There is not a more convenient supermarket than a dollar store. Many people with little money can go to a dollar store and find everything from toiletries, packaged food, and children’s toys and school supplies. These items are available for a dollar or less (with a few exceptions in the still-super-cheap general dollar chain). It is easier than a ride to the grocery store, providing you with more options than a convenience store, and it is much cheaper than both. Both Dollar General and Dollar Tree are the country’s two largest dollar store chains. Both have approximately 15,000 store locations in the United States in 2018, and that number continues to increase.
Dollar Tree is Earning Profits
Dollar Tree (which also owns Family Dollar as of 2015) went from raking $12.2 billion in gross income into raising $3.38 billion in the first six months of 2019. Dollar General had the same sort of success, receiving $25.62 billion in annual sales in 2019 alone.
Dollar Stores
Dollar stores are not only convenient because their products are cheaper but also because they are available on every corner, making them ideal for a fast trip in between your weekly grocery runs. A company’s success is dependent, in large part, on its location. If you aren’t in a location where you can sell something conveniently, you won’t have a lot of clientele. This is no secret that in the hope of catering to consumers who don’t have a lot of money, a store that sells most items for $1 is going to succeed.
Dollar stores capitalize on this need by opening shops in low-income areas and positioning themselves as a more convenient and cheaper alternative. It doesn’t matter how rich or poor you are, a dollar sounds like an amazing offer for a bottle of shampoo. There’s something you should learn before you start filling up your cart, though. The dollar is not always as good as it seems to be.
You get what you’re paying for in a Dollar store. Although a dollar could be a bargain for certain products, if you can pay for it with loose change, you cannot expect anything long-lasting and high quality. If it’s Dollar General, Dollar Tree, or some other dollar store chain, one of the main ways the company saves money is by selling products made from inexpensive and flimsy materials.
Conclusion
Dollar stores make money because they sell something that customers believe they can’t find anywhere else, and because of that, they take a lot more than a dollar from the customers. Because of this, the vast majority of dollar stores are located in areas that see a lot of “economic distress”.
