Are you minding the dollar stores?

Packaging machinery OEMs and their customers are bound to be affected by the rapid growth of dollar stores across the country.

It was among the topics discussed at PMMI’s June 29 Pack Ops Conference, where John Henry of delivered a presentation on quick changeover.

“The dollar stores want their own packaging configurations, and they’re not the same configuration that the high-volume retailers like Wal-Mart and Costco want,” said Henry. “So the growth of the dollar stores will put that much more pressure on consumer packaged goods companies to be able to complete their changeovers quickly and efficiently.”

Just how fast are the dollar stores growing? According to coffee break conversation at the Pack Ops conference, the General Dollar chain of dollar stores now ranks as the second-largest customer for the large drug contract manufacturer and packager Perrigo, second only to Wal-Mart. No wonder Wal-Mart is preparing a new section in its stores expressly designed to compete with the dollar stores.

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