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The Dollar Store Backlash Has Begun (citylab.com)

The U.S. has added 10,000 of these budget retail outlets since 2001. But some towns and cities are trying to push back. From a report: A recent research brief [PDF] by the Institute of Local Self Reliance (ILSR), a nonprofit supporting local economies, sheds light on the massive growth of this budget enterprise. Since 2001, outlets of Dollar General and Dollar Tree (which bought Family Dollar in 2015) have grown from 20,000 to 30,000 in number. Though these "small-box" retailers carry only a limited stock of prepared foods, they're now feeding more people than grocery chains like Whole Foods, which has around 400-plus outlets in the country. In fact, the number of dollar-store outlets nationwide exceeds that of Walmart and McDonalds put together -- and they're still growing at a breakneck pace. That, ILSR says, is bad news. "While dollar stores sometimes fill a need in cash-strapped communities, growing evidence suggests these stores are not merely a byproduct of economic distress," the authors of the brief write. "They're a cause of it."

Dollar stores have succeeded in part by capitalizing on a series of powerful economic and social forces -- white flight, the recent recession, the so-called "retail apocalypse" -- all of which have opened up gaping holes in food access. But while dollar store might not be causing these inequalities per se, they appear to be perpetuating them. The savings they claim to offer shoppers in the communities they move to makes them, in some ways, a little poorer. Using code made public by Jerry Shannon, a geographer at University of Georgia, CityLab made a map showing the spread of dollar stores since the recession.

13 of 371 comments (clear)

  1. Dollar Tree near me has a snack aisle by tepples · · Score: 4, Interesting

    We have one near us - it’s not a grocery store. It is a great place to buy greeting cards, gift wrap (or gift bags), stuff like that. The kind of stuff which is priced unreasonably high elsewhere.

    Your Dollar Tree store might be smaller than the one that's about 1.5 miles from my home. It has a party supplies aisle (as you mentioned), a food aisle (mostly snacks), a health and beauty aisle, a toy aisle, and a few others I'm not remembering. I used to hit their snack aisle once every couple weeks for boxes of raisins and "fruit and grain" bars to take to work (until I learned about ALDI, that is).

    Seriously - why should a paper birthday card cost seven or eight bucks?

    Much of that goes into licensing the famous cartoon character that appears on an expensive Hallmark greeting card but not on the cheaper cards that Dollar Tree sells for $1.00 and Walmart sells for $0.98.

    1. Re:Dollar Tree near me has a snack aisle by 93+Escort+Wagon · · Score: 4, Interesting

      Much of that goes into licensing the famous cartoon character that appears on an expensive Hallmark greeting card but not on the cheaper cards that Dollar Tree sells for $1.00 and Walmart sells for $0.98.

      I’m sure this is part of it... but I haven’t found even generic cards for under five bucks most places. And the price listed on the back of the cards I buy at Dollar Tree - which is what you’d pay if you bought them elsewhere - is usually $3.95, $4.95, or even $5.95.

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    2. Re:Dollar Tree near me has a snack aisle by magusxxx · · Score: 3, Interesting

      The reason they're cheaper is because they're last years cards. Every year the card companies rotate out the older material. And then sell the warehouse cases to the dollar stores dirt cheap.

      Heaven forbid there's a chance your middle/upper class customers commit a faux pas of giving someone a card they got last year? *gasp*

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      Care killed the cat, but satisfaction brought it back.
  2. SJWs at it again by Anonymous Coward · · Score: 5, Interesting

    I live in remote rural Appalachia. The last couple of years have seen an influx of Dollar General stores al over the region. They have opened in isolated communities that had NOTHING. Not even a place to buy a coke or a pack of gum. At Dollar General you can buy household supplies, clothes, food, all sorts of things that make life easier, far easier than driving 50 miles to a Walmart.

    This article is myopic and is only concerned with ghetto people who might live 5 miles from a decent grocery store. Try living 50 miles from one and see if Dollar General is a problem. To folks around here it is welcome and improves quality of life.

    1. Re: SJWs at it again by Anonymous Coward · · Score: 1, Interesting

      It seems like you fail to understand the wider implications outside of your own situation

  3. Egad. Cheap food isn't evil. by RyanFenton · · Score: 5, Interesting

    Listen - cheap goods aren't a magic bullet cause of economic stress.

    If I made a farming robot that grew a variety of high quality food for $0.05 a kilogram, and sold it to people for $0.07 a kilogram, it would mean that a lot of folks would be spending less money - and I might even put some types of business out of a market niche - but that does NOT have to cause mass poverty.

