Delivery apps unlock dollar store growth
Dollar stores are partnering with delivery platforms to reach new urban and suburban customers while gaining valuable consumer data, despite high delivery fees relative to low-priced goods.
The argument
The discussion highlighted that delivery partnerships provide dollar stores with a new revenue stream and better visibility into the purchasing habits of historically anonymous cash shoppers. Analysts argued that vehicle-constrained or time-poor consumers are increasingly willing to pay convenience premiums for discount goods.
The thesis, stress-tested
✓ What validates it
- ✓Dollar Tree or Dollar General reporting digital and delivery sales growth in upcoming earnings
- ✓DoorDash reporting increased order frequency in the value and discount retail sector
▸ Risks discussed
- ▸High delivery fees may eventually deter low-income consumers
- ▸Tight delivery margins on low-average-order-value items
Hear it yourself
"I'm Mitchell Hartman for Marketplace. My colleague, David Brancaccio, did a series a number of years ago called robots ate my job. And then a couple of years later, he did a series called robot proof jobs. This next story is kind of a hybrid. Forget artificial intelligence for a second and what it is and will do to the labor market. On some college campuses, actual robots are metaphorically anyway, hiring students, teaching those students, and in some cases, rerouting their careers. Julia Pekar has the story. Five years ago, robotics company Starship rolled out 20 food delivery robots at Oregon State University in Corvallis."
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