Dollar stores make up nearly half of all new store openings in the U.S. • Hacker News Board

Re: Dollar stores make up nearly half of all new store openings in the U.S.

#141

Post by mnd999 » Mon, Aug 02, 2021, 7:48 PM UTC

tomjen3 wrote: post #114

mnd999 wrote: post #46

Earlier quoted context omitted.

The natural conclusion of this is no retail at all, no malls and high streets reduced to cafes, hair salons and betting shops (where that’s legal). All retail goes through 2 or 3 big online suppliers with cavernous warehouses that deliver daily in vans or at a premium within the hours via bike or drone. This sounds more dystopian than utopian to me.

Why? Repurpursing the enormous waste of land that does no longer have commercial value into cafes, hair salons, take away places and whatever else seems a more diverse, vibrant place. It also means that if you have some creative use for commercial real-estate you are likely to be charged a lower rent.

I disagree, I think they’ll be mostly empty places, or converted into poor quality housing.

The takeaways will also disappear, why do you need a shopfront when everything is delivered on a moped via an app.

Re: Dollar stores make up nearly half of all new store openings in the U.S.

#142

Post by thehappypm » Mon, Aug 02, 2021, 7:48 PM UTC

bobthepanda wrote: post #118

thehappypm wrote: post #115

Earlier quoted context omitted.

It's really hard to spend $70 at a real grocery store, isn't it? I feel like just a small number of items suddenly you're $100+. You certainly can't buy $1 batteries or light bulbs.

Granted, I'm shopping for myself, but buying goods for only a week or two out I don't feel like I spend $70. If you go to a bulk store like Costco it certainly adds up. I don't go to those places because I can never use the stuff up fast enough before it goes bad.

Costco is a great place to buy non-perishables, dry goods, and stuff you can freeze the excess of. I agree it's hard to eat the fresh stuff but then again I don't have a family.

Re: Dollar stores make up nearly half of all new store openings in the U.S.

#143

Post by chromaton » Mon, Aug 02, 2021, 7:50 PM UTC

mgkimsal wrote: post #80

shagmin wrote: post #64

Earlier quoted context omitted.

I don't think Dollar General is the bad guy so much as a symptom of a problem. As it is, they're often in low income areas and have a high markup. Grocery stores have low margins that prevent them from entering these markets (hence food deserts). Dollar General fills that niche - but as a result low income people who already spend a disproportionate amount of their income on groceries have to pay that higher markup a…

outside of 'food deserts', there may be other factors people shop at DG. There's one a block from my office, and I drop in there now and then to get stuff (snacks, or light bulbs, or whatever). Almost every time I'm in there, I'll see an older person doing what seems to be a weekly shop (or more) - they'll ring up $70+ of stuff - canned/packaged foods. Clearly stuff for meals. They then get in to a taxi or rideshare…

Strike up a conversation. People do like talking about where to shop for the best bargains. "Hey, does this place have a good deal on X? I usually buy that at Lidl."

Re: Dollar stores make up nearly half of all new store openings in the U.S.

#144

Post by HideousKojima » Mon, Aug 02, 2021, 7:50 PM UTC

arrosenberg wrote: post #117

sokoloff wrote: post #59

Earlier quoted context omitted.

Dollar General comes in and offers local consumers a bargain that local consumers strongly prefer. Accordingly, local consumers vote with their feet. Unless the master plan is to run competitors out of town and then change to "Two Dollar General", it seems like Dollar General is good for consumers (at least if you judge by consumers' own revealed preferences).

It's not really great for them when they leave the store and go back to being citizens of their communities. The dollars they just spent aren't being reinvested by the local owner, they're going to a private equity firm based in New York. That's pretty clearly extractive, rather than being a mutually beneficial relationship.

As opposed to my local Walmart, or Kroger?

Re: Dollar stores make up nearly half of all new store openings in the U.S.

#145

Post by xwolfi » Mon, Aug 02, 2021, 7:51 PM UTC

safog wrote: post #40

jcims wrote: post #16

It's not clear to me what the problem is that the article is outlining. The Dollar General near me has the exact same brands as you would find in any larger retail establishment, they just have found a way to stock the 80% that folks typically need. They are filling a niche between the gas station convenience store and traditional grocery/big box retail. They don't have a produce section, just a bit of fruit. Is that…

After a couple of levels of indirection, I think the whole argument hinges on one anecdote. It might indicate a general pattern, but no actual authoritative sources back it up. Original Article quotes "growing evidence suggests these stores are not merely a byproduct of economic distress. They’re a cause of it. In small towns and urban neighborhoods alike, dollar stores are triggering the closure of grocery stores, e…

That's why, when you're a grocery store, you should stay a bit on top and join DG. I would even expect them to ask if you want to franchise with your existing clients.

My dad has such a small business, that was struggling under threat of potential new regulation to increase competition: he joined a big national franchise, destroyed the other stores and now HE is the big store. Maybe some of the same business will have to close, but the clients are happy because prices dropped, my dad can keep his 5 employees and push towards retirement with a valuable business to resell, and the regulator will be happy to see that not only big malls will survive their liberalization attempt.

