is about half the size of Dollar General’s regular 9,000 SF stores. Carrying everything from bug spray to beer, it’s a tidy mashup of a drugstore, convenience store and corner grocer, but with lower prices and free Wi-Fi.

An example can be found in Nashville at 2034 West End Ave (below) with many more on the way.

Beau Beach CCIM

Dollar General sees a huge opportunity in urban, millennial shoppers who are starting to settle down and look for affordable places to shop. Keep in mind, the company is doing fine without them… same-store sales have increased for 28 straight years.

Target has had some success over the past few years with smaller urban stores. Home-improvement chains Home Depot and Lowe’s have also brought their rivalry from the suburbs into cities over the past decade.

Dollar General has long catered to depressed, sparsely populated rural areas—the very antithesis of hipster neighborhoods. But the company is betting that millennials like a good deal as much as anyone.

Shoppers have said they were most impressed with the stores’ tidy, organized layout. It’s clean, it’s brightly merchandised and it’s welcoming.

Dollar General faces entrenched competition in urban markets, from convenience and drug chains to rival discounters like Family Dollar, which already has many stores in cities.  DGX wants to capture the people who don’t like the vibe of a dollar store.  Competition aside, Dollar General will find it tougher to turn a profit in cities thanks to higher real estate, labor and logistics costs.

 


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About Beau Beach, CCIM

Beau is a tenacious Investment Real Estate Broker, author and adoring father of four. His clients appreciate his no-nonsense demeanor and his legendary work ethic.

Beau leads Prowess IRES which is a commercial real estate broker for sellers in the Nashville, Milwaukee, South Florida and Chicago markets.

He’s the author of the books The 3 Reasons: Why Most Commercial Properties Don’t Sell and True Wealth: What Every Seller Should Know About 1031 Exchanges.

Beau can be reached at 414.324.4938, 615.603.9770, click to schedule a call or Beau@ProwessIRES.com