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Stores for dollars are everywhere. This is a problem for poor Americans



Dollar stores have never been more popular. Yet a wave of cities have adopted laws restricting the expansion of Dollar () ) and DLTR ) who buys the family dollar in 2015. Companies are the two largest dollar-store operators in the country, combining more than 30,000 stores in the United States, compared to 20,000 previously. For comparison, Walmart [19659002] ( WMT ) The largest American retailer, there are 4700 US stores. Defenders of tougher controls at dollar stores say big chains deliberately group multiple stores in low-income areas. This strategy discourages the opening of supermarkets and threatens the existence of Mum and Pop's groceries, critics say.

"The business model for these stores is built on a saturation basis," said Julia McCarthy, senior policy expert at the NGO Center for Science in Public Interest and a critic of dollar stores. "When you have so many dollar stores in one neighborhood, there's no incentive for a full-service grocery store."

Opponents also express concern that dollar stores do not offer fresh products. Dollar General and its rivals in the dollar shop most often sell snacks, beverages, canned food and vegetables, household supplies and personal care products at the lowest prices. to take food and the most important products at low prices. "In rural areas without existing grocery stores, the dollar can be seen as an asset," said Christopher Meret, director of the Illinois Institute of Rural Affairs at West Indies University. Dollar stores bring new revenue from sales and real estate taxes for cities, create jobs and expand customer shopping opportunities, he adds.

The dollar stores see an opportunity to grow even more in America. Dollar General and Dollar Tree have plans to open an additional 24,000 locations.

But MPs from across the country are pushing away.

Last week, the city council in Birmingham, Alabama, unanimously approved legislation that would prohibit shops from making new dollars.
  Birmingham Mayor Randall Uffin is a critic of dollar stores

"While dollar stores have spread to our community, healthy food options have dried up," said Birmingham Mayor Randall Wuffin to CNN Business. The new measure will help Birmingham to attract and retain the groceries in the city's food deserts, he said.

Oklahoma City, Tulsa, Oklahoma and Mesquite, Texas, also adopted legislation restricting the opening of new dollar stores. Officials in New Orleans, Cleveland and Fort Worth, Texas, are studying plans to curb dollar stores in their cities

Growing dollar stores

Dollar stores have been in existence for decades. But they have thrived in the United States since the recession of 2008, when more and more Americans have been forced to tighten their spending.

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Although the US economy has strengthened in recent years, the popularity of stores in dollars continues. Salaries for a large number of Americans have increased only modestly. People living salary for salary have been a great benefit for dollar stores, and chains have reached higher income buyers looking for discounts.

"While the economy is doing very well, our main client continues to struggle," said Todd Vassos, CEO of the dollar last year. The company's major clients earn about $ 40,000 a year or less, $ 20,000 below average earnings.

Dollar General mainly serves low- and middle-income clients in rural and suburban areas. The dollar tree is meant to shop in suburban and middle income while the family dollar focuses on urban and rural low income customers.

Dollar General seems to build shops in rural areas where a large retailer or grocery store is not within 15 or 20 miles. About 75% of Dollar General's stores are in cities with 20,000 people or less, and the chain has its largest footprint in the southern states. [Dollar General има повече магазини само в Тексас, отколкото Costco и Whole Foods правят комбинирани в национален мащаб.]

  Dollar Tree targets suburbs, buyers with average incomes.

"When dollar stores take up the bulk of this business, it really damages their end result," he said.

  Cleveland's advisor Blaine Griffin has introduced a moratorium on opening new dollar stores in the city.

Burnell Kotol, owner of the Lower New Market District in New Orleans, said the grocery store was injured when the Dollar family opened in the neighborhood. Cotlon lost valuable detergents, toothpaste, and toiletries. , which was devastated by Hurricane Katrina in 2005.

But the family dollar recently shut down, leading customers to Cook's shop. "As soon as they close, my toiletries jump back."

"There are almost 100 dollar stores in a ten-mile radius," said Fort Worth's wife Kelly Allen Gray. "They are heavily located in low-to-moderate quarters, which makes them predatory."

And Cleveland's adviser Blaine Griffin, who introduced a moratorium on the opening of new dollar stores, has expressed concern that dollar stores do not offer fresh fruit or vegetables.

"Many of the people living in our communities live in deserts," said Griffin. Dollar stores "push the chains that actually offer good and healthy food options."

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He added about 125 "better for you" items on his shelves in approximately 3,400 stores. He plans to reach 6,000 stores by the end of 2019. The products appear under the brand Good & Smart of Dollar General, and the store names brands such as Annie's, Back to Nature and Kashi.

Dollar General began offering fruit and vegetables for the first time in about 500 stores. Chief Executive Vassos said last year that the dollar could "make a huge amount of traffic" by adding output to rural and urban food deserts. go far enough because they reach only a part of more than 15,000 stores in the company.


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