Dollar Store Chains Make Up Nearly One Third of All U.S. Store Openings
September 6, 2021 11:54 AM   Subscribe

 




Please note that Dollar General is not Dollar Tree is not other dollar stores. Dollar General is particularly evil.
posted by hippybear at 12:39 PM on September 6, 2021 [19 favorites]


Not surprising at all.

"Major" retailers require too much square footage and thus much more limited selection of locations to choose from, then had to spend huge amount of money to refit and realign the interior to its own design aesthetics and layout.

Dollar stores minimize "backspace" (the storage of stuff not on display) and carry much fewer SKUs so it can fit into much smaller spaces, and thus achieve much better neighborhood penetration than trad retailers. It is also much less vulnerable to theft than traditional "pharmacies" as pharmacies often have expensive items that require stuff to be kept under lock and key and dollar stores don't.

As theft rings organize "raids" on pharmacies in concert and take large amounts of non-perishable items to be flipped on Amazon or eBay in brazen fashion, dollar stores doesn't suffer the same problem as their stuff is just NOT profitable to be flipped, unless in large quantities, then shipping charges gets ridiculous.

So basically we created the environment that allowed dollar stores to thrive.
posted by kschang at 12:43 PM on September 6, 2021 [7 favorites]


Dollar General isn't even an actual dollar store.
posted by jenfullmoon at 1:07 PM on September 6, 2021 [12 favorites]


You think you've got it bad? We have pound shops, that's a $1.38 per item.
posted by biffa at 1:24 PM on September 6, 2021 [3 favorites]


If it has "Dollar" in its name, it counts. Because.

The actual article doesn't really say much of substance, but no doubt it's evidence of something nefarious. Just like when big box stores killed America. And internet vendors killed America. Now medium box stores with Dollar in their names will kill America.
posted by 2N2222 at 1:27 PM on September 6, 2021 [2 favorites]


Am I missing the joke or do items in pound shops being $1.38 make total sense bc £1 = $1.38?
posted by ToddBurson at 1:31 PM on September 6, 2021


Yeah, I'm genuinely a little confused about what the category "dollar store" even means. Dollar stores like Dollar Tree are like 100-yen stores in Japan and pound stores in the UK: they sell cheap, generally-plastic crap for really low prices. I'm not saying they're great, because the cheap plastic crap ends up in landfills, but they're not destroying local economies. Dollar General is a totally different beast: a grocery store that only sells unhealthy food, treats workers like shit, and undercuts local options in communities that are already struggling. I don't think it makes sense to talk about them as if they're the same thing.
posted by ArbitraryAndCapricious at 1:40 PM on September 6, 2021 [21 favorites]


there is Dollar General Market
posted by robbyrobs at 1:56 PM on September 6, 2021 [1 favorite]


Related ProPublica report: How dollar stores became magnets for crime and killing (previous MeFi discussion)
posted by Ahmad Khani at 2:10 PM on September 6, 2021 [5 favorites]


Yeah, I'm genuinely a little confused about what the category "dollar store" even means.

In my experience, Dollar Tree literally offers everything in it for a dollar or less. Dollar General offers cheap stuff, but things in there definitely cost more than a dollar.
posted by jenfullmoon at 2:16 PM on September 6, 2021 [1 favorite]


Now medium box stores with Dollar in their names will kill America.

A good many of their products kill a lot of Americans, or at least make them sick or sicker. Are these stores a symptom or a direct cause of food insecurity? If they make money either way, maybe that doesn't matter so much.
posted by They sucked his brains out! at 2:31 PM on September 6, 2021 [2 favorites]


>no doubt it's evidence of something nefarious.

https://fred.stlouisfed.org/series/SIPOVGINIUSA

ribbit
posted by Heywood Mogroot III at 2:52 PM on September 6, 2021


The actual article doesn't really say much of substance, but no doubt it's evidence of something nefarious.

