In Las Vegas last week I got to a Dollar Tree store. Dollar Tree is a chain of more than 13,000 stores across the US where everything is $1. It is like the Reject Shop in Australia but more focussed on a price point and much bigger.
I have seen Dollar Tree evolve over the years. I visited again last week to see their current greeting card offer.
The images below show a broad range, satisfying any card giving occasion. While some cards are $1.00 each others are two for $1.00.
The cards are from American Greetings.
Will we see anything like this here in Australia? I expect so. You only have to look at the success of Aldi to understand the support for a value offer in Australia.
Mark,
If this model was coming to Australia, shouldn’t it already be here ?
Dollar Tree (US) and Card Factory (UK) both has massive volumes arrived at being founded many years ago followed by acquisition of chain outlets.
I agree the AUD card may arrive, but how. Maybe an incumbent like Hallmark embraces the model, but they don’t have the outlets ?
I think supermarket chains have the where with all to fully embrace the model, but, as you rightly point out, they have Aldi to focus on.
Colin not necessarily. The UK and US models are completely different. If we see one model arrive on our shores in view it is more likely to be Card Factory. This is a model that is far more challenging for us that Dollar Tree.
I would expect that the significantly higher occupancy costs in Australia, coupled with higher labour costs would make a $1 per item model difficult to work in Australia.
Many of the $2 shops have disappeared for much the same reason