One thing is for sure when starting a dollar store; you must know your competition. As the dollar/discount market continues to draw more businesses, knowing the competition is a way to not only know the challenges you face, but also to set actions in-place to excel. With careful study of your competitors and then implementing actions to make your store stand above the rest, customers will respond. That response will be defined by sales and more return visits.

However while it is fine to keep an eye on the competition, it is important to know exactly what you need to be looking for. It is not as easy as making a list of where the competition is to be found. It requires routine visits with specific goals in mind. In this article I present some of the most important things to examine when visiting the competition. Add these visits to your ‘must do list’ when first starting a dollar store.

Examine competitor operational systems and processes.

While no-one is likely to greet you at the door and offer to share everything about their business, routine in-person visits will reveal a great deal about your competition. Determine what you are looking for before you make visits and then focus on those specific pieces of their business. For example one visit might include an assessment of how employees treat shoppers, or possibly how they handle their end cap displays. Over time strengths and weaknesses will appear.

Carefully examine products that have been added to their offering.

Use each visit as an opportunity to discover new products. In some cases these new products will not be of interest to you or your shoppers. However there will be instances when you find a true gem. These gems are new, hot-selling products that seem to be flying off the shelf. Gather as much information as you can from the product labels and go to work to quickly add these items to the product mix in your store.

Check for best-selling merchandise that is no longer available.

With a constantly changing marketplace you will find some competitors no longer have some of the best selling items in-stock. This may be due to demand outstripping replenishment, price changes that prohibit carrying the items, or just poor product management. If the item is missing, ask an employee about it. In some cases they will provide the answer you need. If the issue is pricing of replenishment inventory do everything possible to get the merchandise into your store before you are faced with the same problem. If it is an ordering issue, capitalize by prominently displaying the product in your store. And of course never allow it to run out of stock!

To your success when starting a dollar store!

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