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The culprits, they say, are the dollar-discount stores in poor neighborhoods that — or so they claim — drive out supermarkets and sell junk food. Never mind that compelling research suggests a lack of supermarkets isn’t the problem — let alone the popularity of discount stores.
Research shows that dollar stores, which provide frozen and processed groceries, can whittle away at supermarkets’ bottom lines, causing the larger stores to close or not enter certain areas.
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Dollar stores are now part of the national shopping habit. As of mid-year 2011, the combined store count of the four major dollar store chains — Dollar General, Dollar Tree, Family Dollar, and 99 Cents Only — has surpassed that of the three biggest national drugstore chains — Walgreens, CVS, and Rite Aid — according to a new study released by Colliers International.
Dollar Tree by Philip Mattera With its 2015 acquisition of its larger rival Family Dollar, Dollar Tree jumped from third place to first (based on the number of outlets) among the deep-discount retailers known as dollar stores. Dollar Tree is now also running neck and neck in terms of revenue with Dollar General, which had long been the undisputed sector leader.
Since the pandemic was declared, consumer visits to dollar stores on the weekends are up more than 20% year over year and up between 5% and 15% on weekdays, according to smartphone location data.
Dollar stores are retail stores that sell common inexpensive products. They operate through buyers who work for a store and find the best bargains on bulk items. Products may also come from the overstock of other stores. This allows them to sell products for lower prices and save consumers money.