SCOTTSDALE, Ariz. - According to executives from Deloitte Consulting, the dollar channel will continue to post strong growth, competing with traditional retail for both consumers and suppliers, Supermarket News reports.

The results are part of a recent Deloitte consumers/industry study on the dollar channel, which hinted at the high stakes involved.

"There's a significant prize here in the value consumer," said Rich Nanda, principal, Consumer Products, Deloitte Consulting. "And who wins is up in the air."

According to Nanda, CPG suppliers are increasing their attention to the dollar channel, a focus that could spell bad news for other retailers.

"CPG companies are increasing resources in sales to interact with those customers, as well as with insights to win with those customers," he said. "Some are doing tailored product offerings and marketing messages."

He added, however, that CPG suppliers continue to struggle with "channel conflict."

"There is pressure from other trading partners," he said. "New price points and offerings for dollar have implications for traditional retail. So traditional retailers will ask that those additional offerings be made available to them as well."

For more on the growth of dollar stores, see "The Race for Space" from the October 2012 issue of NACS Magazine.