Follow Slashdot blog updates by subscribing to our blog RSS feed

 



Forgot your password?
typodupeerror
×
Businesses

Why Some US Cities are Fighting 'Dollar Stores' (eastbaytimes.com) 384

The Washington Post reports on why some U.S. cities are restricting the spread of discount "dollar stores": Residents fear the stores deter other business, especially in neighborhoods without grocers or options for healthy food. Dollar stores rarely sell fresh produce or meats, but they undercut grocery stores on prices of everyday items, often pushing them out of business...Grocery stores run on thin profit margins -- usually between 1 and 3 percent. And they employ more workers than dollar stores to keep perishable food stocked.

"It's no longer the big-box grocery store" that threatens local businesses, said David Procter, a Kansas State University professor who studies rural grocery stores. "But it's the discount retailer that's coming to town and setting up shop right across the street."

"As the stores cluster in low-income neighborhoods," the Post writes, "their critics worry they are not just a response to poverty -- but a cause."
This discussion has been archived. No new comments can be posted.

Why Some US Cities are Fighting 'Dollar Stores'

Comments Filter:
  • Why fight them? (Score:3, Insightful)

    by Anonymous Coward on Sunday February 17, 2019 @07:45AM (#58134158)

    I thought this was America, where people have choice and freedom to choose what they want to eat. If they are choosing unhealthy shit, that's their choice. There will still be some supermarket if there is a demand.

    • Re: (Score:3, Interesting)

      by Anonymous Coward

      Apparently communities and groups of individuals have zero rights according to you. Just the single individual.

      So the communities of people who fight for municipal broadband are all wrong. Because it comes between the right for an individual to choose Comcast. (Because that's his only choice.)

      I'm libertarian myself and these 3rd grade libertarian fantasies regularly spouted embarass the fuck out of me.

      • Re:Why fight them? (Score:5, Informative)

        by Mr D from 63 ( 3395377 ) on Sunday February 17, 2019 @10:13AM (#58134540)

        Apparently communities and groups of individuals have zero rights according to you. Just the single individual.

        So the communities of people who fight for municipal broadband are all wrong. Because it comes between the right for an individual to choose Comcast. (Because that's his only choice.)

        I'm libertarian myself and these 3rd grade libertarian fantasies regularly spouted embarass the fuck out of me.

        Your are mixing a discussion about 'rights' with market principles, hence your confusion. If you are open to allowing market principles, communities are free to get together and decide not to buy from dollar stores which in the end results in their shutdown or lack of desire to expand in those communities. If enough individuals still shop there, the market will know. However, using legislation to determine who can sell in a community would not be market driven result.

        As to who has 'rights', that is defined constitutionally, and communities do have the 'right' to create such legislation, even if it does not follow market principles.

        Should communities have the 'right' to limit shopping choices for individuals in the community, some or many of who may want to shop at dollar stores?

        Striking the right balance between both can be a challenge, different people will have different opinions on to where that balance line should be.

        • Well said, Mr D.

          There's are three more components in this issue; social connections, revenue, and jobs.

          Re social connections... Locally owned businesses can have a more positive impact on a local community. There is a stronger sense of community or of a social connection. I experienced this myself while working at a small grocery store when I was in high school.

          Re revenue... There have been studies that support the idea that locally owned businesses keep more of the money earned by that business within the

    • Re:Why fight them? (Score:5, Insightful)

      by jonwil ( 467024 ) on Sunday February 17, 2019 @08:09AM (#58134188)

      The problem is that the unhealthy crap sold by fast food joints and convenience stores and dollar stores and the like is cheaper (thanks to farm subsidies and other factors that distort the market) than the good healthy stuff.

      So the retailers who sell the healthy stuff can't complete with the retailers selling the crap which leads to "food deserts" in these lower-class areas where there just aren't healthy options.

