Dollar Bill's broadens merchandise lines in NYC store - Dollar Bill's General Store - Off-Price Apparel Census

Discount Store News, Sept 22, 1986

Dollar Bill's Broadens Merchandise Lines in NYC Store

NEW YORK -- By this Christmas, along with a man's suit discounted at $249, shoppers at Dollar Bill's General Store will be able to purchase branded off-price women's wear for the first time.

What shoppers won't find when Dollar Bill's completes the "super expansion" of its single store in Grand Central Station is a name change. Yet, despite the five-and-dime store image Dollar Bill's name conjures up, the store sells better off-price branded and private label merchandise, including housewares, consumer electronics, health and beauty aids, candy and tobacco.

For the fall, the store is also adding men's and ladies shoes, accessories and jewelry in addition to women's wear, said vice president, general merchandise manager and part owner of the nine-year-old store, Marcel Braha.

Also, the men's wear assortment will be expanded to include more traditional, conservative offerings to supplement its trendy fashions, Braha said. In doing this, the men's wear department will be expanded from 2,000-sq.-ft. to 5,000-sq.-ft.

To make room for these merchandise changes, Dollar Bill's took over the neighboring former disc-O-mat store and is adding two new levels to create a four-level, 25,000-sq.-ft. store.

Addition Layout

The finished store will carry men's wear, shoes and housewares on the main level; H&BA and cosmetics on the upper level; women's wear, accessories and jewelry on a lower level; and fine tobacco and gourmet consumables and candy on a lower sub-level now being used for office space.

With this expansion, the store is cashing in on its prime location: the heart of midtown Manhattan, an area jammed with suburban commuters and lunchtime shoppers.

The store targets middle-income, as well as affluent executives, who are willing to shop in a no-frills environment for sharper prices on better merchandise.

"We're geared towards the highest, top-of-the-line merchandise," said Braha. "In housewares, clothing, health and beauty aids, the better the product, the better it moves.

"You could buy ties for $3 outside (on the sidewalk). We have nothing to do with that. Our opening price point on silk ties is about $14. We will not switch to a silk tie without the same quality for $8 or $9," he said.

In adding the women's wear categories, Dollar Bill's will follow the buying strategies already in place for men's wear purchases.

About 30% of Dollar Bill's men's wear assortment is branded, with store signs proclaiming 20% to 80% off brand name merchandise. Although the labels are kept inside the garments, the signs above the fixtures read "Cannot Advertise Designer Name." The balance of the assortment, 70%, is private label.

Braha said the extensive private label program allows the store to be timely with its offering of current styles and colors, while establishing its own standards and price points.

"A lot of discounters move after facts. I will move at the right time," he said.

"Our private label is the very best," he added. "We don't skimp on it. We want the best swatch, we take the new look-draped, oversized, double-pleated, triple-pleated, a lot of detail. My private label program is not really geared to a lower end customer. Our customers recognize features, color and details."

At a recent visit, the store was offering men's suits, both designer and private label, at $199.99, $249.99 and $349.99 price points. Designer shirts were priced from $9.99 to $29.99.

This fall, the store is planning to add more traditional men's wear like pin-striped suits and oxford button-down shirts to supplement the "trendy high-fashion looks." Fixtures for both apparel, as well as other categories are kept basic, with suits hung on piperacks along the walls and shirts and sweaters stocked on wooden tables. The renovated store will feature new windows, revolving doors and a remodeled wood ceiling.

Even with the addition of women's wear, Braha has no intention of adding fitting rooms to the store's layout.

"We don't want to compete with stores that sell $500 and $600 suits and offer custom service," he said. "We are delivering a fine garment at the lowest possible price."

Instead, the store has a liberal return policy. In-store signs cite a seven-day return for full refund, but the store generally will accept a garment even after several months have passed.

The store also keeps expenses down by not advertising, except during the Christmas season, when the store uses co-op dollars for local radio spots.

Even so, the store's reputation has grown so that thousands of shoppers register for Dollar Bill's annual one-day November sale. During that day, only shoppers with invitations are admitted into the store for a special sale. Shoppers usually begin lining up at 5 a.m., and the store starts to serve free hot beverages, croissants and cakes outside at 6 a.m.

Recently, the store has received offers to franchise the concept, to buy the store or to open in other sites across the country.

Braha was deliberately vague about his response to these solicitations. "Anything is possible," he said. "Dollar Bill's is a success story beyond our imagination. When the right time comes, we'll capitalize on the idea to the utmost."