    Rather, it causes a limited market failure. Market failures are where the ideals of 'free markets' break down - because they tend to happen when there isn't any room for incentives left.

    I'd say this is ideally where the basic role of government lies. Government in this case meaning a group of people that decides common shared action for their mutual shared benefit.

    When goods are too cheap for markets to pay people a living wage to have them on market - that makes it a perfect role for a government to play, to literally share the burden of, for instance, making sure that no one starves from neglect, or is unable to live productive lives for not benefiting a company enough.

    Those flaws are 'externalities' to a corporate mindset, but the whole reason we work together as human beings outside that mindset.

    Being able to produce practically endless amounts of good quality cheap food is a legitimate cause for real celebration - I don't find the argument that because it can also cause limited market failure to be a flaw.

    Back in time, corporations were things that often existed for a limited time to serve a common community need, which were then dissolved when that need was met - it's why we still have corporate charters on them.. I think that may have been a healthier way to view that balance.

    I mean, we've been taxing folks to keep farms alive for generations now - it's a legitimate logical problem letting market forces eliminate our agricultural infrastructure. Basically every part of society still has some aspects of it that supersede some market ideal - no matter how capitalist we idealize ourselves to be.

    Ryan Fenton

  4. The real reason by wyattstorch516 · · Score: 4, Interesting

    Dollar stores don't provide union jobs. If they did nobody would have a problem with the goods they are selling but when union grocery stores go out of business due to high labor costs their political friends jump into action to stop the competition.

    These stores are thriving because they are offering the products that people want to buy at prices that they can afford. Most sane people would not have a problem with that.

  5. Re:Wait... Dollar Tree? by Kohath · · Score: 4, Interesting

    Yeah, Dollar Tree is good. AA batteries are 8 for $1. You can get stuff like soap and other misc household items. You pay 2x as much for the same stuff at the grocery store.

    This article is ridiculous.

  6. Re:Egad. Cheap food isn't evil. by 93+Escort+Wagon · · Score: 3, Interesting

    I mean, we've been taxing folks to keep farms alive for generations now - it's a legitimate logical problem letting market forces eliminate our agricultural infrastructure.

    Well, especially with food there’s a legitimate argument to make that a country needs to be at least marginally self-sufficient for purposes of self-defense. In the US, for example, it’s probably true that without any subsidies the vast majority of our food production would migrate to outside our borders (a fair bit of it is there already) - which could be problematic in wartime.

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  7. Re:Gaps between Walmarts by Anonymous Coward · · Score: 2, Interesting

    How the fuck can people live out in these god forsaken backwoods

    I have a rifle range.

    I have game. I have a 55' antenna tower and talk to the world on HF.

    At night it's quiet. Dead quiet. No traffic, no sirens, no idiots with 500W subwoofer hoopties.

    I know my neighbors. Shit poast on the interwebs all you want, but if you come here watch your mouth.

  8. Re:Gaps between Walmarts by tepples · · Score: 3, Interesting

    How the fuck can people live out in these god forsaken backwoods places where you have to drive for a half hour to get to a bodega?

    Would you prefer that farmers moved to the city and stopped farming? Then you'd have nothing to eat. Or would you prefer that farmers moved to the city and brought their animals with them?

  9. Re:That's an economic signal by hey! · · Score: 4, Interesting

    This is what sociologists call a self-fulfilling prophecy.

    Years ago I worked in public health, and there was an analogous process that occurred with illegal tire dumps. Someone would be driving to the dump and decide to save the tipping fee by tossing their tire by the side of the road. Then a second person would come along with an old tire, and figuring that two tires really aren't any worse than one, he'd dump his there too. The process would snowball at an extraordinary rate, and soon you'd have hundreds, thousands, or even millions of tires. The largest were called "tire mountains", weighed tens of thousands of tons, and were too expensive to move for reprocessing. It's cheaper to build a tire reprocessing plant on site.

    Here's my point: there isn't anything inherently special about that spot along the side of the road. Destiny didn't mark single it out as the future site of a tire mountain. Some random person decided to treat it as a place to dump his crap, and because people are herd animals that triggered a crap tidal wave.

    There's nothing inherently special or irredeemable about shithole neighborhoods either. But once the world decides they're places to shit on, there's nothing the people living there can do about it.

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  10. Re: Wait... Dollar Tree? by drewsup · · Score: 3, Interesting

    Same in the UK , what used to be small private shoos are now taken over by pound stretcher or pound world, usually with a gold buyer/ pawn shop next door and and an obligatory betting shop next to that, it does say alot about the declining middle class...