A sign of growing income inequality, probably. My local Dollar Tree has produced some good deals on occasion, but mostly it's depressing, full of stuff that you buy for a dollar not because you think it's of decent quality or a useful quantity but because you can't afford better quality or value. Of course, the most irritating thing about my local Dollar Tree is that the checkout line is always massive.
posted by hoyland at 2:57 PM on September 6, 2021 [4 favorites]


One of my friends used to work at a Family Dollar. It was extraordinarily ill-run and abusive.

Fortunately, it went out of business so my friend could collect unemployment and get a better job.
posted by Nancy Lebovitz at 3:52 PM on September 6, 2021


Someone should open up a 99 cent store.
posted by Czjewel at 4:17 PM on September 6, 2021 [2 favorites]


100 yen shops beat the pants off of dollar stores.

Half the stuff in my kitchen started out at the 100 yen shop and was worth carrying across the Pacific when I moved, almost a decade ago.

None of the junk I’ve bought at a dollar store has ever failed to break.
posted by The Monster at the End of this Thread at 4:19 PM on September 6, 2021 [5 favorites]


I used to work at a dollar tree, about 15 years ago. We sold cheap knockoff toys, but we also sold name brand silly putty. We sold cases of no name water, but we also sometimes had name brand cranberry juice, albeit in smallish containers. We sold plenty of stuff that was usable but disposable. Most things were kinda poor in quality, but that’s what you expect for literally $1. Our clientele was hugely varied, from homeless people who needed dollar batteries to run their dollar am/fm radios that they listened to through dollar earbuds (those actually lasted a surprisingly long time!) to soccer moms who needed party supplies and helium balloons. On the other hand, when I have visited dollar general and family dollar, I have been appalled to see the same quality stuff sold at the dollar tree, but for 5-15 times the price.

So I guess what I am saying is, they may both be evil, but one is definitely more predatory than the other.
posted by Night_owl at 4:50 PM on September 6, 2021 [6 favorites]


Dollar tree, at least, can be alright for deals on some things if you have a general idea of what prices are in other places, and you understand many things are diluted. I go there somewhat regularly especially if I am looking for a small qty of something that I know I won’t need more of for a while.

But I figured out pretty early that they make their money on a lot of the items they carry that would be cheaper in bulk, even if not a big package. If you can’t do that, then they are making money off you. Given what I see people buying in a part of town that caters to a lot of low income households, this is indeed the majority of the shoppers.

Dollar General can go right to hell.

(But also remember, the biggest bulk isn’t always the best unit price. Walmart is infamous for the biggest package often being a little more expensive per volume/unit, though I’ve seen at grocery stores and Target on occasion)
posted by [insert clever name here] at 5:20 PM on September 6, 2021


iirc a key part of DG's game is that they tend to stock and sell smaller units but the unit price is higher. So while you may get a bottle of ketchup for cheaper than the grocery store, you also ended up with less ketchup, and thus if you end up with DG as you primary ketchup merchant you end up losing money in the longer term while probably thinking you saved money.
posted by glonous keming at 5:44 PM on September 6, 2021


thus if you end up with DG as you primary ketchup merchant you end up losing money in the longer term while probably thinking you saved money.

I'd suspect it's that people are prioritizing reducing their short term grocery bill rather than thinking they're getting a deal. The thing that stops people buying the cheaper per ounce bottle of ketchup isn't lack of math skills, it's [lack of] money in their pocket.
posted by hoyland at 6:13 PM on September 6, 2021 [16 favorites]


It's also a lack of space. I can afford to buy bulk, but where do I put Costco's paper towels and toilet paper in my 1920s house?
posted by mollweide at 6:52 PM on September 6, 2021 [10 favorites]


IME many people in precarity and poverty have limited storage at home and are less likely to own cars. I don't think smaller units are better deals, especially things like toilet paper or peanut butter, but I have to physically carry all my purchases home and then find somewhere to store them.

Pre-COVID, I used to take rideshares home from the grocery store more often and I lived in a bigger place - and I can't be the only one.
posted by All Might Be Well at 6:54 PM on September 6, 2021 [8 favorites]


Someone should open up a 99 cent store.