      • Comment removed based on user account deletion
      • Oh, also and... (Score:3, Insightful)

        by Texmaize ( 2823935 )
        You are missing one key detail there, chief. Food deserts tend to occur in areas of high crime, which is different than poor. There are poor areas with low crime, and they have grocery stores. It turns out if treat others like shit, they don't open stores. weird.
    • Re:Why fight them? (Score:5, Insightful)

      by Registered Coward v2 ( 447531 ) on Sunday February 17, 2019 @08:29AM (#58134226)

      I thought this was America, where people have choice and freedom to choose what they want to eat. If they are choosing unhealthy shit, that's their choice. There will still be some supermarket if there is a demand.

      There’s another dynamic at play as well. For some people, buying at the dollar store is a budget issue. They cannot afford to buy things like detergent at a grocery store because, even if it is cheaper on a per unit basis, the $5 spent on it means not enough left over for gas or even food. The dollar store is a better match to their cash flow than a grocery store, even if it a worse long run choice. In other cases, the dollar store is near where they live and the nearest grocery store is miles away, making the dollar store the store of choice.

      • Re:Why fight them? (Score:5, Insightful)

        by colfer ( 619105 ) on Sunday February 17, 2019 @09:14AM (#58134346)

        And on the other end of the volume scale, Costco skims off the profitable customers who can and want to buy bulk. Costco also skims off any profitable sector it can simplify and remove from the traditional shop accoutrements around it, like tires. The Costco tire shop only does two things: sell tires and maintain tires. No other repair of any type.

        Prices are not actually that great at Costco, but quality is assured. The quality at the dollar store is typically suspect. I remember some outrageous price for a cell phone charger at a Radio Shack. The clerk told me to go next door to the dollar store. It was a hope-for-the-best situation there. The Radio Shack is out of business though.

        Both dollar stores and Costco are highly capitalized and can big-foot into new markets. They have that in common against locally owned retail. It's the scale of it that makes people nervous, not anti-capitalist ideology. No one doubts these entities give people what they want at the price/quality they more or less want, given the choices (which the companies help create).

    • Re:Why fight them? (Score:4, Interesting)

      by gtall ( 79522 ) on Sunday February 17, 2019 @08:30AM (#58134228)

      Yah! If the people want to choose unhealthy shit, then they have also chosen increased health costs. Of course, those costs don't show up until later years, and then they have the rest of us to pay for them. MAGA.

      • My sister has a summer house in a rural area, 8 miles from a small town. People did buy many items that were a good value but the thing I saw most was lower grade beers like Natural Ice from Anhauser-Busch. A lot of 30 Packs of cheap beer being purchased..
    • by dfghjk ( 711126 )

      It's not their choice if poverty prevents that choice. You may have missed this part: "are not just a response to poverty -- but a cause."

      It would appear, AC, that you believe that "America" stands for f*cking the poor.

    • I thought this was America, where people have choice and freedom to choose what they want to eat. If they are choosing unhealthy shit, that's their choice.

      Indeed. It's also my choice to walk to mars. The fact that I am unable to do it apparently isn't a consideration for your argument.
      https://en.wikipedia.org/wiki/... [wikipedia.org]

      There will still be some supermarket if there is a demand.

      And you just failed economics. ... And failed to read the summary.

  • by SpzToid ( 869795 ) on Sunday February 17, 2019 @07:50AM (#58134166)
    The /. related links suggested the dupe to me. Seriously? https://news.slashdot.org/stor... [slashdot.org].
    • Just because we're talking about the same topic does not make it a dupe. They are discussing different aspects of the same situation.

  • by SPopulisQR ( 4972769 ) on Sunday February 17, 2019 @07:59AM (#58134172)
    Article is just wonderful. Stores are the reason why they are poor.... right. No no, these stores are bad because they sell stuff too cheap! Undercut prices for toilet paper, soap, coca cola and doritos! Have they considered that America is a free country and if it was profitable to sell fresh food, somebody would be selling. Further, a quick google MAP search uncovers a plenty of grocery shops all over Tulsa, OK, including northern part. The hero in the article, the politician, is clear about her background: never lived outside of town.....
    • by hjf ( 703092 ) on Sunday February 17, 2019 @08:26AM (#58134220) Homepage

      Did your analysis include historical "grocery store location", and compare the number of grocery stores over the last decade vs the number of dollar stores last decade?. Oh yeah, it didn't.

