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Dollar Stores Are Taking Over the Grocery Business, and It's Bad News for Public Health and Local Economies
A new report shows growth of dollar stores in low-income and rural communities furthers inequity and pushes out local businesses.
Profiting Off Customers in “Food Deserts”
Two companies, Dollar Tree (which acquired Family Dollar in 2015) and Dollar General, have expanded their footprint from just under 20,000 stores in 2010 to nearly 30,000 stores in 2018, with plans to open yet another 20,000 stores in the near future. Dollar General alone opens roughly three stores a day.Most of these new stores are in urban and rural neighborhoods where residents don’t often have access to fresh fruits and vegetables.
Despite their reputation, dollar stores don’t provide the best deals either [on food].
They often sell products in smaller quantities to keep a low price tag and draw in cash-strapped buyers.
But when comparing per-ounce prices to a traditional grocery store, dollar store customers tend to pay more. Reporting by The Guardian found that the prorated cost of dollar store milk cartons comes to $8 per gallon, for example.
They move into small communities that are too small for Walmart and push out the local grocery store.
Instead of keeping $ in the community like a local grocery store, profits from the Dollar stores goto corporate thus draining the community.
Whereas Dollar stores make their profit off food, local grocery stores make their profit off paper goods and dry goods.
Unfortunately, Dollar stores do actually give a better value at these products thus cutting into the bulk of the local grocers profits.
it’s typical for sales at local grocery stores to drop by about 30 percent after a Dollar General opens.