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Small Town America vs. Big Box Stores

strongtowns.org

21–30 of 79 posts

Re: Small Town America vs. Big Box Stores

#21

Earlier quoted context omitted.

> There's no button to press in a DG that says "sell more eggplants please". Yes, there is. They absolutely manage stock based on demand, as does every other chain store.

As someone who worked at a corporate-private-equity-owned Dollar store (but not DG, specifically), I highly doubt that's true. They "manage stock on demand" in that they count SKUs sold and replenish as needed / as they have availability, sure. And they probably do a inventory / count day once in a while, to account for loss(shrink). But that's about it. They might occasionally get to pick from a few custom options f…

I'm familiar with chain auto parts. They all try and cater to local needs. A store in Texas is gonna have more varieties of A/C stuff on the shelf (we're talking retail parts here, not vehicle specific stuff you buy at the counter). Stores in the rust belt are gonna have more exhaust stuff, etc. I'm only familiar with Napa from a management level and they're kind of the odd one out but as far as the other chains go whether it's corporate calling the shots or store management clearly the work is being done by someone.

Re: Small Town America vs. Big Box Stores

#22
post #9

I _love_ Strong Towns but I want to push back against this article. Strong Towns is a leading voice on YIMBY, but this is reminiscent of the common arguments I hear from NIMBY folks..."they shouldn't be allowed to build here because ____" is definitionally NIMBY. While I don't love Dollar General or shop there very often, I have a hard time understanding why it's a "swindle." The reason people shop there is because t…

> I get that government subsidies tilt the scales it's not just the subsidies that tilt the scales, its also efficiency of scale with the chains being able to do more/cheaper because they are a big chain. and it's really hard to fight that, or even argue against it because it is more efficient. the only thing a small local could do to compete on that front would be able to exploit local features that the chains don't…

I don't have the reference, but apparently there used to be US laws requiring producer / manufacturing / distributing companies to sell to all grocery stores at the same price. Because of this regional and local grocery stores could buy inventory at the same price that Walmart does, and because of that there were a lot more local and regional grocery stores.

At some point (under Regan?) the US got rid of these laws, Walmart in particular realized that it could compete on scale (and aggressively negotiating Walmart-specific deals), and that's a huge part of why we don't have as many smaller grocery stores anymore.

I don't have the article handy but if anyone else knows details about this I'd love to hear more.

(Bonus points for a LMGTFY answer :) )

Re: Small Town America vs. Big Box Stores

#23
post #7

> "we're not against change, we're not against business, if you want to open a nice little coffee shop and bookstore, but Dollar General just isn't quite a good fit." this line stood out to me because it mirrored a lot of debate in my small rural community when a dollar general proposed moving in (spoiler alert: DG won). the debates around DG had a way of exposing some previously-unseen class and economic divisions i…

“it wasn't a NIMBY vs YIMBY thing -- both wanted development”

This distinction isnt the most important point here but this is very much NIMBY-ism. Blocking a development because the community has different opinions about what should be built, particularly opinions they don’t want to fund via their tax dollars is basically textbook NIMBY-ism.

Re: Small Town America vs. Big Box Stores

#24

I feel like this article failed to effectively discuss the very important point that is how these big box stores tend to be a drain on the city's economy. It's sorta there but generally these stores tend to make communities poorer in the long run.

Seemed pretty clear to me: they not only don't pay nearly as much in taxes as local businesses but are subsidized by local taxpayers

Re: Small Town America vs. Big Box Stores

#25

I _love_ Strong Towns but I want to push back against this article. Strong Towns is a leading voice on YIMBY, but this is reminiscent of the common arguments I hear from NIMBY folks..."they shouldn't be allowed to build here because ____" is definitionally NIMBY. While I don't love Dollar General or shop there very often, I have a hard time understanding why it's a "swindle." The reason people shop there is because t…

I've noticed DG stocks oddball sizes of packaged foods I've never seen anywhere else, not even at gas station convenience stores. It's usually their "large" size, and significantly smaller than the "large" size at other stores. Next time I'm in there I'll check the unit price on those. I'm betting it's pretty bad, because usually if a business is doing anything distinctive like that, it's to screw people.

