Variety store


A variety store, dollar store, or pound shop, historically also five and dime, is a retail store that sells general merchandise, such as apparel, auto parts, dry goods, toys, hardware, furniture, and a selection of groceries. It usually sells them at discounted prices, sometimes at one or several fixed price points, such as one dollar, or historically, five and ten cents. Variety stores, as a category, are different from general merchandise superstores, hypermarkets, warehouse clubs, grocery stores, or department stores.
Dollar stores that sell food have been alleged to create food deserts: areas with limited access to affordable and healthy food. This is alleged to occur when dollar stores outcompete local businesses, and soon become some of the only grocery store–like businesses available in some areas.

Economics

Pricing and margins

Some items are offered at a considerable discount over other retailers, whereas others are at the same price point. There are two ways variety stores make a profit:
  • Buying and selling vast amounts of goods at heavily discounted prices provides a small profit margin multiplied by the sales volume.
  • Pricing many items at prices that are higher than regular retailers. These goods are commonly bought by consumers who perceive them to be bargains based on the heavy discounts on other items in the store. In the case of fixed price-point retailers, this can be achieved by reducing the package size.
Variety stores with single price points buy products to fit those price points that are:
  • generic brands or private labels, often specially manufactured using cheaper materials and processes than usual.
  • available through the grey market.
  • bought at a closeout sale, such as seasonal or promotional goods or bankruptcy stock.
  • sold in smaller unit sizes than elsewhere.
Not all variety stores are "single price-point" stores, even if their names imply it. For example, in the United States, Dollar General and Family Dollar sell items at more or less than a dollar. Some stores also sell goods priced at multiples of the named price and, conversely, multiple items for the price. The discrepancy with the nominal price is also compounded if sales tax is added at the point of sale.

Supply

In many countries, stock can be imported from others with lower variable costs, because of differences in wages, resource costs or taxation. Usually, goods are imported by a general importer and then sold to the stores wholesale.
Another source of stock is overruns, surplus items and out-of-date food products. Real Deals, a regional dollar store in the Syracuse, New York area, is stocked almost entirely with surplus goods such as these. The legality of selling out-of-date goods varies between jurisdictions: in general, most items can be sold in the United States regardless of their sell-by date, but in the United Kingdom it is illegal to sell goods after their "Use by" date.

Demography

Although some people may link variety stores with low-income areas, this is not always true. For example, Atherton, California has a variety store within its city limits, even though it has a median household income of nearly $185,000 a year. Studies of food discounters in Great Britain show quite a varied demographic, and 99p Stores reported an increase in higher-income customers after the 2008 financial crisis.

Allegations of creating food deserts

Dollar stores have been alleged by a number of studies, individuals, and organizations to proliferate food deserts: areas with limited access to healthy and affordable food. Dollar stores are alleged to outcompete local grocery stores, and end up being one of the few options available for purchasing food in some communities. Dollar Tree has disputed this claim; it claimed that in a number of cases it created food options in food deserts. In 2023, Dollar Tree reportedly stopped selling eggs when the price of eggs increased. In line with these allegations, a number of U.S. states have passed restrictions on where new dollar stores can be opened.

By region

Global chains

is a Chinese variety store chain that specializes in household and consumer goods including cosmetics, stationery, toys, and kitchenware. In 2016, the company's sales revenue reached $1.5 billion. Miniso has expanded outside of the Chinese market and operates 1,800 stores in Asia, Europe, Oceania, Africa, North America, and South America.

Africa

In Egypt, a variety store may be called a £E2.5 shop.

