When you walk into a brick and mortar retail store like a Nordstrom, Cabela, or even Family Dollar, you’re being tracked around the store. Not by an over-suspicious security guard, but by the store’s wireless network, using your phone’s Wi-Fi. The store then uses your phone to track you around the store, determine if you’re a repeat visitor, see what departments you visit, and more. Here’s how they do it, and how to stop them.
Image from: Dollar Store Image / Shutterstock
Shoppers may not associate dollar stores with ecommerce, as the cost of shipping is likely to exceed the price of most items sold in these stores. However, traffic to dollar store sites has been steadily increasing over the past few years, and more shoppers are turning to the web for increased value.
The three main players in the space, Dollar General, Family Dollar, and Dollar Tree, have all experienced a continual growth in traffic since March 2010, with Family Dollar in particular up 130%. Today, all sites see about 1 million unique visitors per month. The growing popularity of these sites is more impressive when you consider that the sites may not even offer the option to purchase online or only recently rolled out that capability. Dollar Tree has had ecommerce capabilities since 2009, but Dollar General just introduced them in September 2011 and Family Dollar doesn’t have the option to purchase at all.
Since the focus of these sites is less on purchasing, shoppers use them primarily as an in-store companion tool—visiting for coupons, weekly ads, and store locators. Family Dollar and Dollar General also have extensive recipe sections that highlight inexpensive meals that can be made using their products. The recipe feature helps to further position these sites as a shopper’s planning resource, and emphasizes the grocery offerings of these stores, a growing part of their business.
Dollar store shoppers are most likely interested in saving money, especially during these economic times. In Q4 of 2011, an average of 60% of online dollar store shoppers also visited Walmart.com in the same month, and Walmart shows up in the top 10 referring sites for each of the stores. Dollar store shoppers may be comparing prices with Walmart and deciding whether to buy in-store or online.
Dollar store sites should continue to offer in-store planning resources as online traffic increases, but they may also want to emphasize their ecommerce potential as well. By offering competitive prices to Walmart and differentiating themselves as a more convenient option, they could gain more shoppers. They are also a good candidate for offering free shipping promotions, as shipping costs may be a major deterrent to people buying their inexpensive items online.
Dollar stores are booming in a struggling economy, and one of the big boys of the industry is doing so well it’s planning another period of explosive growth, reports Gail Hoffer and Drug Store News.
It will open 625 stores and hire around 6,000 employees over the course of 2012. The discount chain already has about 9,800 stores spread across 38 states, and some of the new stores will be in previously unoccupied states California and Massachusetts.
Dollar General has adopted an aggressive growth strategy since the start of the recession. This marks the third straight year it has opened hundreds of new locations, and the chain has created more than 21,000 jobs since 2009.
It’s not all about the economy though. Dollar General had to be smart in its expansion strategy too — after all, Walmart is its biggest competitor, and the world’s largest retailer has had similar success recently.
It thrives on hitting markets that Walmart hasn’t taken over, such as small towns that can’t support one of Walmart’s massive big box stores. It also competes with the other big dollar store chains, like Family Dollar. The hybrid concept — somewhere between a giant discounter and a small dollar store — has worked admirably.
Plus, while dollar store marketing plays a significant role in getting people through its doors, Dollar General is actually also a clear leader in price over both Walmart and its dollar store compatriots.
- You Won’t Believe The Crazy Burgers McDonald’s Just Released In Japan
- How To Create The Perfect Tagline For Your Business
- This Incredibly Patriotic Website From Philip Morris Is A Sly Marketing Move
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
Collaborators – Digital Profs
- Bitcoin Developer Sells $8 Million Worth Of Hardware In 24 Hours, As Mining Technology Arms Race Goes Insane
- Netflix vs Blockbuster - Perfect example of an industry replaced by a more efficient version of itself
- Coke vs Pepsi vs Dr Pepper
- Marketing Costs Normalized to CPM Basis for Comparison
- The JKWeddingDance video was real; the viral effect was MANUFACTURED - Post 1 of 2
- WPP Will Buy Interpublic Group To Reclaim Top Spot In Ad World [THE BRIEF]
- Samsung 52 inch HDTV $9.99 at BestBuy - purchase receipt below (6:21a eastern time August 12, 2009)
- How Google Decimated A $2 Billion Search Business
- Evolution of il Laboratorio Digitale - Big Data Analytics Driven Digital Strategy
- Brand Advertisers: Escaping an Ecosystem of Digital Advertising Fraud
- #SESNY: Toward a Performance Mindset for All Advertising
- Tips for Marketers Selecting a Digital Agency
- Context Is Not King or Queen; It's Just Necessary
- 2013 New Year's Digital Marketing Resolutions
- The Good, Bad, and Ugly of Online Campaign Ratings and eGRPs
- Why You Should Banish the Net Promoter Score Immediately
- Digital Strategy To-MAY-to vs. To-MAH-to
- The Agency-Client Relationship is Forever Changed
- Targeting vs. Privacy - Who Will Win?
- December 2013 (70)
- November 2013 (111)
- October 2013 (116)
- September 2013 (214)
- August 2013 (210)
- July 2013 (200)
- June 2013 (87)
- May 2013 (87)
- April 2013 (70)
- March 2013 (114)
- February 2013 (89)
- January 2013 (136)
- December 2012 (96)
- November 2012 (130)
- October 2012 (147)
- September 2012 (94)
- August 2012 (93)
- July 2012 (112)
- June 2012 (71)
- May 2012 (82)
- April 2012 (80)
- March 2012 (122)
- February 2012 (114)
- January 2012 (129)
- December 2011 (60)
- November 2011 (54)
- October 2011 (29)
- September 2011 (17)
- August 2011 (30)
- July 2011 (18)
- June 2011 (19)
- May 2011 (23)
- April 2011 (23)
- March 2011 (52)
- February 2011 (69)
- January 2011 (108)
- December 2010 (82)
- November 2010 (67)
- October 2010 (68)
- September 2010 (44)
- August 2010 (101)
- July 2010 (61)
- June 2010 (28)
- May 2010 (28)
- April 2010 (26)
- March 2010 (33)
- February 2010 (21)
- January 2010 (12)
- December 2009 (4)
- November 2009 (2)
- October 2009 (14)
- September 2009 (6)
- August 2009 (19)
- July 2009 (34)
- June 2009 (11)
- May 2009 (4)
- April 2009 (6)
- March 2009 (13)
- February 2009 (32)
- January 2009 (25)
- December 2008 (1)
- October 2008 (1)
- June 2008 (1)
- November 2007 (1)