Mainebiz

W W W. M A I N E B I Z . B I Z 19 JA N UA R Y 2 2 , 2 0 1 8 F O C U S C O M M E R C I A L D E V E L O P M E N T " ey're a pretty basic concept as far as the building goes, and the busi- ness model is fairly simple," says Peter Harrington of Portland's Malone Commercial Brokers. He also notes that they don't have a problem fi nding land. "Driving out in the middle of Maine, all of a sudden you'll see a dol- lar store," he says. " ey're eating into Walmart's and Hannaford's business." Wade McDevitt, whose Philadelphia- based real estate fi rm McDevitt Co. brought retailers Anthropologie, Urban Outfi tters and Carhartt to Portland, has a similar observation, saying, " ey're trying to provide a commodity prod- uct." Much as fast-fashion is infl uenc- ing clothing retail, dollar stores are dis- rupting food and cosmetics retail and says that their proximity to customers is key to their success. "It's about a con- venience factor," he says. In some cases, competing stores are in close proximity to one other, some even within walking distance. Maine spending spree In Maine, Dollar General operates 43 stores that collectively employ about 300 people. e Goodlettsville, Tenn.- based fi rm owns more than 14,000 stores and reported $22 billion in fi scal 2016 sales. It's been in Maine — and Rhode Island — since 2015. Dollar General aims to make shop- ping a "truly hassle-free experience" with the most popular brands of "simple necessities" like laundry detergent, toilet paper, socks and underwear, and says its average customer shops in under 10 minutes. By February 2019, it plans to open about 900 stores, remodel 1,000 and relocate 100 others, it announced in December with third-quarter results that beat market expectations. While Dollar General spokeswoman Crystal Ghassemi didn't indicate plans for Maine, she said via email that it chooses store locations based on customers' needs and convenience, since it generally serves those living within a three- to fi ve-mile radius, or a 10-minute drive. "We also take demographic trends, competitive factors, traffi c patterns and community concerns into consid- eration," she adds. Dollar Tree, which is headquartered in Charlotte, N.C., has 100 stores in Maine, of which 38 are Dollar Tree and 62 are Family Dollar, out of 14,744 total across North America. ere are typi- cally 10 to 15 employees per store, with the full- and part-time mix varying by location. Dollar Tree stores are mainly in suburbs and serve a broad range of income levels, while Family Dollar focuses on major urban and rural areas targeting a below-average household- income consumer. Randy Guiler, Dollar Tree's vice president for investor relations, said in an emailed response to questions that "we are pleased with the performance of our stores in the Northeast and will continue to open stores in the region over time." Husson's Walton questions whether the growth momentum can go on for much longer, saying, "It's not going to be a long-term sustainable model unless they're able to diversify. One way they might do that is by acquisition." Mixed reviews As with all new developments in Maine, the response to new dollar stores has been mixed but not enough to stop the expansion drive like in Damariscotta, where the Maine Street Dollar General opened its doors less than two months after voters narrowly rejected a morato- rium on new development. In South Portland, home to Maine's biggest mall, a property on Main Street, also U.S. Route 1, was redeveloped as a multi-unit commercial building with Dollar General occupying the biggest space. " e redeveloped property looks great," enthuses assistant city manager and economic development director Joshua Reny. "Anytime the city sees more inventory come on the market it is welcome, and it is sorely needed with vacancy rates as low as they have been." Reviews from the small business community on dollar stores is mixed. "In general, having more chain stores in the state of Maine is not only detri- mental to Maine's small businesses for all the reasons that people expect, but one that is often overlooked as well," says Will Ikard, director of the Maine Small Business Coalition. "It makes it harder for small business owners to do the right thing by their employees in terms of wages." Surprisingly, two independent retailers contacted by Mainebiz don't feel threat- ened by the dollar-store phenomenon. "I think it' great," said Robert Gardiner II, owner of Damariscotta Hardware on the same street as the new Dollar General. "It brings more people into town." And in Bangor, Rebecca's of Maine co-owner Rick Vigue says that dollar stores "have almost absolutely nothing that we would carry," which includes upscale gifts made in Maine. "If one opened across the street I wouldn't think twice about it." R C , M a i n e b i z s e n i o r w r i t e r, c a n b e r e a c h e d a t @ . a n d @ 855.500.IESC www.iesc1.com Design |Build | BIM Construc on & Renova on UL Listed Prefabrica on Infra-Red Diagnos cs 24/7 Emergency Service Arc Flash Hazard Analysis Fire Alarm & Life Safety Structured Cabling Delivering Value Through Innova on

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