The only people who lost are people who sat on their hands, looked at the sky in angst and complained people outside the village are coming to change things...

Re: Dollar stores make up nearly half of all new store openings in the U.S.

#146

Post by jcims » Mon, Aug 02, 2021, 7:53 PM UTC

analyte123 wrote: post #130

safog wrote: post #40

Earlier quoted context omitted.

After a couple of levels of indirection, I think the whole argument hinges on one anecdote. It might indicate a general pattern, but no actual authoritative sources back it up. Original Article quotes "growing evidence suggests these stores are not merely a byproduct of economic distress. They’re a cause of it. In small towns and urban neighborhoods alike, dollar stores are triggering the closure of grocery stores, e…

Amusing. My personal experience is that DG is awesome. Before DG in the town I'm familiar with if you wanted to buy basic office or school supplies, basic OTC medical supplies that were not a gas-station 2-pack of aspirin, essentially any cookware, or a better variety of packaged goods than the local mediocre grocery store (like detergent, snacks, juice, sauces) you had to drive over 20 miles. The produce that DG doe…

If there are two underrepresented groups in HN comments its poor folks and people that live in rural communities. This article is just scapegoating 'dollar stores' for scenarios where their growth intersects with environments suffering from incompetent leadership and shitty education as if a) it's the only place these stores exist and b) they are the root cause for the problems being outlined.

Re: Dollar stores make up nearly half of all new store openings in the U.S.

#147

Post by wayoutthere » Mon, Aug 02, 2021, 7:54 PM UTC

sokoloff wrote: post #59

safog wrote: post #40

Earlier quoted context omitted.

After a couple of levels of indirection, I think the whole argument hinges on one anecdote. It might indicate a general pattern, but no actual authoritative sources back it up. Original Article quotes "growing evidence suggests these stores are not merely a byproduct of economic distress. They’re a cause of it. In small towns and urban neighborhoods alike, dollar stores are triggering the closure of grocery stores, e…

Dollar General comes in and offers local consumers a bargain that local consumers strongly prefer. Accordingly, local consumers vote with their feet. Unless the master plan is to run competitors out of town and then change to "Two Dollar General", it seems like Dollar General is good for consumers (at least if you judge by consumers' own revealed preferences).

This is indeed the master plan; DG will flood an area with conveniently located stores, drive out the bodegas and grocery stores, then close DG stores to reduce redundancy (and leave the existing stores to rot). The result are food deserts that encompass inner city neighborhoods where the only thing you can find to eat is hyper-processed and comes from a box.

Dollar General is at the crossroads of a bodega and a grocery store: it’s way better than the bodegas despite not being much more expensive, but it also replaces enough grocery store trips that grocery stores are no longer economically viable.

Re: Dollar stores make up nearly half of all new store openings in the U.S.

#148

Post by greedo » Mon, Aug 02, 2021, 7:57 PM UTC

arrosenberg wrote: post #117

sokoloff wrote: post #59

Earlier quoted context omitted.

Dollar General comes in and offers local consumers a bargain that local consumers strongly prefer. Accordingly, local consumers vote with their feet. Unless the master plan is to run competitors out of town and then change to "Two Dollar General", it seems like Dollar General is good for consumers (at least if you judge by consumers' own revealed preferences).

It's not really great for them when they leave the store and go back to being citizens of their communities. The dollars they just spent aren't being reinvested by the local owner, they're going to a private equity firm based in New York. That's pretty clearly extractive, rather than being a mutually beneficial relationship.

Nonsense. The wages paid to employees are kept local, as is any sales tax.

Re: Dollar stores make up nearly half of all new store openings in the U.S.

#149

Post by wayoutthere » Mon, Aug 02, 2021, 7:57 PM UTC

kennywinker wrote: post #96

sokoloff wrote: post #79

Earlier quoted context omitted.

If Dollar General is not in that neighborhood that has limited choice (or DG closes down/pulls out), is that community made better or worse? I think it's made worse.

Well if the choice is nothing or DG, of course everyone is going to pick DG. And you're right that's the choice many communities are facing. But it wouldn't take much tweaking at a policy level (civic, state, federal) to change that equation and bring business that actually support the community (jobs, high-nutrition and more local products, a venue for community building events, etc). The fact that the choice is DG…

In my neighborhood at least, the closure of the only affordable grocery store led to a number of people selling produce on the street corner out of the back of pickup trucks. This is in the middle of a major city the US northeast.

Re: Dollar stores make up nearly half of all new store openings in the U.S.

#150

Post by ahallock » Mon, Aug 02, 2021, 7:57 PM UTC

jcims wrote: post #16

It's not clear to me what the problem is that the article is outlining. The Dollar General near me has the exact same brands as you would find in any larger retail establishment, they just have found a way to stock the 80% that folks typically need. They are filling a niche between the gas station convenience store and traditional grocery/big box retail. They don't have a produce section, just a bit of fruit. Is that…

I see these springing up in economically depressed areas--that and those check-cashing and payday loan businesses.