Earnings dropped significantly for dollar stores this summer due to competitive and economic factors. But discount start-up Hollar is gaining attention with an online discount shopping business model – one that will become increasingly attractive to Millennials and the next generation.
Millennials are now responsible for 80 percent of US births, according to the “Millennials as New Parents” study by Millennial Marketing. That same report sets the median income for new Millennial parents at $50,000, lower than the national average of $52,000.
More kids, not as much money.
The Trends Research Institute’s study of millennial shopping habits suggest when it comes to purchasing rudimentary items – such as milk, bread, diapers, toys, basic tools and pet care items – finding the cheapest priced items suits millennials fine.
And since Millennials are online creatures, dollar stores will need to focus aggressively on digital sales and promotion. Hollar is doing just that. It sells items as diverse as Rubbermaid containers and a universal remote control, generally priced between $2 and $5.
Hollar’s next move is to collaborate with Millennial mom influencers, hoping to draw in more young mothers to buy baby items and beauty supplies.
TRENDPOST: Millennials will soon be responsible for nearly all worldwide births. Their online shopping habits and tight wallets present opportunity for digital discount shopping companies.