This story appears in the
September 2000 issue of
Entrepreneur.
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You've probably experienced the thrill of shopping at dollar
stores, but did you know you could own one? Dollar stores are more
than just bargain shoppers utopias; they're also
entrepreneurial opportunities, thanks to franchises like Dollar
Discount Stores of America Inc., the fastest-growing franchised
chain of dollar stores in the nation, with sales of $2.4 million,
via 122 locations in 28 states.
Dollar Discount Stores of America was founded in 1982 and began
franchising in 1987. Most stores are located in high-traffic strip
malls, small plazas and other locations near high-volume stores.
With middle-class America as its target market, chair and CEO Paul
Cohen says that they're the equivalent of the five-and-dimes of
years past. Typically, stores do best in areas where the
old-fashioned quest for a good bargain is still strong. "Our
biggest success has been in rural America," Cohen points
out.
Dollar Discount Stores sell everything from household items,
snack foods, and toys, to seasonal decorations and greeting cards.
If selling these kinds of goods at discount prices sounds appealing
to you, start-up costs for new franchisees usually run between
$99,000 to $160,000, with most stores averaging anywhere from 2,500
to 3,500 square feet.
According to Cohen, Dollar Discount Stores aren't all about
low prices, but about selection as well. "We don't want
our stores to be known as 'junk stores,' because
we're not," he says. "We pride ourselves on our
merchandise."
As far as Dollar Discount's goal of opening 40 to 50 more
stores this year, Cohen says, "We're right on
target."