You joke, but...
posted by egregious theorem at 8:01 PM on September 6, 2021


Rural retail was killed decades ago, so I'm not really sure why it's a big deal that these stores are expanding into that market now. Would it be better if these stores were independently run and part of a retail cooperative like Ace Hardware? Of course. Honestly the fact such a thing can exist at all in late capitalism is a small miracle.
posted by Mr.Encyclopedia at 8:22 PM on September 6, 2021 [3 favorites]


Dollar Tree moved into the spot in my hometown where we used to have a five-and-dime type of store when I was growing up. (And where I had my first "official" job.) A combination of Target and the internet killed off our five-and-dime -- which may have been a five-and-dime for real when it opened in the 40s, but we just called it a "variety store" by the 80s. It sold school supplies, party supplies, cloth handkerchiefs, ladies' white cotton gloves, yarn, toys, seasonal decor. By the mid-90s we had a Target close by, which had MORE of most of those things, at better prices; and by the late 90s people were going online for oddities like white gloves. It was an AutoZone for a while; then the Blockbuster next door went out of business and the AutoZone moved into the Blockbuster and Dollar Tree moved into the old five-and-dime. I'm super-fascinated by the ways it's both similar and different to the old variety store that was in the same spot. Lower-quality stuff in general, many fewer name brands. Obviously not a place you can get a six-pack of gym socks. But a lot of the same sorts of things -- toys, craft supplies, wrapping paper. It's just the variety store carried supersoakers and Dollar Tree carries stocking-stuffers at best. Surprisingly more food at the Dollar Tree, but in such tiny containers! (Which, actually, is great if you want just a little of something -- I don't go through Masa Flour fast enough to buy it at the regular supermarket, but the little mini ones at the Dollar Tree are perfect!)

I'm curious how many Dollar Trees moved in to places that used to be five-and-dimes or corner stores, whose loss was bemoaned at the time, then spent a few years as a Blockbuster or hardware store or pharmacy before becoming a Dollar Tree. I feel like it actually kind-of fills a niche that my town lost when the variety store closed? I mean I can walk four blocks to my town's little downtown and buy $1 wrapping paper when I realize I've forgotten it, instead of getting in my car and driving 12 minutes to the outlying shopping center where the big boxes like Target live. (And then being in Target and spending $108 on random things and forgetting the wrapping paper because DAMMIT.)
posted by Eyebrows McGee at 8:28 PM on September 6, 2021 [7 favorites]


they make their money on a lot of the items they carry that would be cheaper in bulk, even if not a big package. If you can’t do that, then they are making money off you

To be fair, that describes every retail store.
posted by Miko at 8:37 PM on September 6, 2021 [2 favorites]


I wear reading glasses. A couple of different powers, one for the computer screen another for real close-up work. At Walgreens, reading glasses cost upwards of 12 bucks. I had to be ultra, extra, super careful and still I broke them a lot. At The Dollar Tree stores they sell all different strengths for a buck a pair. Mostly pretty dorky styles but not all of them dorky plus who cares -- not I. And it's not like Walgreens reading glasses are stylish either.

Also -- bleach, a buck for a bottle.

And -- cheapo plastic razors, like either 10 or 12 in plastic bag. A buck.

Tooth brushes. Toothe paste, unless you need Toms toothe paste -- I don't.

Super glue, both gel and regular. Other good adhesives also. A buck.

From time to time you'll find decent socks, a buck a pair. No, not wool, not the best on the planet but just ok socks. I have found out that they are great to learn in, also, as some of your better socks are slick and can trip you up -- I use these to practice safe socks.

Cheapo brooms, a buck a shot. Cheap mops, a buck a shot. Plastic scrungy pads for cleaning in the kitchen, a buck. Et cet and et cet.

Dollar General are for shit, other than maybe for spray paint and/or primer, a buck a can, maybe two bucks.
posted by dancestoblue at 8:50 PM on September 6, 2021 [2 favorites]


The thing that stops people buying the cheaper per ounce bottle of ketchup isn't lack of math skills, it's [lack of] money in their pocket.

also known as the Captain Samuel Vimes 'Boots' theory of socioeconomic unfairness
posted by Emily's Fist at 10:19 PM on September 6, 2021 [11 favorites]


Greeting cards, batteries, Colgate toothpaste, plates and cups, napkins, shampoo, makeup..at least once a week I'm in the Dollar Tree.


