One thing retailers learn, some of them the hard way, is to take no competitor lightly. Consider the case of Dollar General and a toy promotion it is running for the holidays.
Conventional wisdom holds that the greatest impact the growth of Dollar General and others of its ilk have had is on Walmart due to their appeal to opening price point shoppers. There is seldom any mention of Target the discount store in these discussions as it is somehow thought to be above it all, appealing to shoppers for whom such names as Missoni, Giada and Archer Farms have meaning. While Target surely appeals to a more affluent shopper, Dollar General is looking to siphon off some toy sales this holiday season from Target, Walmart and Toys “R” Us by offering a 10 percent discount on toy purchases of $100 or more. The discount is available through Christmas Eve.
Since Dollar General offers more than 300 toys at less than $5 shoppers shoppers’ are incented to purchase enough items