Written by Michael Thervil
Say whatever you want about any type of dollar store whether it be Family Dollar, Dollar Bills, Dollar General, and of course if you have one near you the 99-cent Only Stores which has now officially been closed as of the first of this month in all the states they operate in. These stores are not only an American staple, but they are the backbone of many communities across the United States. Even more than that, dollar stores no matter the band do a lot more than provide millions of American every year with quick snacks, nick-nacks, gifts, treats, frozen foods, and in some stores even clothing and produce; these stores also serve as market indicators of what's to come, especially when General Dollar opened over 1,000 new stores in 2023 alone. That alone should be taken as a huge economic indicator of where Americans are shopping and why as well as the trajectory of where the American economy is going.
What we are saying is when socio-economic times get hard, people in America flock to dollar stores for sustainment. When larger stores can move all of their inventory, many dollar stores are able to take those products and goods and fill that gap that many larger stores can't handle. Moreover, American dollar stores, although more than likely found in socio-economic challenged neighborhoods across America, also serve as a pillar of hope in what is known as “Food Deserts” across both rural and urban America. A Food Desert is a geographic phenomenon where a local population may not have direct access to grocery stores that sell affordable and/or quality fresh food.
All dollar stores across the country are currently at a major risk of being shut down and leaving millions that often depend on stores like these to shut down and the reason for this is because of the high rate of theft that dollar stores perpetually fall victim to. At a rate of nearly 35% of what is known in the retail industry as “shrink” or what commers call theft has taken its toll on all dollar store operations no matter the brand. At that rate, which appears to keep climbing, there is no business that can function under these circumstances. Many dollar store chains around the country have resorted to either literally locking up items on their shelves behind glass or other electronic anti-theft devices or they have stopped selling certain items altogether.
Another issue dollar stores, no matter what the brand is struggling to deal with, are the robberies that occur all too often. It was reported by the gun violence archive that between 2014 to 2021 over 150 people were killed by gun at or around the vicinity of a dollar store type operation. Not many people are asking: “why not just hire security?”. Well stores like these can and some have, However, for those that understand basic economics the more overhead you have the more likely you will have to increase the price point of your items. Hence, your nearest “dollar store” could considerably no longer be referred to as a “dollar store. The issue of robberies articulated as “unsafe conditions” by their employees has led to employees protesting at some locations throughout the United States.
If all the dollar store type operations in America shut down, which is where the trend is appearing to indicate, then that will be devastating for millions of communities across the United States. What's even more disheartening is the socio-economic impact these store closing will have on the combined 300,000 plus employees these stores hire. With the recent closing of all 99 Cent Only stores in America, that adverse impact was felt and sent deep shockwaves to the communities they served which were majority the poorer communities in urban America.
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