I may work at Whole Foods, but still can't afford Target.
posted by markbrendanawitzmissesus at 5:40 AM on September 7, 2021


I feel like what's missing from this conversation is the effect of suburban sprawl, and all the fucked-up incentives that got us to where we are now vis a vis dying towns and food deserts. The US is full of small towns that are struggling to keep themselves solvent, where only Dollar General wants to set up shop because of the economics of brick-and-mortal retail. But why do we have all of these towns, full of people who pay property taxes (even if they're not wealthy, or they're renting, SOMEONE is paying property taxes on those houses), that can't make ends meet? Is it the physical size of the towns? Is road/sewer/utility/school maintenance more onerous in less dense places? If it is, why are we bending over backwards to preserve small towns that only exist because of demographic trends 70 years ago?

I grew up in a small town where you had to drive 20 minutes to get to the 7-11 or 30 minutes to get to the grocery store. Personally, I would never in a million years move back there. Others obviously disagree, and would rather have a big back yard, and that's totally cool with me. At a policy level, though, I don't know why we're working so hard to preserve the small-town ethos, when we've got plenty of evidence showing us that a lack of density in the 21st century often leads to Dollar Generals (and nothing else) in Main Street.
posted by Mayor West at 5:51 AM on September 7, 2021 [4 favorites]


I know D&D has enjoyed a resurgence of popularity, but the fact truly hit home when I saw sets of polyhedral dice at the Dollar Tree.
posted by Gelatin at 6:43 AM on September 7, 2021 [4 favorites]


I think the Dollar* stores model is pretty interesting from a financial perspective: First the US has like 36 sq ft of retail for every 1ft in any other country, and that's the average. The majority of middle to upper income places have almost 100 sq ft of retail more. So that means vacancy. Wal-Mart and most other big-boxers demand dedicated, self-constructed space, and even if they build them cheap, that still means they have to self-manage the depreciation.

Dollar Stores take advantage of that retail vacancy and go into existing space - it wouldn't surprise me if they don't have exact spaces in mind, but rather pit two or three vacant spaces against one another for the best rates, and then close the stores when the rent rises to move to a different location.

They can also play these small towns for rent since they aren't typically building retail - I'll bet many of them rent for extremely low rates.


The thing that stops people buying the cheaper per ounce bottle of ketchup isn't lack of math skills, it's [lack of] money in their pocket.

also known as the Captain Samuel Vimes 'Boots' theory of socioeconomic unfairness


For ketchup or other stuff they sell at Dollar Stores? Seriously? Like buying that giant jug of ketchup at Costco is the optimal choice? Maybe they buy 3 sauces at a dollar each to have some variety instead of 3 gallons of ketchup? Seems more likely to me.
posted by The_Vegetables at 8:09 AM on September 7, 2021 [2 favorites]


economics of brick-and-mortal retail

TM TM TM TM nobody write this movie I am writing it
posted by We put our faith in Blast Hardcheese at 10:38 AM on September 7, 2021 [2 favorites]


I'd also like to add another biome to the retail ecology discussion: the discount or clearance store. These stores are the closest remaining descendants of the variety store.

I had personal experience with shopping at Pic N' Save in the 1980's; my mom was an art teaching assistant, and she loved to bargain hunt with her aunt when we visited Southern California. Going to a local Pic' N' Save in the SF Bay Area was a regular treat; I fondly remember buying a few large building pieces that were hollowed out LEGO bricks filled with chewy candies.

Big Lots bought out Pic N'Save (after they rebranded to the excellent moniker MacFrugal's). Big Lots is truly a discount variety store, home of holiday decorations, furniture, random groceries from other regions of the U.S., toys and many $1 Nicolas Cage DVDs. Big Lots is useful for buying basic superhero action figures that have not fallen prey to the collector's craze that has some Target Batman figures topping out at $20.

