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

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

#131

Post by mgkimsal »

vasco wrote: post #121
mgkimsal wrote: post #80

Earlier quoted context omitted.

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…

> I can't think of a way to intrude that isn't intrusive or patronizing. :/ Because it is, people can spend their money however they like and they can value convenience or have any other reason to shop there. Also being old doesn't make them incapable of deciding where to shop.

when you see someone being told "this is $76" and they only have $70, and they have to decide - while I'm waiting behind them - what to put back... the thought of telling them "it's 40% cheaper 1 mile from here" crosses my mind. This exact scenario has played out in front of me 3 times in 2021.

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

#133

Post by mumblemumble »

sokoloff wrote: post #108
mumblemumble wrote: post #87

Earlier quoted context omitted.

It seems like, if this sort of thing is actually happening, then, when we strip away all the specifics, which seem to be a bit emotionally charged, we're left with a clean little fable about capitalism? "A long time ago, there was one store, and prices were high. Then a second store came to town, and prices were low. Eventually, one of the stores closed, so now we have one store again, and prices are high."

I think it's the last step that's not happening here. DG comes in, outcompetes the less efficient alternatives, and then stays DG for the long-run. IMO, making the consumers in the community better off.

Perhaps, though there is that thing about local business keeping the money local to contend with.

At the same time, I'm not convinced we can just assume that to be the case. When a new grocery store in the neighboring town came and put the IGA out of business, my friends were also comparing notes and noticing that the new store paid better than the old one. And offered some things locally where we previously had to drive all the way into the city to get them.

I'm just not convinced these kind of situations can all be neatly fit into a single, straightforward narrative.

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

#134

Post by arrosenberg »

nradov wrote: post #129
arrosenberg wrote: post #117

Earlier quoted context omitted.

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.

Most grocery stores are also chains not opened by locals.

I wasn't arguing in favor of the current system, but against running further ahead in the race to the bottom.

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

#135

Post by fidesomnes »

ybean wrote: post #9
MattGaiser wrote: post #2

Retail makes so little sense now for anything that isn’t very cheap. Otherwise you can just ship it from Amazon, Instacart, or a speciality store.

That is an incredibly privileged response to something like this. No one who is living in poverty or near the edge of poverty can even consider the additional cost associated with shipping or delivery, let alone on a weekly basis for core staples. Reasonably priced fresh food access within walking distance should be a basic right. However, the people who need this most are those who are underserved.

"That is an incredibly privileged response to something like this."

OH MY GOD. HOW DARE YOU SOLVE THE CHEAP DISTRIBUTION OF PRODUCTS, THAT IS A HATE CRIME.

"Reasonably priced fresh food access within walking distance should be a basic right."

You hear that fascists? The goalpost is now moved so that you are violating peoples rights if they cannot walk to buy your reasonably priced fresh food, a "basic" right(!).

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

#136

Post by theyellowkid »

What low income neighborhoods need is one of these:

https://en.wikipedia.org/wiki/Grocery_Outlet

Our local one is excellent, plus the wine deals are amazing.

It's funny how many branded items here are 1/2 the price of the local 'normal' grocery stores.

Of course, when you peek at other peoples' carts, garbage food can be strongly associated with the weight of the cart pusher (or a rough guess at the socioeconomic class), but at least they have the opportunity to eat well on the cheap.

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

#137

Post by clifdweller »

Afforess wrote: post #73
jcims wrote: post #37

Earlier quoted context omitted.

Dollar General is wildly successful because they are filling a need.

No, not usually. Usually they are replacing a less profitable, but larger grocery store with a highly profitable, smaller dollar store. It's a greater profit at the cost of product selection.

In much of the midwest wallmart in 90s went to the biggest cities every 40-60 miles then that led to all local non chain spartan grocery stores going under. Driving back to my parents over past few years have seen all the small towns that used to have a grocery store now have a DG to take care of at least some needs and having to drive an hour for some laundry soap. DG has spent a lot of time figuring out the 60% of what you need with almost all goods same price as walmart

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

#138

Post by thehappypm »

clifdweller wrote: post #126
thehappypm wrote: post #116

Earlier quoted context omitted.

I know this is fiction, but is it really possible to have boots that last 10 years?

a decent pair of redwing boots will run $200-300 and last 18-24 months in a job walking daily before needing a resole ~150 that can be done 2-3 times. mine that I wear a couple times a week I got 18 years ago and have had to do a $50 re-heel of them is it. giving them 48 hrs to dry after wearing really extends the life of the leather

Thanks for sharing!

If you just bought cheap Walmart boots, you'd probably be spending $50 per pair, but need 2 pairs a year (maybe even more, but you're not putting a huge amount of wear and tear), call it $100/year. Over 18 years that's $1800!

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

#139

Post by kingaillas »

cm2187 wrote: post #15

Stupid question from someone who doesn’t live in the US. Do they actually only sell sub-$1 products? It seems they have been operating for 30y. Inflation must severely restrict the range of products you can offer over such a long time.

Part of the business model is to work with manufacturers to offer smaller packaging, i.e. less product, for the same price. Consumers are more sensitive to price and not unit price.

Another strategy would be "shrinkflation" (great Planet Money coverage on this: https://www.npr.org/sections/money/2021/07/06/1012409112/bew...). Over time you'd just sell less stuff for the same price point.

But yes, some of the various Dollar stores have left the strict $1 product rule.

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

#140

Post by jcims »

mumblemumble wrote: post #133
sokoloff wrote: post #108

Earlier quoted context omitted.

I think it's the last step that's not happening here. DG comes in, outcompetes the less efficient alternatives, and then stays DG for the long-run. IMO, making the consumers in the community better off.

Perhaps, though there is that thing about local business keeping the money local to contend with. At the same time, I'm not convinced we can just assume that to be the case. When a new grocery store in the neighboring town came and put the IGA out of business, my friends were also comparing notes and noticing that the new store paid better than the old one. And offered some things locally where we previously had to d…

>Perhaps, though there is that thing about local business keeping the money local to contend with.

I'd say this is to be proven. People that own businesses in broke areas (which is what we're talking about here, no?) are also likely to invest their money in expanding their company in other broke areas, personal financial investments and their children's education.

I live in a relatively rural community where the public schools actually do quite academically when compared across the entire state and we would get families moving into the community because of the excellent care we provide to developmentally disabled kids. Unfortunately the vast majority of people I know that went to college moved out of town and is now generating tax revenue elsewhere.

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