Family Dollar: Where is it going?

 During The Great Recession, the one bright spot, both for consumers and for the investment community, has been what has come to be known as the "dollar stores."  Their success is obvious by how many additional ones have been springing up.  In just one shopping center in North Haven, Connecticut, there are two of them.  They are always crowded.

However, often that label isn't completely accurate.  That's because some dollar stores such as Family Dollar sell items for less and more than a dollar. 

Many of us in communications have become fascinated with their ability to survive and thrive in the worst of times.  Now we're wondering how they plan to manage in better times as the economy picks up steam.  So, I asked Josh Braverman, Communications Director for Family Dollar, to tell us more about this bargain phenomenon.

 JG:  What is your new strategy in the grocery aisle?

JB: Our goal is to provide our customers with what they need when they need it.  Right now shoppers are focused on the basic needs.  Our assortment reflects that need.  We’ll continue to tweak our merchandise mix to meet customer’s needs and that includes increasing our assortment in food.  We’re focused on providing more name brands and we’ll complement that with our quality private brand.  We know food drives trips to our store and it’s our hope that while the customer is shopping for her food, she’ll find a treasure or two for her home.

JG: What makes you project success?

 JB: Family Dollar invests to know our customers better. We’re doing more customer research than we’ve ever done in the past.  What we’re learning is that our customers are appreciative of the great value we provide and they like the improved shopping experience in our stores.

JG:  How about a little background on your particular way of framing the awesome dollar concept?

JB: As a multi-price point retailer our prices range from $1 or less up to $10, $20.  At Family Dollar we pride ourselves on the value we provide to our customers.  Often value goes beyond the price our customer pays for the merchandise.  We’ve put a lot of effort into developing a global sourcing program that is focused on providing a quality product for our shopper at an everyday low price.

 JG: Why did dollars stores in general and yours in particular really take off during the downturn?  It was, I have a hunch, more than the price points

 JB:  The combination of value and a convenient shopping experience has helped Family Dollar weather the latest economic downturn.  As customers look to stretch their dollar as far as they can, they have come to know that Family Dollar offers the name brands they know and trust at price points that may be better than their grocery store.  As a neighborhood store, it’s easy for shoppers to run in for a quick fill-in trip and not have to travel to a big box store.

 JG: As the economy slowly recovers will the middle class lose their taste for the dollar stores?

 JB: We know that we’ve benefited from a new customer shopping with us more often to save money. She’s liked not only the savings but also the shopping experience.  Through the renovation program and our new store format, we feel that we’re well positioned to hold on to this “trade in” customer.

JG: Your employees seem very happy.  What might be the reasons for this?  After all the old social contract is out the window and the world is searching for a new one.  Maybe we can learn from your organizational culture.

JG: Our culture continues to evolve.  We’re squarely focused on our stores and providing our teams with the tools they need to service our customer.  In 2010 we completed a rollout of new technology in our stores to help our store managers run their stores, manage their inventory and provide excellent customer service.  As our stores continue to be successful, that culture goes through our Distribution Centers to our Corporate teams.

JG:  What are the key challenges in external and internal communications in 2012?

JB: From an external communication perspective, there is still a large percentage of people who may have a misperception of Family Dollar.  They might not realize that we are a major retailer that carries the name brands people trust and need as well as quality private brand that offers additional value.  We also offer great merchandise in apparel, home, seasonal etc. 

Internally, it’s always a challenge to get 50,000+ people on the same page.  We’re working hard to continue to improve how we communicate throughout the chain and continue to drive our culture of customer service.

JG:  What has been your career path so far? What might other public relations players and students learn from it?

 JB:  I started my career in the media and made the transition to PR after about 12 years in TV.   TV was good to me, but I had run my course.  The one thing I would recommend for people is to practice writing.  Writing is a “lost art” and to be successful in PR/Communication, effective writing is essential.

JG:  Thank you for all this insight into the dollar concept and how Family Dollar has created its own distinct brand.

Readers can reach Josh Braverman at Family Dollar at jbraverman@familydollar.com.  

Comments

[Kristopher Gawron]

Dollar stores have always been the saving grace of grocery shopping, fulfilling our small but important needs as instantly as possible. It's rather fun for the kids too!

[Air Jordan 4]

Catch the bear before you sell his skin.