Grocery Outlet is also a California-originated favorite. Need Easter Candy in August? How about USC Trojans-branded cereal? Leftover U.S. regional test-market flavors, like Peach Crush or Banana KIND Bars? This is a full-range grocery store with many random items organized into grocery store sections. Their new effort appears to be placing stores at the first level of dense housing complexes, as seen in the linked article.

But the ne plus ultra of discount grocery stores I've seen is the Arizona-based American Discount Foods. There are only two locations in the Phoenix metro area. It's a true liquidation store, representing the entire food spectrum from a 10-cent single serve packet of graham cracker Goldfish to a 10-pound canister of mayonnaise. You could easily operate an industrial kitchen for a shelter or community center just from shopping here. Their main angle is the purchase of items that are past their "best by" date, with posted signs quoting studies about food waste and over-estimation of expired packaged foods. The Mandalorian cereal, CLIF Bars for $1.50 per box and many Paramore concert Blu-Rays for $1. Please note that this is a very religious, patriotic store with all 50 state flags on display, constant religious pop music and bible verses available by the door. Great fun to shop there with my bargain-hunting mom. Worth a visit if you're in the area.
posted by JDC8 at 11:13 AM on September 7, 2021 [2 favorites]


Their new effort appears to be placing stores at the first level of dense housing complexes, as seen in the linked article.

Yeah, that's going to be a similar transition, as most of those 'mixed use' buildings are next to existing commercial and retail properties, and the retail portion takes up too much space (some close to 25% of the property, generally 10-30k sq ft) making the existing retail vacancy issue worse [until the stand-alone retail is bulldozed or upgraded to residential or commercial purposes. It's going to be an interesting transition period for sure, to see dollar stores in newly built buildings because that's all that's expanding and all they can attract.
posted by The_Vegetables at 11:58 AM on September 7, 2021 [1 favorite]


Someone should open up a 99 cent store.

When I lived in Manhattan there was a "99¢ store" somewhere down around Penn Station, and it's only when you read the smaller print that you realized they were promising everything for "99¢ or more". I kind of admired the chutzpah.
posted by 43rdAnd9th at 12:20 PM on September 7, 2021 [1 favorite]


economics of brick-and-mortal retail

TM TM TM TM nobody write this movie I am writing it


It bills itself as a "rom-com" but it's mostly a downer exploration of the nature of relationships and the base function of mortality in the failure to communicate.
posted by hippybear at 8:58 PM on September 7, 2021


IME many people in precarity and poverty have limited storage at home and are less likely to own cars. I don't think smaller units are better deals, especially things like toilet paper or peanut butter, but I have to physically carry all my purchases home and then find somewhere to store them.

Yep. There is a Family Dollar about 2 blocks from my new apartment, and that's the biggest thing that is saving me from the aisles full of impulse items I'd have to walk past to get to the other stuff - "sure, that ceramic pumpkin looks cute, but where in the shit would I store it on the off-season?" (Well, that and I think that whole put-pumpkins-everywhere decor aesthetic for fall is stupid.)

I also had a telling conversation with one of the college kids who did the junk hauling when I was cleaning out my old apartment. We were talking about how much of my stuff could be taken to Goodwill and how much was just...well, junk. I admitted that I was a little embarrassed how much of my stuff was probably junk, but that I'd held on to it because I was pretty broke for a while. "Yeah, I hear you," he said, before discussing his own super-dirt-poor childhood. "And yeah, we also had garbage stuff. And - we knew it. But, like, it's garbage, but....you need it." Dollar stores in their various permutations are a thing because of the Sam Vimes "Boots" theory, basically.
posted by EmpressCallipygos at 6:45 AM on September 8, 2021 [2 favorites]


Someone should open up a 99 cent store.

If you're in Texas, Arizona, Nevada or California, I have good news!
posted by JDC8 at 10:46 AM on September 8, 2021


why are we bending over backwards to preserve small towns that only exist because of demographic trends 70 years ago?


I was born in a small town and that John Mellencamp song can go fuck itself; small towns are mostly awful. Although not nearly as bad as suburbs.
posted by aspersioncast at 12:14 PM on September 16, 2021


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