      McDonald's sells cheap food. This is the reason why, in America, "fresh food" is expensive. A "free country" where the "free market" has decided it has to be cheaper for a person to drive several miles to a mcdonald's every day and get their food is cheaper than having stuff in the pantry and cooking at home.

      Are you sure there are no "government subsidies" somewhere, skewing your "free market" theories? Because I'm all for free market, but the USA doesn't play fair with free trade. They offer you a "free trade agreement" with zero tariffs for your country. Except after the tariffs they have another layer of regulations that keep your product from being sold in the USA. For example, Argentina has been trying to sell lemons in the US. We can produce them cheaply. But we have quotas on how many we can sell and they need to be a certain size and color... I thought it was a free market and the market would solve it? Why so many regulations? Try selling corn to the USA and let me know how it goes. Ah yes, We have to subsidize these farmers, or they'll lose their jobs.

      • by religionofpeas ( 4511805 ) on Sunday February 17, 2019 @08:34AM (#58134242)

        McDonald's sells cheap food. This is the reason why, in America, "fresh food" is expensive.

        I'm quite sure that people can cook a home meal for less than a McDonalds meal, especially if you have to drive there. Going to McDonalds is just less effort, and very tasty.

        • by Kjella ( 173770 ) on Sunday February 17, 2019 @11:44AM (#58134920) Homepage

          I'm quite sure that people can cook a home meal for less than a McDonalds meal, especially if you have to drive there. Going to McDonalds is just less effort, and very tasty.

          I'm pretty sure the difference is less than in Europe though, there's a lot of good things to say about our social democracy but it's anything but free. Here in Norway if I go to the store the staff cost is relatively small per unit sold and I pay only 15% VAT. If I go to McDonald's to eat it's a service and I pay 25% VAT, though takeaway is just 15%. But the store also have to pay employee taxes (normally 14.1%) + various employee rights, the worker has to pay social security taxes (normally 8.2%), general income tax (22%) and bracketed income tax (0-16.1%).

          The end result is that more than half my money disappears in taxes before the guy/girl on the other side of the counter gets a paycheck. For specialized services you don't really have a choice, but for something like cooking food we usually do it ourselves. Housecleaning is the same or on the black market, I have it done legit and it's near twice the price. We also bring way more packed lunches than what's normal in the rest of the world. Basically the tax burden is not very conductive to the exchange of services, it skews the market towards solving the things we can on our own.

      • Re: (Score:2, Informative)

        by Anonymous Coward

        McD is no longer cheap.
        $8 is not my definition of a cheap meal.
        I can get a whole frozen pizza for about $5.
        I can also get a buffet for $8.50.

        Cities are overpriced because they have to pay for expensive land as well as higher salaries. As a restaurant owner, would you rather pay for a $500,000 building on a $20,000 lot with 50 staff at $8/hr or a $750,000 building on a $1,500,000 lot, with 75 staff at $12/hour? The salary difference exceeds $1 million per year. 50 staff is about what it takes to run 3 shifts

      • Except after the tariffs they have another layer of regulations that keep your product from being sold in the USA.

        The EU does the same, mainly to protect the interests of French farmers. It's said EU farm policy does damage to Africa in an amount greater than all the monetary aid we send there. Not sure if that's true, and recent changes have improved things a little, but there's still an awful lot of protectionist regulations.

    • Re: (Score:3, Interesting)

      by RalphSlate ( 128202 )

      I can understand the sentiment a little bit. The one thing missing from the article's analysis is that when people "size up" a neighborhood, they look for certain visual cues. One of them is the type of retail present. When you drive through a neighborhood and see a dollar store, you classify that neighborhood as "poor". You dismiss it. And while that is most likely a realistic indicator, it harms the neighborhood's chance of becoming less poor, because it's like a scarlet letter on its chest.

      However, I wou

  • Basic Capitalism (Score:5, Interesting)

    by mentil ( 1748130 ) on Sunday February 17, 2019 @08:02AM (#58134174)

    If produce stores can't be profitable without also selling sundries, then I guess people don't want produce bad enough.
    Near where I live, there's a produce store that is always jam-packed full of people. It's like Black Friday at Walmart, all day every day. So the "produce stores can't compete" argument is BS, they just need to make prices reasonable and aim for volume. Produce sections at other grocery stores I go to don't get much traffic, though, probably because the prices are ridiculous and apparently targeted at middle-class shoppers, even the non-organic stuff.