Asia

In Japan, 100-yen shops have proliferated since around 2001. This is considered an after-effect of a decade-long recession of the Japanese economy. Despite the emphasis on value, however, some items, such as chocolate bars, may be priced higher than they are at other stores.
For a few years, 100-yen shops existed not as permanent stores, but as vendors under temporary, foldable tents. They were typically found near the entrance areas of supermarkets.
A major player in 100-yen shops is the Daiso chain. The first store opened in 1991, and there are now around 2,400 stores in Japan. This number is increasing by around 40 stores per month. Daiso has also expanded into North America, Australia, Asia, and the Middle East.
In China, ¥2 shops have become a common sight in most cities. In Hong Kong, major department stores have opened their own $10 shops to compete in the market, and there are now "$8 shops" and even "$2 shops" competing at lower prices, especially in poorer communities. Low prices are helped by Hong Kong's lack of a sales tax and its access to the mainland.
In Taiwan, fixed price stores can be found in many locations, including night markets, regular shopping streets, regular market stalls, and department stores. Two typical price points are NT$39 and NT$49. Given that the retail environment in Taiwan is already highly competitive, it is not unusual to see such stores fail.
In India, US Dollar Store, founded in 2003, is a pioneer of single price stores. The merchandise for pilot stores was sent from America. As sales grew over the years with more than 200 operational stores in India, the merchandise is now imported from China, Indonesia, Thailand, Spain, Portugal, UK and various other countries as well as the US. US Dollar stores were founded by entrepreneur Gaurav Sahni, owner of Nanson Overseas Private Limited. Nanson, operated by Gaurav Sahni and his brother Gautam Sahni, has had an established sourcing and consolidation network for over two decades, with supply bases worldwide. Direct sourcing without intermediaries and stocking a large variety of merchandise as and when needed has given the company an advantage.

Variety store chains in Asia

  • In China: Miniso
  • In India: US Dollar Store
  • In Japan: Daiso, Seria, Can Do, Don Quijote
  • In Pakistan: Ghazali's HomeStore, Imtiaz, Carrefour
  • In Malaysia: MR.DIY, 99 Speedmart, Eco-shop

    Names for variety stores in Asia

  • 100 fils Shop in Kuwait
  • 2 riyal Shop in Saudi Arabia and other Arabian Gulf countries
  • 20 Qirsh Kuruş/ 50 Qirsh and 1 Dinar shop in Jordan.
  • 25 Liras / 50 Liras in Syria - before 2011
  • 100-yen shop or one coin shop in Japan
  • 10-dollar shop, 8-dollar shop, etc. in Hong Kong
  • 1000 Won shop in South Korea
  • 88 or 99 Peso store in Philippines
  • 49 & 99 shop in India
  • Hakol Bedollar in Israel
  • Ghazali's HomeStore in Pakistan
  • Всё по 100 рублей in Russia
  • 10 or 20 Baht shop in Thailand
  • 2-ringgit stores in Malaysia

    Central America

Variety stores in Guatemala include Dollar City.

Europe

European Union

  • In Belgium, chains include Action, HEMA, and Zeeman.
  • In Denmark: Tiger, a pun on the word for the Danish ten-krone coin, opened in the mid-nineties in Copenhagen and has since spread to other countries
  • In France: Action, HEMA, Uniprix, M. 1-2-3. Zeeman
  • In Germany, there are ToBi stores where most items cost one or two Euro or less. Other chains include Action, EuroShop, HEMA, Mäc-Geiz, Pfennigland, Pfennigpfeiffer, TEDi, Thomas Philipps, and Zeeman
  • In Greece: 300
  • In Hungary there are 100 forintos bolt stores, but they do not form a single chain, instead of being operated by small, independent companies.
  • In Ireland: EuroGiant, Dealz
  • In Italy: UPIM
  • In Luxembourg: HEMA, Zeeman
  • In Malta: Tal-Lira
  • In the Netherlands: HEMA chain started in the Netherlands, sold goods using standard prices of 10, 25 or 50 cents, and later also 75 and 100 cents. After World War II, this model could not be sustained and the standard pricing system was abandoned. HEMA is the abbreviation of Hollandish standardized prices company. The HEMA had some 500 Dutch stores in 2011 and also operates in Belgium, Germany, Luxembourg and France. Since 2016 the chain is expanding in to other European countries such as Spain and the United Kingdom. Other chains include Action, Big Bazar, Euroland, and Zeeman.
  • In Portugal there were Trezentos shops, but with the introduction of the Euro currency, this designation is not used nowadays and the terms 'bazar' or 'euro store' are preferred. Chains include Eupoupo - Tudo a €0,99 ou €1,49
  • In Spain there are Todo a 100 shops, although due to the introduction of the euro and inflation, most products cost a multiple of €0.60 or €1. Most of these shops maintain their name in pesetas, and most of them have been renamed as Casi todo a 100, Todo a 100, 300, 500 y más or Todo a un euro. Colloquially, the expression todo a 100 implies that something is either cheap, kitsch or low quality.
  • In Sweden: Bubbeltian, called by some Tian, a colloquialism for ten kronor, US$1.20. Another chain that has been spreading in Sweden during the last seven years is Dollarstore, a chain where everything costs either 10, 20, 30, 40, 50 and steps of 50 up to 500 kr.