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Dollar-stores overcharge customers while promising low prices

theguardian.com

171–180 of 754 posts

Re: Dollar-stores overcharge customers while promising low prices

#171
post #154

Earlier quoted context omitted.

Has private equity ever done anything good for anyone outside of the investors?

I'm not sure why private equity is singled out here, when every time a public company does a bad (eg. Boeing), people crow about how public companies only care about juicing next quarter's earnings.

Private equity is far worse. It means 100% ownership by a group of sociopaths who are executing on a plan to extract as much cash as possible quickly with no other goals at all.

At least public companies have some diversity in ownership and agenda.

Re: Dollar-stores overcharge customers while promising low prices

#173
post #116

Dollar stores are private equity with a checkout lane. In 2025, Dollar Tree sold Family Dollar to a group of private-equity firms: Brigade Capital Management, Macellum Capital Management and Arkhouse Management Co. https://corporate.dollartree.com/news-media/press-releases/d... It’s a business model cosplaying as poverty relief while quietly siphoning money from the people least able to lose it. They already run on a…

Has private equity ever done anything good for anyone outside of the investors?

> Has private equity ever done anything good for anyone outside of the investors?

If it's not publicly traded, it's super secure from any public accountability.

And while I'm increasingly hostile toward the shareholder model, we do get one transparency breadcrumb from this (gov managed) contrivance: The Earnings Call

Earnings Calls give us worthwhile amounts of internal information that we'd never get otherwise - info that often conflicts with public statements and reports to govs.

Like CapEx expenditures/forecast and the actual reasons that certain segments over/underperform. It's a solid way to catch corporations issuing bald-faced lies (for any press, public, gov that are paying attention).

    AT&T PR: Net Neutrality is tanking our infra investment
    ATT's EC: CapEx is high and that will continue
I'll bet 1 share that there are moves to get this admin to do away with the requirement.

Re: Dollar-stores overcharge customers while promising low prices

#174

> listed on the shelf at $5, rang up at $7.65. Bounty paper towels, shelf price $10.99, rang up at $15.50 I'm sure the US obsession with not putting the actual price (tax included) on the shelf helps a lot with this. I would notice quite quickly if a store would systematically overcharge me in Europe. It'd be much harder in the US where I expect the price on the shelf to not match the price at checkout.

Those prices aren't because of tax; even the highest sales tax wouldn't cause $10.99 paper towels to ring up as $15.50.

Yes, but the US consumers are conditioned to see one price and pay a higher price. You and I might see +40% and think "that's too high a percentage". Others see +something and think "just like every other time". If they even look - I'm sure these items are often in a cart with many other items.

Re: Dollar-stores overcharge customers while promising low prices

#175
post #116

Dollar stores are private equity with a checkout lane. In 2025, Dollar Tree sold Family Dollar to a group of private-equity firms: Brigade Capital Management, Macellum Capital Management and Arkhouse Management Co. https://corporate.dollartree.com/news-media/press-releases/d... It’s a business model cosplaying as poverty relief while quietly siphoning money from the people least able to lose it. They already run on a…

Has private equity ever done anything good for anyone outside of the investors?

Why is private equity different from any other form of organization? Publicly traded companies are even more addicted to getting revenue. Non-profits like universities may not have shareholders, but somehow the price of tuition keeps skyrocketing even faster than the prices at the dollar stores. And it's not like the religious charities have been pure.

Re: Dollar-stores overcharge customers while promising low prices

#176

Earlier quoted context omitted.

Has private equity ever done anything good for anyone outside of the investors?

To me, that is an utterly hilarious question to be posing on this website of all places.

That's a good point. Private Equity is a fairly broad umbrella term that encompasses a variety of investment strategies and business models.

The type of Private Equity that most here are referring to is the type that buys up existing businesses, squeezes as much money as possible out of them, and throws their desecrated corpses in the gutter. These "investors" are a blight on society, this activity should be criminalized, they should be in prison.

But there are a lot of well-meaning investors who do great things for society that also get stuck with the same label.