    • by JcMorin ( 930466 )
      Agree, lets stop whimper and start competing properly.
    • I agree with you. It seems like the next step after this is to ban ALDI stores because their efficiencies and cost cutting measures make regular grocery stores more expensive....

      There have been times in my life where dollar stores were very beneficial to me and allowed me to stretch my budget further than I would have normally.

      They fill a need and I really don't understand why government needs to be in the business of picking winners.

      Also, off on a tangent, the idea of municipal liquor stores really makes m

    • Near where I live, there's a produce store that is always jam-packed full of people.

      Sounds like there's not enough produce stores in your area. I wonder if TFA is related to this.

    • I'm in Canada, so maybe the situation really is that dire in the US. But here in Canada, we have people talking about food deserts and all this.

      I was talking to someone lately and they said there's food deserts in Toronto, like in our 'ghetto' at Jane and Finch. It puzzled the crap out of me, because i grew up around there. There were plenty of grocery stores. I thought maybe things changed, so I google mapped the area. Plenty of grocery stores, just like I remember.

      I'm really suspect of all these claims ab

  • by religionofpeas ( 4511805 ) on Sunday February 17, 2019 @08:20AM (#58134210)

    Looks like the dollar stores sell various kinds of canned goods. Nutrionally, there's not much difference between canned and fresh.

    • Looks like the dollar stores sell various kinds of canned goods. Nutrionally, there's not much difference between canned and fresh.

      My brother in law bought some canned meat from a pound store once, even the dogs would not eat it.

      • Well, that settles it then.

        • Well, that settles it then.

          To my mind yes, I've seen those three dogs eat all kinds of disgusting crap, including poop.

          • I would not trust a poop eating dog to give me culinary or nutritional advice, but to each their own I guess.

            • The reason dogs eat poop is because digestive systems aren't able to remove 100% of the nutrients the first time around.
              Ever wonder what sled dogs ate in the Great White North way back when?
              I did. Then I took an anthropology course.... I stopped wondering.
              The Innu eat an almost 100% meat diet and their poop is pretty nutritious the second time around.
              Those dogs know something.

              • It's much easier to get all the nutrition out of meat. It's the herbivores like gorillas and rabbits that have to eat their poop, because the bacteria that help with digesting cellulose are in the colon where it's too late for the intestines to extract all the nutrients.

                Meat is broken down and digested in small intestine. If you eat too much meat, the intestines can just go slower to give it more processing time. Slowing down is not an option for cellulose diets because energy density is too low.

    • Re:canned goods (Score:4, Interesting)

      by drinkypoo ( 153816 ) <drink@hyperlogos.org> on Sunday February 17, 2019 @10:48AM (#58134680) Homepage Journal

      That's only vaguely true if you've been conned into believing that what the grocery store has is ripe, fresh food. Leafy greens aside, that isn't the case. Produce has to be picked under-ripe to even be shipped successfully, as supermarkets do it anyway. It's often gassed to force ripening (depending on product) and much of it lies around in cold storage for long periods before hitting store shelves. Most of this is a side effect of consumers demanding the same produce be on shelves all year, although some of it results from sourcing produce internationally.

      Then, as a sibling comment points out, there's the issue of toxic can liners. Cans are lined with either plastic or epoxy. Plastic liners are more resistant to breaking when cans are dented, but more likely to leach toxics into their contents. And the likelihood increases if the food involved is acidic, which it often is - even if it isn't naturally so like tomatoes, it's often made so in order to further increase shelf life.

      However, much of what they sell isn't canned at all, but it is preserved. And preserved foods are typically pounded full of sugar in order to extend their shelf life. The proliferation of HFCS isn't all involved in its use as a sweetener; processed food manufacturers use it to replace vegetable oil! It has a similar effect on food texture, but doesn't go rancid like oils do. They then cram it full of citric acid in order to cancel out the sweetness. Citric acid has health benefits in small quantities, but in large ones it threatens gut biota, both challenging digestion and also potentially contributing to a host of problems associated with poor digestive system function.

