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510 points bookofjoe | 1 comments | | HN request time: 0s | source
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modzu ◴[] No.46182408[source]
what's the point of this hit piece? isnt that frying pan with a sticker price of $10 and rung up at $12 still $50 anywhere else?
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jrmg ◴[] No.46182553[source]
I don’t think this is true. Even if pricing in the shelves is accurate, in my experience Dollar General is typically a little more expensive than a normal mid-range supermarket (or e.g. Amazon) for most things.
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modzu ◴[] No.46182598[source]
then why do poor people shop there? is the idea dollar general is strategically misleading them to see prices advertised lower than a normal supermarket but in fact they are higher? i didn't think the article was making that strong of a claim at all. it seemed more like, operations are minimal and staffing short (which in theory enables lower prices) and they linked the staffing issue with simply just not being on top of updating price changes on the shelves
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1. pwg ◴[] No.46185723{3}[source]
> then why do poor people shop there?

While the typical viewpoint is that "poor people" shop there, that's actually somewhat of a misnomer.

Most dollar stores in the US are located in rural locations, and in part because a lot of rural population is also "lower income" they get the appearance of "only the poor shop there". But the part the folks who label the stores as "for the poor" often overlook is the "ruralness" aspect. That dollar store might only be a five to ten minute drive away to grab something, meanwhile the Walmart or Target or other, that likely has the better deal (the 128oz of Tide for 9.99 vs the 8oz of Tide for $1.50) is a forty-five minute drive away one way. So couple 1.5 hours round trip commute, plus fuel costs for that 1.5 hours, and you start to see why folks would more likely shop at the dollar store vs. the store that actually gives them the better deal overall.

That's partly the "magic" of the dollar stores for corporate. They sprout up like weeds in rural areas much like Starbucks sprout up on every corner in cities. And they capture sales largely because by sprouting up like weeds, they are a shorter round-trip drive to grab sometime (esp. to grab those one or two things you forgot last weekend when you /did/ make the 1.5 hour round trip drive to go to the nearest Walmart for the better deals). These store's sales largely come from the 7-11/Starbucks method in the city: convenience.

And couple the above with the fact that in rural USA, there is effectively zero public transportation and very little in the form of uber/cab companies, and so if one does not have a car, one may be stuck shopping at the dollar store 5-10 minutes away even if one knows the stores are gouging.