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InvisibleLongStrangeTrip
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Registered: 09/19/09
Posts: 5,382
Family Dollar Hopes To Hook Low-Income Shoppers With Cigarettes
    #16028777 - 04/01/12 01:13 PM (2 years, 4 months ago)

Family Dollar Hopes To Hook Low-Income Shoppers With Cigarettes

Link

UPDATE: This story has been updated to reflect a statement from Leon Levine, founder of Family Dollar.

In the fight for low-income shoppers, Family Dollar has unveiled a new weapon: cigarettes.

The Matthews, N.C.-based dollar store will start selling cigarettes and tobacco products in the next several months, president and Chief Operating Officer Michael Bloom said on a conference call with analysts Wednesday.

Family Dollar shoppers smoke more than average, but until now have been getting their fix elsewhere. "Tobacco is about a $90 billion business that drives very frequent trips," Bloom said. "Our customer research tells us that Family Dollar customers overindex on cigarettes and tobacco products. Soon, our customers will be able to come to our stores for these products."

Family Dollar didn't respond to a request for comment Thursday afternoon.

None of Family Dollar's chief competitors -- Dollar Tree, Dollar General or 99-Cent Only -- sell cigarettes. Dollar stores also typically shy away from selling alcohol, though in the past two years Dollar General and Family Dollar have experimented with selling beer and wine.

Family Dollar's "core customer" is on a tight budget, making $40,000 a year or less per family. Though company officials believe that the economy is improving overall, its "core customer is stressed and continues to be stressed," CEO Howard Levine told analysts on Wednesday's call.

Family Dollar is already using other tactics to lure stressed Americans to its stores. The chain is in the process of reinventing itself as a discount grocer, where shoppers can get packaged and frozen food, as well as staples like milk and eggs, on the cheap. In the last three months, Family Dollar increased its inventory of "consumables," or food and household goods, by 18 percent in the past three months. It's also planning to double its freezer and refrigerator space by the end of 2012.

So far, the strategy is working. Sales in stores open at least a year rose 4.5 percent in the last three months, with sales of consumables increasing 13 percent.

"More and more people are visiting their local Family Dollar to save money on the things they need every day," Levine said on the call.

While Family Dollar shoppers may pick up cigarettes in an attempt to soothe stress, the move likely won't be doing them any favors in terms of health, as doctors at North Carolina's Levine Cancer Institute know too well. The Cancer Institue, which will open this fall, was established thanks to a $20 million donation from Family Dollar founder Leon Levine, father of Howard Levine, the company's CEO.

Leon Levine, Chairman of the Board of Directors of the Leon Levine foundation, retired from the board of Family Dollar in 2003. "Since that time I have held no position with Family Dollar Stores as a director, executive, major shareholder, special advisor or in any other capacity," he wrote in an email. "My foundation fully supports its grant to establish the Levine Cancer Institute and believes that the Institute will improve the lives of thousands as it will redefine the delivery of cancer care in the Carolinas."

Now, at least, North and South Carolina shoppers can rest assured that if they buy cigarettes at Family Dollar, the Cancer Institute will have their backs down the road.


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Offlinecrackawebsta
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Re: Family Dollar Hopes To Hook Low-Income Shoppers With Cigarettes [Re: LongStrangeTrip]
    #16029233 - 04/01/12 03:24 PM (2 years, 4 months ago)

So will they only be a buck for a pack?:confused:


--------------------

 
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OfflineOGTubs
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Re: Family Dollar Hopes To Hook Low-Income Shoppers With Cigarettes [Re: crackawebsta]
    #16029283 - 04/01/12 03:38 PM (2 years, 4 months ago)

Well the big brands definitely aren't giving them a contract to sell their smokes a dollar a pack. Even in NC


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Invisibleluvdemshrooms
Two inch dick..but it spins!?

Registered: 11/29/01
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Re: Family Dollar Hopes To Hook Low-Income Shoppers With Cigarettes [Re: crackawebsta]
    #16029293 - 04/01/12 03:41 PM (2 years, 4 months ago)

Quote:

crackawebsta said:
So will they only be a buck for a pack?:confused:




I didn't see that in the article. Family Dollar has a great many items that cost more than 1 dollar.