      There's plenty to object to in the limited selection of foodstuffs supplied by Dollar general and their ilk. If they successfully displace real markets, they can do real harm. And we're only talking about the food so far, and not the cheap plastic disposable bullshit that they sell, which only increases landfilling since it's such garbage.

  • The canned food aisles in regular supermarkets are the least profitable part of the store.

    Supermarkets make up for it by selling meat, vegetables and fruit and other fresh items at a healthy markup.

    I buy some things at dollar stores because I can walk to the closest one, the closest supermarket is 3-4 miles away which is too much work in the winter.

    I usually make a planned trip every few months to the three local supermarkets each of which has different things I buy, with vastly differing prices. In the win

  • Red Spots (Score:4, Insightful)

    by jmccue ( 834797 ) on Sunday February 17, 2019 @09:29AM (#58134388) Homepage

    What a dumb article, it is like saying "Red Spots on your skin is the cause of measles, so do not get red spots"

    There are many causes of poverty, Dollar Stores are a symptom. No money is the cause of Poverty. Without a living wage how can one afford to shop elsewhere

  • There are some people who believe they have a right to profit. That doing what they did yesterday is going to work forever, and that they never need change anything at all. Those people don't deserve to stay in business.
    • >"There are some people who believe they have a right to profit."

      Profit is a requisition for business to exist. Without profit, a business cannot survive long. And without the expectation of profit, why would any business start in the first place. Profit is what allows capital to expand, savings for down-turns, attraction investment, incentive to develop, etc.

      >" That doing what they did yesterday is going to work forever, and that they never need change anything at all. Those people don't deserve t

      • by Dunbal ( 464142 ) *

        And without the expectation of profit

        I agree that profit is an expectation, and this supports everything you said. However it is not and should never be a right. Profit must be earned.

        In a free market

        Free markets exist only in Economics textbooks and classrooms. Regulation (which skews the barrier for entry against the less wealthy) and cronyism (which virtually slams it in the face for everyone else) ensure that markets are not free. And that's without even considering other little pitfalls like organized crime, etc.

        other companies will come along who will innovate and can produce newer, better, different, and/or cheaper solutions and undercut the competition, forcing them to do the same or die.

        Provided they survive not only the market

        • >"So how come no one starts a new ISP and undercuts Comcast?"

          Because of government intervention. Almost all ISP's operate in a monopoly granted or created by local or state governments. That is certainly the case here. Nobody can compete with Cox, because the local government gave one and only one company the "keys to the kingdom: way-back-when and then allowed them to provide any services they want on that physical line. Even if the market is supposedly free in that sector, no other company was give

  • This is your system. How many times have I heard that businesses deserve to profit no matter what? Gee a person has to travel for 30 minutes to get healthy food or they can walk out their front door and get junk, I wonder what's going to happen? Suck it up buttercup, or change the system that preys on people.
  • News for Nerds? (Score:5, Insightful)

    by pz ( 113803 ) on Sunday February 17, 2019 @09:46AM (#58134438) Journal

    How is this News for Nerds?

    Is it because dollar stores sell electronic parts?

    Or they have a wide selection of computer games?

    They sell the latest laptops?

    Or they have really advanced IT?

    They compute bitcoin hashes with your body heat when you walk through the door?

    Maybe it's me, but there doesn't seem to be any relevance whatsoever.

    • Re: (Score:3, Insightful)

      by thegarbz ( 1787294 )

      Maybe it's me, but there doesn't seem to be any relevance whatsoever.

      It's you. You're just not the same nerd as those of us interested in socio-economic patterns, especially those that affect my ability to be a food nerd.

  • by AHuxley ( 892839 ) on Sunday February 17, 2019 @10:08AM (#58134514) Journal
    What is it with controlling people and their food?
    People want a nice safe, clean employee cafeteria and the big gov says no.
    People have the freedom to shop for food they can afford and big gov says no.
    To protect a system that has more expensive food people can afford?
    People have a sent income, let them find the food they can afford, enjoy and want to eat.
    Freedom to buy products and services that are near them and at a price they can use everyday.
    Should big gov tell a person how to shop, where to shop and that they have to support more expensive "grocery stores"?

