Variety Stores

The Dollar and Variety Stores industry has experienced growth over the five years to 2022, as operators adopt new strategies to sustain growth. The most substantial platform for change within the industry has been its customer base. While the industry has historically targeted low-income earners, this consumer pool has expanded in recent years to include middle-class and even some high-income earners. Further, expansion in industry product portfolios to include different categories, such as healthcare products, has enabled larger operators to compete with other discount retailers. Overall, the combination of these trends has driven growth. As a result, IBISWorld expects total industry revenue to increase at an annualized rate of 3.5% to $101.3 billion, including a decrease of 0.4% in 2022 alone. In line with revenue, industry profitability is expected to increase during the same five-year period.