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Stores in dollars are facing a rising look



<img class = "center" src = "https://static.lakana.com/mmm-global-us-east-1/photo/2019/07/20/via%20CNN%20Dollar%20Tree%20store_1563614690489 .jpg.jpg.jpg_39018298_ver1.0_160_90.jpg "srcset =" https://static.lakana.com/mmm-global-us-east-1/photo/2019/07/20/via%20CNN%20Dollar%20Tree% 20store_1563614690489.jpg.jpg.jpg_39018298_ver1.0_640_360.jpg 640w, https://static.lakana.com/mmm-global-us-east-1
/photo/2019/07/20/via%20CNN%20Dollar%20Tree%20store_1563614690489 .jpg.jpg.jpg_39018298_ver1.0_320_180.jpg 320w, https://static.lakana.com/mmm-global-us-east-1/photo/2019/07/20/via%20CNN%20Dollar%20Tree%20store_1563614690489. jpg.jpg.jpg_39018298_ver1.0_160_90.jpg 160w "sizes =" 160px "alt =" Dollar stores appear above lower income communities in the United States, but critics say they are restricting access to healthy food

America faces growing control over opponents who claim that discount chains stifle local competition and restrict poor communities' access to healthy food

The dollar shops have never been more popular. Still, a wave of cities have adopted laws restricting the expansion of Dollar General and Dollar Tree, which have bought the Family Dollar in 2015. Companies are the two largest dollar-seller in the country, combining more than 30,000 stores in the US. , less than 20,000 a decade ago. By comparison, Walmart, the largest US retailer, has 4700 US stores.

Defenders of stricter controls on dollar stores say big chains deliberately group several stores in low-income areas. This strategy discourages the opening of supermarkets and threatens the existence of groceries, critics say. public interest and 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 are also concerned that dollar stores do not offer fresh produce. Dollar General and its rivals in the dollar shop mainly sell snacks, drinks, canned food and vegetables, household supplies and personal care products at the lowest prices. "In rural areas without existing grocery stores, given the dollar, it can be seen as an asset," says Christopher Meett, 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 shopping opportunities for customers, 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.

"While dollar stores have spread to our community, healthy food options have dried up," Birmingham Mayor Randall Wuffin told 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 limiting the opening of new dollar stores. Employees in New Orleans, Cleveland and Fort Worth, Texas, are studying plans to curb dollar stores in their cities.

"We are disappointed that a small number of politicians have chosen to limit our ability to serve their communities," said Kristal Gasesemi, a spokesman for the dollar. "We believe adding any new dollar shop is a positive economic growth for the communities we serve."

The 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.

Although the US economy has grown in recent years, the dollar's popularity continues. Salaries for a large number of Americans have increased only modestly.

People living salary salaries have been a great benefit to dollar stores, and chains have also reached higher income buyers looking for discounts.

"While the economy is doing well, our main client continues to fight," CEO Todd Vassos told analysts 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 designed for suburban and middle income buyers, while Family Dollar focuses on lower-income urban and rural customers.

Dollar General seems to build shops in rural areas where a large retailer or grocery store is not 15 or 20 miles. About 75% of Dollar General's stores are in cities with 20,000 or less people, and the chain has its largest footprint in the southern states. (Dollar General has more stores in Texas alone than Costco and Whole Foods are combined nationally.)

"Dollar General's shops often choose to be on the edge of a rural town away from the traditional center," said Meredith. from the University of West Illinois. "This is not much different than what Walmart did 30 years ago."

Dollar stores can be opened quickly in new areas because they are small and have lower operating costs than grocery stores. Dollar General stores averaged 7400 square meters, compared to 40,000 square meters of supermarkets. And shops where only a few workers work are inexpensive to manage. But critics say the unregulated growth of dollar shops is damaging to local communities.

Director of the Agricultural Food Initiative at Kansas State University

Family grocery stores work with thin profits, and dollar stores can find them at lower prices, experts say. Although most US dollars do not sell fresh food, they offer many of the same household and grocery products as groceries. These goods are often the highest margins, and food owners can not afford to lose them, Procter notes.

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

Burnell Kotol, owner of the 9th New Orleans Market, said the grocery store was injured when the Dollar family opened in the neighborhood. The cooker loses valuable detergents, toothpaste and toiletries. , which was devastated by Hurricane Katrina in 2005.

But the family dollar recently shut down, leading customers to the Kotlonu store. "As soon as they closed, my toiletries jumped 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."

Cleveland's adviser Blaine Griffin, who introduced a moratorium on opening new dollar stores, has expressed concern that dollar stores offer fresh fruit or vegetables.

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

He has 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 Good & Smart brand on the dollar, and the store bears the names of the brands like 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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