CHICAGO – What’s been the biggest boost for sales at discount retailers? Consumables, according to a BevIndustry.com report. Grocery-type products might have low profit margins, but because customers need them on a weekly (or more) basis, having a good selection of such consumables brings repeat shoppers, said David McGoldrick, a U.S. analyst for Euromonitor International.

When Family Dollar and Dollar General started stocking liquor and cigarettes in some locations two years ago, the chains garnered a new group of customers, said Ali Lipson, senior retail and apparel analyst at Mintel. “Offering these items may encourage more sales as well as capture new shoppers who are specifically seeking these items and may benefit from the low prices,” she said.

The addition of cigarettes brought more shoppers into the stores more often, and grocery products have done so as well, albeit at a much slower pace. “At these stores, their grocery products have been growing a little bit faster than their non-grocery products,” said McGoldrick.

During the past 12 months, average spending at dollar stores jumped 5.9%. During the same time, the total average spending on consumer packaged goods dropped 1.6%, and the grocery channel spending average decreased 2%, according to Information Resources Inc. data. Overall, consumable products captured 63% of dollar and variety channel sales, reaching close to $60 billion last year, according to IBIS World.

What dollar stores have to overcome is the stigma that grocery products might not be as high quality as at other retailers. “There is still a stigma among many consumers that the brands and products offered at dollar stores are of lesser quality than those of other retailers,” said Lipson.