Test the Waters before Changing to Dollar plus Store Format

Many who start a dollar store at the dollar price point have thought seriously about changing the format of their store. For some the thought is to create a specialty store selling products aligned with the best selling department in their store. For others the thought is to change the entire store to a new format. Others decide changing to a dollar plus store is the right move. No matter what the thought, making a major format change is like starting all over. While it might be the best decision for your business, there are many start-up steps to take to ensure success of the new business venture.
Fortunately those who want to move to dollar plus format can experiment before they make the move. There is low investment. Yet experimenting allows you to test the waters before making a complete format changeover. In this article I provide a step by step process to follow if you’d like to test before changing over.
Step #1) Select an area inside your store for your dollar plus store test.
By creating an exclusive area that is isolated from your current dollar so the impact of the test is minimized. After all shoppers can still find the products they have always purchased from you. And the majority of those products will remain in exactly the same location they have always been during the test. The only exception is the area you have designated for dollar plus merchandise.
Step #2) Enclose the designated area.
Don’t spend a great deal of money on this temporary change. A designated area can be created with a temporary wall. Better yet this area can be created by strategically moving a few gondola fixtures. Create an entrance into the new dollar plus merchandise area using gondola fixtures or smaller dollar plus merchandise displays.
Step #3) Create signs for the dollar plus area.
Create large, easily read signs for the entrance of the dollar plus merchandise area. Create a large sign with large readable print. It must clearly state everything inside is dollar plus merchandise. This will significantly reduce shopper confusion about the prices of merchandise. Shoppers can decide whether they want to enter or not.
Step #4) Build excitement and anticipation before opening the area.
Turn the opening of this test area into an event. Start by making the movement of fixtures and merchandise to and from the designated area very visible. Use word-of-mouth promotion by informing your staff of the change and asking them to let shoppers know what is coming. Print and distribute small promotional flyers with the opening date.
Step #5) Start the test with fanfare.
Treat the opening of the test dollar plus store area as a grand opening event. Hold drawings throughout the first few days. Make sure the prizes will excite shoppers. Hand out balloons, free popcorn and other inexpensive items. Conduct a barbeque over the opening weekend. Don’t forget to build sales of $ 1 merchandise by filling your dollar store with great buys as well.
Step #6) Minimize shopper concerns about the format change.
When you start a dollar store there will be some shoppers who have been with you since the very first day. This format change can create fear of the changes you are making. After all they are already happy with the store, products and employees. Assure them this is simply a way to offer higher-priced products at great prices – and it is for those who wish to purchase. If your test is successful minimize the impact by carrying the most popular dollar store merchandise for as long as possible.
Step #7) Collect and analyze sales data.
Collect sales and profit data. Also collect customer feedback data. Analyze the data as you move toward making a decision whether to grow the dollar plus merchandise, to convert to a dollar plus store, or to stay as a dollar store. To your success starting a dollar plus store!