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InvisibleBobby Johnson
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Re: Family Dollar Hopes To Hook Low-Income Shoppers With Cigarettes [Re: LongStrangeTrip]
    #16029339 - 04/01/12 03:53 PM (2 years, 4 months ago)

Quote:

crackawebsta said:
So will they only be a buck for a pack?:confused:





Haha, you never been to a Family Dollar or Dollar General, huh?

Also, all Dollar General sells is USA Gold cigarettes, I'm not smoking USA Gold. And they got name brand shit too these days on everything else, and it's not much cheaper than walmart, cause it's owned by walmart.


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OfflineOjom
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Re: Family Dollar Hopes To Hook Low-Income Shoppers With Cigarettes [Re: Bobby Johnson]
    #16029377 - 04/01/12 04:03 PM (2 years, 4 months ago)

Quote:

StevenMichael said:
Quote:

crackawebsta said:
So will they only be a buck for a pack?:confused:





Haha, you never been to a Family Dollar or Dollar General, huh?

Also, all Dollar General sells is USA Gold cigarettes, I'm not smoking USA Gold. And they got name brand shit too these days on everything else, and it's not much cheaper than walmart, cause it's owned by walmart.



Quote:

StevenMichael said:
Quote:

crackawebsta said:
So will they only be a buck for a pack?:confused:





Haha, you never been to a Family Dollar or Dollar General, huh?

Also, all Dollar General sells is USA Gold cigarettes, I'm not smoking USA Gold. And they got name brand shit too these days on everything else, and it's not much cheaper than walmart, cause it's owned by walmart.




Dollar General is not owned by walmart.


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InvisibleBeefy1
GONE


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Re: Family Dollar Hopes To Hook Low-Income Shoppers With Cigarettes [Re: Ojom]
    #16029647 - 04/01/12 05:04 PM (2 years, 4 months ago)

If they're cheap and not incredibly stale I'll take them.



Local dollar store has a check cashing/western union window. 

Gotta provide what your customers want.


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Offlinedurian_2008
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Registered: 04/02/08
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Re: Family Dollar Hopes To Hook Low-Income Shoppers With Cigarettes [Re: Ojom]
    #16029671 - 04/01/12 05:10 PM (2 years, 4 months ago)

Based on past experience, I would expect:
smaller quantity
inferior quality
discontinued leftovers
dreary shopping experience

When I am dragged there, I find rare gems in the garden supplies and discontinued stuff.

I have been desperate enough to shop in these places, but found that it was usually better to DIY.

I am polite, quiet, of humble means.

But, get the idea that healthy-looking and showered people in these places are made to feel as though they are a long way from home by borderline aggressive people-of-Walmart types.


Edited by durian_2008 (04/01/12 05:17 PM)


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OfflineNullface

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Re: Family Dollar Hopes To Hook Low-Income Shoppers With Cigarettes [Re: durian_2008]
    #16030089 - 04/01/12 06:44 PM (2 years, 4 months ago)

We have local brands here in Kentucky that are about $1 a pack. Red Buck is one that I can think of right now. Actually all cigarettes are really cheap here; about $3 is the average.


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InvisibleBobby Johnson
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Re: Family Dollar Hopes To Hook Low-Income Shoppers With Cigarettes [Re: Nullface]
    #16030166 - 04/01/12 07:05 PM (2 years, 4 months ago)

"Premium" brands like Newport and Marlboro are $5 here.


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Offlinedurian_2008
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Re: Family Dollar Hopes To Hook Low-Income Shoppers With Cigarettes [Re: Bobby Johnson]
    #16030222 - 04/01/12 07:22 PM (2 years, 4 months ago)

Southern California, here. :facepalm:

Have a couple plants on my patio, or buy something fancy on special occasions.


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OfflineSOUTHERN
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Re: Family Dollar Hopes To Hook Low-Income Shoppers With Cigarettes [Re: durian_2008]
    #16030783 - 04/01/12 09:18 PM (2 years, 4 months ago)

lol.. they may start rolling there own cigss outta buglar...