    Will the gov say what can be sold? What the lowest cost fresh produce, meats, fruit will be in a community?
    Food shopping is now gov tracked, gov approved and with gov set prices for set food quality?
    Who sets the price, food quality and what an approved grocery stores is?
    Will the cost of all that gov approval be passed on with a new fresh produce, meats and fruit tax?
    Let the free market set food prices, store locations and what to sell.
    No gov regulation needed.
    • People have the freedom to shop for food they can afford and big gov says no. ...snip...
      Will the gov say what can be sold?

      You don't understand the government at all do you? Big gov (not at all big gov) is preserving your choice in what you eat, not reducing it. All the while somehow it seems to have passed you that the government very much already says what can and can't be sold.

      Will the cost of all that gov approval be passed on with a new fresh produce, meats and fruit tax?

      That super expensive (not really) banana in your store already has that cost applied to it. Guess what, it wasn't significant.

    • by jtara ( 133429 )

      People have the freedom to shop for food they can afford and big gov says no.

      This isn't about "big government", thought. It's about LOCAL government having some say about the merchants in their community. It is about "small gov".

      Not that far removed from Long Island City's recent successful rejection of Amazon.

      You go, L.I. City! They did it without even having to have useless community "listening sessions" where nobody listens, and they just allow residents to vent, and then the developer gets their way.

      We'

  • by guruevi ( 827432 ) on Sunday February 17, 2019 @10:27AM (#58134598)

    These businesses are just capturing what the market wants or can carry. What has really failed, especially in inner cities are both economic and social policies. When it's better for tax reasons to have a single parent family, you're going to drive the poor to single families which long-term causes both economic and social instability of all sorts. When you give people thousands of dollars per month in overvalued coupons every month to buy 'food' (typically sponsored by or limited to Nestle, Kellogg's, Dole products etc) you're going to create a black market which corner shops and dollar stores are really good at fulfilling the demand for. When we were on food stamps a few years ago, the total value of the 'checks' was $2500/month but at the regular grocery stores, the products were about half the price of the value of the stamp.

  • by ledow ( 319597 )

    So...

    Are they selling the same products as the big stores, but at a cheaper price?

    Or are they selling something that big stores aren't selling?

    Because, either way, simple business analysis tells you that you have a problem if that's the case and it's hardly "their" fault that they are undercutting you and giving people things they want.

    I feel so sad for those multi-million dollar store chains that can't over-charge people for basic goods and services because of a dollar-store (or pound shop in my country) d

    • by tomhath ( 637240 )
      The implication is that traditional grocery stores have some kind of altruistic drive to sell fresh produce at no profit. They subsidize it with higher prices on canned goods. But these evil dollar stores don't sell the unprofitable stuff so the grocery stores can't fulfill their mission.
  • Sigh. This is so obviously the bigger stores hiring lobbyists and bribing the government to get rid of their competition. Poor people do not have a choice. They can only buy what they can afford and they (we) can afford almost nothing at all. For those who don't understand go try to live on $20 for a whole week. Just one $20 bill. Then see how often you shop at Whole Foods and notice what you do buy if you are there. Hint, it won't be the salmon or the Manchego cheese. Rich people who lecture poor people a

  • ...give $1 Million worth of tax breaks and incentives to a big box store.

    On the other hand... Give $1 Million worth of tax breaks and incentives to ten smaller local stores.

    Now that I think about it, that won't work. Because all the local cash will go to businesses with city hall connections that don't need it.

    You know, the same ones that don't want the dollar stores in their area either.

  • Special interests in cities do. The motivations are right there in TFS: Margins are razor thin for grocery stores. That's who's fighting.

    Apparently, food is not coveted as much as the grocers assert. If food made money, there would be stores that sold food and no beer and cigarettes and sodas.

    "Yes, we have no toilet paper today -- just food."

    Poor people can't afford upscale food. Eliminating the Dollar Stores isn't going to raise their food budget.

Understanding is always the understanding of a smaller problem in relation to a bigger problem. -- P.D. Ouspensky

Working...