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Dollar Stores Gain in Grocery: Report

FORT LEE, N.J. — Shoppers are turning more frequently to dollar stores to fulfill needs for items like cleaning supplies and personal care items, according to results of a survey released Friday by Perception Research Services International here.

The survey indicated that supermarkets are still where most shoppers (91%) have purchased groceries in the past three months (in line with last year's 92%), and mass merchandisers are still their largest competitive threat (73% purchase groceries there – down from 76% in 2011). But this year's data show that dollar stores are gaining momentum as the percentage of shoppers who purchase groceries at dollar stores has increased, from 32% in 2011 to 35% in 2012. Levels at drug and convenience are holding steady relative to last year, PRS added.

Read more: Food Lifts Family Dollar Q4 Results

The study was conducted online among more than 1,500 shoppers aged 18 and older during June, PRS said.

“Our latest findings on grocery shopping indicate how very discerning today's shoppers are — about their venue preferences as well as brand choices," Jonathan Asher, executive vice president at PRS, said in a statement. "Retailers must understand their competitive strengths and capitalize on them, while also making the necessary adjustments to their offerings to seize opportunities for a larger slice of the pie as shoppers are more open to new shopping possibilities than they have been since the 1950s with the advent of large, supermarket chains."

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