There's a minute or two in this video(1) about DG from Wendover Productions last year that discusses this. Apparently they're so powerful they can get better deals from suppliers than Walmart and even get custom SKUs ($1 sizes of Tide Detergent, for example) from them to be the product on shelves in DG. Kinda crazy.

1) https://youtu.be/vQpUV--2Jao?t=318

Re: Small Town America vs. Big Box Stores

#26

My family lived in a smallish town for a while, and I've gotta say that chain stores were a godsend. We did business with local shops whenever we could, but the stock variety was inherently much smaller than we found at Target (or even Dollar General). Much as we would have preferred to be able to pay our neighbor $1.50 for an item, it was awfully nice to find nicer items for $1 at the chain place. Don't get me start…

> I definitely want to support my neighbors, but I don't want to buy Local Brand Ketchup. I want Heinz, darnit.

For the love of God, why??

Re: Small Town America vs. Big Box Stores

#27
post #7

> "we're not against change, we're not against business, if you want to open a nice little coffee shop and bookstore, but Dollar General just isn't quite a good fit." this line stood out to me because it mirrored a lot of debate in my small rural community when a dollar general proposed moving in (spoiler alert: DG won). the debates around DG had a way of exposing some previously-unseen class and economic divisions i…

Yes, people do unfairly call me a NIMBY but ultimately I’m just trying to make sure that the thing that is being built in my backyard is community-oriented, socially-responsible, ethical, environmentally conscious, and built by local artisans using local materials.

And if we can’t do it right, then maybe we shouldn’t do it.

Re: Small Town America vs. Big Box Stores

#28
post #9

Earlier quoted context omitted.

> I get that government subsidies tilt the scales it's not just the subsidies that tilt the scales, its also efficiency of scale with the chains being able to do more/cheaper because they are a big chain. and it's really hard to fight that, or even argue against it because it is more efficient. the only thing a small local could do to compete on that front would be able to exploit local features that the chains don't…

I don't have the reference, but apparently there used to be US laws requiring producer / manufacturing / distributing companies to sell to all grocery stores at the same price. Because of this regional and local grocery stores could buy inventory at the same price that Walmart does, and because of that there were a lot more local and regional grocery stores. At some point (under Regan?) the US got rid of these laws,…

Robinson-Patman act of 1936? Wasn't got rid of but they stopped enforcing it?

Re: Small Town America vs. Big Box Stores

#29

The tension this article writes about can be expressed to a tech audience as a compression problem. Dollar General wins out on low prices - essentially compressing their value prop onto a single dimension, prices. They won't do the Strong Towns things like sponsor a park or thoughtfully curate what they sell to fit community needs. There's no button to press in a DG that says "sell more eggplants please". The value o…

> There's no button to press in a DG that says "sell more eggplants please". Yes, there is. They absolutely manage stock based on demand, as does every other chain store.

Not necessarily, there's many products DG won't touch, either because of their durability, price range, lack of good sell spots, etc

Re: Small Town America vs. Big Box Stores

#30
post #7

> "we're not against change, we're not against business, if you want to open a nice little coffee shop and bookstore, but Dollar General just isn't quite a good fit." this line stood out to me because it mirrored a lot of debate in my small rural community when a dollar general proposed moving in (spoiler alert: DG won). the debates around DG had a way of exposing some previously-unseen class and economic divisions i…

Yes, people do unfairly call me a NIMBY but ultimately I’m just trying to make sure that the thing that is being built in my backyard is community-oriented, socially-responsible, ethical, environmentally conscious, and built by local artisans using local materials. And if we can’t do it right, then maybe we shouldn’t do it.

That's a great attitude if you can afford it.

But try telling it to the single low-income parent trying to raise their kids who just needs to make ends meet at the end of the month.

Unless you have a massive wealth redistribution plan in place, with massive, extremely progressive local taxes so everyone can afford the massively higher prices you'll be forcing on everyone?

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