A few weeks ago we posed the question, “Will Americans go back to their old spending habits when the recession ends.” Although this question poses a particular challenge for CPG’s, it’s quite far-reaching. As was expected, Family Dollar stores have seen a 33% increase in profit as a result of the economy, with food and other consumable items driving revenue. The chain has attracted middle income customers who may not have frequented the store in the past. But will they stay when the economy turns around? This depends on how, and if Family Dollar plans to acknowledge the presence of their new customers.
The spartan, discounted feel of Family Dollar works for now but when the economy turns around, shoppers may return to their favorite stores — which have likely been working on pricing, messaging, and design to get their customers back all the while. Family Dollar should take this as an opportunity to invest in an environment that will appeal to these shoppers before they lose them. Miller Zell’s most recent shopper study, shows that 67% of shoppers rate store experience important while 9% rate it most important in their purchase process. That said, investing in store design now, while new shoppers are giving your franchise a chance, is money well spent. It’s been said many times, many ways — never waste a good crisis.
