this post was submitted on 11 Apr 2024
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Economics

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These are tough times for two big US dollar store chains. In the past month, Family Dollar said it will close nearly 1,000 stores and 99 Cents Only said it will go out of business.

Both companies said inflation and shoplifting have contributed to their troubles. While inflation has pressured the companies’ low-income customer base and shoplifting has squeezed their profits, those factors alone can’t explain their difficulties.

Years of strategic mistakes and underinvestment have plagued Family Dollar and 99 Cents Only, retail analysts say. Both brands were acquired by other companies and faltered under their new owners.

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[–] Gigan 10 points 7 months ago (3 children)

Good, they just sell cheap crap that promotes over-consumption.

[–] iamdisillusioned 34 points 7 months ago (1 children)

If you don't have 99 cent only stores in your area, you may not realize their stores are about 50% food and many people buy just essentials there. We also have dollar tree, which is mainly cheap crap. We just got a five below, now that store is entirely unneeded junk.

[–] [email protected] 1 points 7 months ago (3 children)

It cost more. When I had a $200 budget for food a month I went to Costco and bought a bug bag of rice, 5 dozen eggs, fuck ton of tuna fish, and dried mashed potatoes. Buying in bulk is the way and the shit at dollar stores cost way more per quantity.

https://www.businessinsider.com/dollar-general-dollar-tree-pricier-per-ounce-shoppers-still-benefit-2023-8

[–] Woozythebear 23 points 7 months ago

People don't have money to buy in bulk... I don't think you realize how many people are trying to feed themselves for $15 a week.

[–] iamdisillusioned 8 points 7 months ago (1 children)

It's true that items can cost more pound for pound, but there's still a place in the market for them. I see a lot of elderly people shopping at the one near me. That demographic may eat very little and live in little spaces where it is hard to store bulk goods. They may have mobility issues and find it difficult to travel to Costco and carry/manage those large bulk items. Maybe getting rice and dry goods there is economical but produce, meats and breads may go bad before they are consumed in single person households.

[–] [email protected] -3 points 7 months ago

All of that takes up less space than a mini fridge but I will give you that it is a bit unweildy to get home. You could get a months worth of food on two or three bus rides. All of that stuff is stable for at least a month. I did that for 2 years while trying to survive on minimum wage.

[–] [email protected] 1 points 7 months ago

Also the dollar store charges a TON for membership and won't let you shop unless you provide your clearance papers.

[–] [email protected] 14 points 7 months ago (2 children)

The Family Dollar is the closest store with basic essential groceries (bread, milk, etc) to where a friend's parent lives. The actual grocery stores are 30+ minutes away.

This just contributes to the increase of food deserts in some areas.

[–] paultimate14 13 points 7 months ago (1 children)

The dollar stores themselves are part of the problem. They are huge national chains that helped to push out the smaller grocery stores that originally served those communities.

[–] Jimmycakes 2 points 7 months ago

In what year are you from time traveler?

[–] Drivebyhaiku 5 points 7 months ago

Maybe this is an opportunity for the return of the family owned convenience store?

[–] Son_of_dad 3 points 7 months ago

My dollar store sells a lot of stuff I use in my kitchen and around the house at a fraction of the price of anywhere else. I guess some are junky stores but the ones I go to have good stuff