Analysis

2014 American Pantry Study

Based on our four years of data and learnings, in this study we present a growth playbook for packaged goods companies.

Analysis

Dollar store strategies for national brands

The evolving dollar channel implications for CPG companies

The retail landscape and consumer preferences appear to be shifting, possibly for good. The consumer product executives we surveyed and interviewed seem to be realizing this, albeit gradually. The increasing consumer affinity toward new and improved dollar stores has caught the attention of both retailers and CPG companies. The shift in executives’ views on the importance of different channels over the last three years is testimony to the significance of this trend.

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Learn more about Dollar store strategies for national brands

The core dollar-store consumers with low incomes have been well served by the dollar product offerings, prices, and convenience. However, the new dollar consumers are surprised and appreciative of the national brand offerings and the dramatically improved in-store experience. Consequently, it is important for CPG companies to make the dollar channel a strategic channel.                             

Some consumer product companies have figured out the unique characteristics of the dollar channel, and have responded to the challenges of dealing with this growing channel in five distinct areas:

  1. Brand, product strategy, and innovation
  2. Merchandising and assortment
  3. Pricing and trade promotion strategy
  4. Supply chain, distribution, and operations
  5. Account team structure, staffing, and capabilities

Meet the authors

Pat Conroy

Pat Conroy

Vice Chairman & US Leader | Consumer Products

Pat Conroy is the vice chairman and leader of the ...More

Rich Nanda

Rich Nanda

Consumer Products Strategy & Growth Leader

Rich is the practice leader for US Consumer Produc...More

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Kim Porter

US Consulting Leader | Consumer Products

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Frank Milano

US Advisory Leader | Consumer Products and A&D

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