T-L Photo/JANELL HUNTER The Dollar General located in Neffs provides low prices and convenient shopping to a mostly rural population.

MARTINS FERRY — The triumphs and failures of stores in Eastern Ohio indicate that convenience, low prices and a smaller physical footprint may be keys to success in the retail industry.

Many large chain retailers are finding the market more and more difficult to compete in, with several recently declaring bankruptcy and closing operations. Industry insiders say brick and mortar retail businesses have taken a hit from online shopping and other market forces.

Despite changes in the retail market and the overall economy that have been harmful to other retailers, Dollar General Corp. continues to expand. Dollar General operates close to 13,400 stores across 44 states, and it anticipates adding another 1,000 stores in 2017. The new stores are expected to create 10,000 new jobs, according to Dollar General Corporate Communications Director Crystal Ghassemi.

“All of our stores are company-owned; we do not franchise our locations. We currently have nine stores in Belmont County and one under construction in Flushing. We opened our first store in the county 24 years ago in Martins Ferry,” Ghassemi said. “Dollar General understands the unique needs of customers in rural areas and provides great values on products customers use and rely on every day in compact retail locations. In fact, 70 percent of our stores serve communities with a population of 20,000 or less.”

For example, Neffs has a population of 993 according to the 2010 U.S. Census, and it saw a new Dollar General store open in November. The Neffs store is the newest Dollar General location in Belmont County.

“When choosing store locations, meeting customers’ needs is Dollar General’s top priority. The company looks for places where we can offer customers an easy and convenient shopping choice,” noted Ghassemi. “We know convenience is a major factor in our customers’ shopping decisions as we generally serve customers within a 3- to 5-mile radius, or 10-minute drive.”

Ghassemi added that the company takes demographic trends, competitive factors and traffic patterns into consideration when choosing a store location.

Belmont County Commissioner Mark Thomas is pleased with Dollar General’s strong presence in the region, and he looks forward to even more stores popping up.

“I am happy to hear that there are nine Dollar General stores here now, and we look forward to the 10th soon to be built in Flushing,” Thomas said. “I, too, am being told there will be an 11th store announced very soon in another one of our great villages.”

Dollar General Corp.’s website states the company is one that “embraces substance and simplicity,” and says its mission is “serving others.” The company has been in operation for 78 years and began with its first store in Scottsville, Ky.

“With regard to Dollar General, they have been in business a long time and have a very uniquely successful business model, as I see it,” Thomas added. “They focus on selling a large volume of consumable items, i.e., food items, cleaning products and other household items. I think they have seen that they can do a smaller-size retail unit and sell a lot of items that consumers use daily.”

Thomas believes this helps the chain to keep its prices lower than those of larger retailers. He said the company has less overhead than other retailers, partly because products do not stay on the shelves for long. He also stressed that the company does a high volume of repeat business.

Information provided by Dollar General states that the company’s business model is based on convenience and necessity.

“We design small neighborhood stores with carefully edited merchandise assortments to make shopping simpler,” its website states. “Dollar General saves you time by staying focused on life’s simple necessities: laundry detergent, toilet paper, soap, shampoo, socks and underwear … and maybe a gadget or two that you just can’t live without.”

Like the store in Neffs, the Colerain Dollar General also serves a small, rural population. Assistant Manager Shane Gruse has been with the company for three years at the Colerain location, which has been open for five years. The store employs eight people, two of whom work full time with six part-timers.

“We do a lot of business at this location. We have lower prices here than anywhere else in the area,” Gruse said. “I think we are so successful because we have better prices, better customer service and also because we stay open later than other stores around us. And our store is closer than Wal-Mart. We are very conveniently located for people that live around here.”

Thomas sees all of these aspects of Dollar General’s stores as keys to the chain’s success. He also believes that the online shopping that is prompting other stores to downsize or close is not causing as much damages to smaller retailers.

“The average consumer wants convenience, low prices and product availability, and Dollar General gives them all of it,” he said. “Moreover, it is clear that in the most recent years, the company is focusing its store locations in smaller villages and towns, not near malls and the big box competition. This is very important, too, for many people, especially older adults who do not want to fight traffic and checkout lines.

“One cannot argue with the successful business model, as their growth is amazing in relation to others closing their doors,” the commissioner continued. “Dollar General’s product lines are not ones that people order off of the internet, so its business is not hurt as much as the others we see closing nationwide. I do think that others are taking notice, and we may see growth in this retail market from some of Dollar Generals’ competitors.”

While Dollar General stores are thriving and growing in local communities, several department stores and specialty shops at large retail centers have closed up shop in recent months. At the Ohio Valley Mall, stores such as Kmart, Elder-Beerman, Vanity, Things Remembered, Radio Shack, hhgregg, MC Sports and Woodbury outfitters have already closed in 2017 or are currently preparing to close. Other retailers, including Michaels craft store and Rue 21 at The Highlands and the Paper Shack in Elm Grove, have closed in the Northern Panhandle.

In some cases, new businesses are slated to fill the empty spots those stores left behind. A Marshall’s store is set to occupy a portion of the space vacated by Elder-Beerman, and a new tenant is expected to occupy the building abandoned by the Cracker Barrel restaurant at The Highlands. A couple of stores at the Triadelphia shopping center are expected to expand, and officials with Ohio Valley Mall parent the Cafaro Co. remain optimistic about the future of the St. Clairsville site.

Thomas also said he is optimistic about the future of retail and the mall, largely due to the commitment of the Cafaro Co. At the same time, though, he is happy to see local residents have other shopping options.

“Belmont County is happy Dollar General is continuing its remarkable growth here and we welcome each store, for our residents seemingly love the convenience of locations, pricing and inventory,” he said.