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Dollar-stores overcharge customers while promising low prices

(www.theguardian.com)
510 points bookofjoe | 1 comments | 07 Dec 25 14:37 UTC | HN request time: 0s | source
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regera ◴[07 Dec 25 21:07 UTC] No.46185157[source]▶
Dollar stores are private equity with a checkout lane.

In 2025, Dollar Tree sold Family Dollar to a group of private-equity firms: Brigade Capital Management, Macellum Capital Management and Arkhouse Management Co.

https://corporate.dollartree.com/news-media/press-releases/d...

It’s a business model cosplaying as poverty relief while quietly siphoning money from the people least able to lose it. They already run on a thin-staff, high-volume model. That 23% increase is not a glitch. They know their customers can’t drive across town to complain. They know the regulators won’t scale fines to revenue.

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sema4hacker ◴[07 Dec 25 21:15 UTC] No.46185228[source]▶
Has private equity ever done anything good for anyone outside of the investors?
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chongli ◴[07 Dec 25 21:51 UTC] No.46185536[source]▶
Private equity are the crows of the economy. They pick off weak / dysfunctional businesses and open space for fresh competition (or for other markets to open up).
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darth_avocado ◴[07 Dec 25 22:37 UTC] No.46186017[source]▶
As far as I’ve seen that’s as far from the truth as it can be. They in fact consolidate terrible businesses, undercut the good ones and drive them out of the market until only they are left, after which point, they get even worse.
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chongli ◴[07 Dec 25 23:29 UTC] No.46186489[source]▶
From what I've seen, they take a terrible business and liquify its valuable assets for their investors, freeing up capital to be invested more productively elsewhere in the economy. Of course those investors could take the money and commission a bunch of statues of themselves, but frequently they do something more productive than that.

A lot of the negative reaction to them seems to me to be mostly emotional. They'll dismantle a business that holds a lot of nostalgic value for people, even though it's long since ceased to be a viable and productive company. But it wasn't their fault that the business was in that situation in the first place! Years of mismanagement and neglect or perhaps disruption from a competitor left the business in zombie-like state. PE came along and put it out of its misery rather than allow it to slowly crumble while depreciating the value of its illiquid assets.

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1. andrew_lettuce ◴[08 Dec 25 00:03 UTC] No.46186753{3}[source]▶
They could do this, but there's not enough targets of this type for the money invested in the sector. They've also proven to not have the advertised & applicable expertise to run companies any more efficiently than current management. Nostalgia had nothing to do with it unless that's one of the company's assets. I've been inside on three PE acquisitions, and 5 sales by PE to new funds. The playbook was the same for them all: predictable, decent cash flow, cut expenses, grow enterprise sales, sell on before long term cracks from lack of strategic investment showed. If anything they accelerated the decline of healthy going concerns, but at each sale the insiders did great.