Williams enters the fray – Dollar General coming

dollar-130514WILLIAMS—The Dollar General being built on Grand Canyon Blvd next to the closed Rosa’s Cantina is coming along. One worker said that they planned to be open in March, but have to wait until mid-June to complete some of the ground work. It is not clear if they will meet the June time frame even though the building may be ready.

What might be more interesting about this chain coming is it might be seen by industry watchers as another “base” in the “war” between Family Dollar, Dollar General and Walmart. One dollar store-watching web site notes that consumers are reporting that people are generally finding the best deals at Dollar General and Walmart—particularly the so-called “Super Walmarts”—when comparing them between Family Dollar and local grocery stores.

Bloomberg reported that the January increase in payroll taxes may have impacted the two low-priced chains. The article says that the resurgent Walmart store may also be impacting the retail sales of Dollar General and Family Dollar; no. 1 and 2 respectively in this market.

Family Dollar, for example, suffered its biggest loss in twelve-years dropping 13% because of the 2% increase in payroll tax that hurts the poor more than anyone. Analysts Bloomberg surveyed said that Dollar General was moving into its slowest growth period in three years. They had to cut holiday pricing over Christmas.

While most residents of Williams wait and purchase essentials either through Sam’s Club or Walmart, it appears that Dollar General is hoping to keep customers local in Williams and perhaps take in some of the tourist trade. This might actually be a good time for Dollar General, in fact, since Williams recently lifted the tax on food.

It remains to be seen what form of imaginative pricing that Safeway will have to develop to meet the new threat to their market share.