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InvisibleBeefy1
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Re: Family Dollar Hopes To Hook Low-Income Shoppers With Cigarettes [Re: Nullface]
    #16031683 - 04/02/12 01:58 AM (2 years, 4 months ago)

Quote:

Nullface said:
We have local brands here in Kentucky that are about $1 a pack. Red Buck is one that I can think of right now. Actually all cigarettes are really cheap here; about $3 is the average.




I need to make a trip to a tobacco growing state.

I stopped in NC a few years ago and got cartons of camels for $17.  They're probably more expensive now but it's gotta beat the $55 a carton for cheap stuff around here.  A carton of marlboros is like $70

Getting harder to order off the internet too.  and I don't really like the moldovian camels.


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Invisibletrip forever
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Registered: 08/21/09
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Re: Family Dollar Hopes To Hook Low-Income Shoppers With Cigarettes [Re: Beefy1]
    #16040167 - 04/03/12 09:55 PM (2 years, 4 months ago)

Damn, I live in Virginia and a carton here is 40-50. And an average pack of malboros is 3.50 (about the lowest I've seen, although more places are expensive such as 4.50)

At the border station in NC, I saw cartons going for 30-35 at the lowest.


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OfflineOGTubs
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Re: Family Dollar Hopes To Hook Low-Income Shoppers With Cigarettes [Re: trip forever]
    #16043372 - 04/04/12 03:53 PM (2 years, 4 months ago)

Quote:

trip forever said:
Damn, I live in Virginia and a carton here is 40-50. And an average pack of malboros is 3.50 (about the lowest I've seen, although more places are expensive such as 4.50)

At the border station in NC, I saw cartons going for 30-35 at the lowest.




Send me cartons? lol

I'm paying 52


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OfflineNullface

Registered: 09/04/11
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Re: Family Dollar Hopes To Hook Low-Income Shoppers With Cigarettes [Re: OGTubs]
    #16046450 - 04/05/12 07:05 AM (2 years, 4 months ago)

Quote:

OGTubs said:
Quote:

trip forever said:
Damn, I live in Virginia and a carton here is 40-50. And an average pack of malboros is 3.50 (about the lowest I've seen, although more places are expensive such as 4.50)

At the border station in NC, I saw cartons going for 30-35 at the lowest.




Send me cartons? lol

I'm paying 52



That's actually illegal.

Prevent All Cigarette Trafficking Act of 2009 says so.


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Offlinedownlowfunk
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Re: Family Dollar Hopes To Hook Low-Income Shoppers With Cigarettes [Re: Nullface]
    #16047286 - 04/05/12 01:18 PM (2 years, 4 months ago)

Quote:

Nullface said:
Quote:

OGTubs said:
Quote:

trip forever said:
Damn, I live in Virginia and a carton here is 40-50. And an average pack of malboros is 3.50 (about the lowest I've seen, although more places are expensive such as 4.50)

At the border station in NC, I saw cartons going for 30-35 at the lowest.




Send me cartons? lol

I'm paying 52



That's actually illegal.

Prevent All Cigarette Trafficking Act of 2009 says so.




jYah but if you pay w/ bitcoin they cant trace it.  All their legislation is backing them into a corner and people aren't subscribing anymore.


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OfflineNullface

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Re: Family Dollar Hopes To Hook Low-Income Shoppers With Cigarettes [Re: downlowfunk]
    #16047290 - 04/05/12 01:20 PM (2 years, 4 months ago)

If it gets seized you get a fine most likely. That's the problem.


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OfflineOGTubs
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Re: Family Dollar Hopes To Hook Low-Income Shoppers With Cigarettes [Re: Nullface]
    #16048241 - 04/05/12 04:21 PM (2 years, 4 months ago)

Quote:

Nullface said:
Quote:

OGTubs said:
Quote:

trip forever said:
Damn, I live in Virginia and a carton here is 40-50. And an average pack of malboros is 3.50 (about the lowest I've seen, although more places are expensive such as 4.50)

At the border station in NC, I saw cartons going for 30-35 at the lowest.




Send me cartons? lol

I'm paying 52



That's actually illegal.

Prevent All Cigarette Trafficking Act of 2009 says so.




I know, or I would just order them online lol


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