Re: Dollar-stores overcharge customers while promising low prices

#177

Earlier quoted context omitted.

Private equity are the crows of the economy. They pick off weak / dysfunctional businesses and open space for fresh competition (or for other markets to open up).

Tell that to former JoAnn Fabrics customers.

They should have paid more for the fabric, I guess. Private equity tends to loot things on the way down. Joann was on the way out regardless.

Re: Dollar-stores overcharge customers while promising low prices

#178
post #23
post #19

Earlier quoted context omitted.

I don’t think this is true. Even if pricing in the shelves is accurate, in my experience Dollar General is typically a little more expensive than a normal mid-range supermarket (or e.g. Amazon) for most things.

then why do poor people shop there? is the idea dollar general is strategically misleading them to see prices advertised lower than a normal supermarket but in fact they are higher? i didn't think the article was making that strong of a claim at all. it seemed more like, operations are minimal and staffing short (which in theory enables lower prices) and they linked the staffing issue with simply just not being on to…

> then why do poor people shop there?

While the typical viewpoint is that "poor people" shop there, that's actually somewhat of a misnomer.

Most dollar stores in the US are located in rural locations, and in part because a lot of rural population is also "lower income" they get the appearance of "only the poor shop there". But the part the folks who label the stores as "for the poor" often overlook is the "ruralness" aspect. That dollar store might only be a five to ten minute drive away to grab something, meanwhile the Walmart or Target or other, that likely has the better deal (the 128oz of Tide for 9.99 vs the 8oz of Tide for $1.50) is a forty-five minute drive away one way. So couple 1.5 hours round trip commute, plus fuel costs for that 1.5 hours, and you start to see why folks would more likely shop at the dollar store vs. the store that actually gives them the better deal overall.

That's partly the "magic" of the dollar stores for corporate. They sprout up like weeds in rural areas much like Starbucks sprout up on every corner in cities. And they capture sales largely because by sprouting up like weeds, they are a shorter round-trip drive to grab sometime (esp. to grab those one or two things you forgot last weekend when you /did/ make the 1.5 hour round trip drive to go to the nearest Walmart for the better deals). These store's sales largely come from the 7-11/Starbucks method in the city: convenience.

And couple the above with the fact that in rural USA, there is effectively zero public transportation and very little in the form of uber/cab companies, and so if one does not have a car, one may be stuck shopping at the dollar store 5-10 minutes away even if one knows the stores are gouging.

Re: Dollar-stores overcharge customers while promising low prices

#179
post #116

Dollar stores are private equity with a checkout lane. In 2025, Dollar Tree sold Family Dollar to a group of private-equity firms: Brigade Capital Management, Macellum Capital Management and Arkhouse Management Co. https://corporate.dollartree.com/news-media/press-releases/d... It’s a business model cosplaying as poverty relief while quietly siphoning money from the people least able to lose it. They already run on a…

Interesting. The Netherlands is no class society so rich or poor nobody has any goddamn shame to stand in line at the Action checkout if there's a good sale to be had.

Seeing people in BMWs at the Aldi parking lot. Strange country.

Re: Dollar-stores overcharge customers while promising low prices

#180
post #86

Earlier quoted context omitted.

Good question, was on my mind too. The problem I could see is Walmart style - the predator will beat the prices of the non-predator down until the non-predator goes out of business, then raise their prices again. They can do this because they are operating in other areas with predatory prices, giving them the ability to operate at a loss, and relying on the fact that at least some of those areas are not being challen…

Does this actually happen? If a community opened up a co-op shop that started eating into the revenue of a dollar store, would the dollar store company try to fight back, or would they just exit that market? Yes, I guess well capitalize companies could offer unrealistically low prices, but on the other hand, any kind of co-op or community driven organization has the benefit of not needing the margins. Dollar store in…

Cooperatives do not get rid of the net negative cycle. Ultimately whatever the benevolent entity ends up being, it becomes a contest of who can bear to lose more money.

Cooperatives distribute the losses but it is still a money pit.

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