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hst2

This is one chain store that is thriving in the economy

70 posts in this topic

Dollar stores are dominating retail by betting on the death of the American middle class

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The Wall Street Journal reported that Dollar General has become one of the most profitable retailers in the US by opening more locations in places across the country that have continued to struggle economically. ..."The economy is continuing to create more of our core customer," Dollar General CEO Todd Vasos told the WSJ.... "We are putting stores today [in areas] that perhaps five years ago were just on the cusp of probably not being our demographic, and it has now turned to being our demographic," Vasos said.  

As department stores like Sears and Macy's have struggled to grow sales, dollar stores and other super-budget retailers are dominating.

From 2010 to 2015, dollar store sales grew from $30.4 billion to $45.3 billion in the US. While retailers close thousands of stores across the US, the WSJ reports Dollar General is planning to build "thousands more stores, mostly in small communities that have otherwise shown few signs of the U.S. economic recovery."

 

Edited by hst2

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It's easier to drive 12 miles over one mountain ridge to the nearest  Dollar General than it is to drive the 33 miles over 4 mountains to the closest Wal-Mart. 

Rural living has its own challenges.

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There was a small grocery store in Madonna (highest elevation in Harford County) that closed up and was replaced by a Dollar Store. 

This is a great story, trust me. 

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Walmart has a new competitor to worry about — and this time it’s coming from overseas.  Aldi, a Germany-based chain whose supermarkets offer deep discounts on a selected assortment of groceries, announced big expansion plans Monday, saying it will spend $3.4 billion to enlarge its chain to 2,500 stores nationwide by the end of 2022. That’s up from the current tally of 1,600 stores across 35 states, which Aldi has quietly amassed since it first entered the US in 1976. Aldi says the planned growth spurt will make it the third-biggest US supermarket behind Walmart and Kroger, serving 100 million customers per month. Walmart, which currently is the No. 1 player in the $800 billion US grocery market, with a 17 percent chunk of the total, will have to invest $3 billion to $5 billion over the next five years to maintain the lowest grocery prices. That’s according to Brittain Ladd, who has advised retailers — including Amazon — on strategy, supply-chain management and groceries. He has also has been studying Aldi since 2008. “Aldi is gunning for prices 21 percent below competitors in the US,” Ladd told The Post, saying his big-dollar spending estimate is what will be required for Walmart to “defend market share” in groceries. Aldi sells mainly private-label groceries and focuses on the top 20 percent of supermarket product lines that generate 80 percent of sales, according to Ladd. As such, Aldi stores average just 12,000 square feet, versus 50,000 square feet and up for traditional US supermarkets like Kroger.

 

 

 

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12 hours ago, FatBoy said:

There was a small grocery store in Madonna (highest elevation in Harford County) that closed up and was replaced by a Dollar Store. 

This is a great story, trust me. 

That market opened and closed several times over the years. Closest market for that area is Forrest Hill or cross MD line to PA.

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The success is due to one word. The same word that created McDonald's and is rapidly taking over the US clothing, electronic, appliance and other US retail markets.  Convenience!

 

 

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11 minutes ago, kandace said:

Walmart has a new competitor to worry about — and this time it’s coming from overseas.  Aldi, a Germany-based chain whose supermarkets offer deep discounts on a selected assortment of groceries, announced big expansion plans Monday, saying it will spend $3.4 billion to enlarge its chain to 2,500 stores nationwide by the end of 2022. That’s up from the current tally of 1,600 stores across 35 states, which Aldi has quietly amassed since it first entered the US in 1976. Aldi says the planned growth spurt will make it the third-biggest US supermarket behind Walmart and Kroger, serving 100 million customers per month. Walmart, which currently is the No. 1 player in the $800 billion US grocery market, with a 17 percent chunk of the total, will have to invest $3 billion to $5 billion over the next five years to maintain the lowest grocery prices. That’s according to Brittain Ladd, who has advised retailers — including Amazon — on strategy, supply-chain management and groceries. He has also has been studying Aldi since 2008. “Aldi is gunning for prices 21 percent below competitors in the US,” Ladd told The Post, saying his big-dollar spending estimate is what will be required for Walmart to “defend market share” in groceries. Aldi sells mainly private-label groceries and focuses on the top 20 percent of supermarket product lines that generate 80 percent of sales, according to Ladd. As such, Aldi stores average just 12,000 square feet, versus 50,000 square feet and up for traditional US supermarkets like Kroger.

There is an Aldi's in Bel Air now. 

Aldi owns Trader Joes.

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People like low prices.  Sears started selling Chinese junk that was overpriced.  Their selections were poor and the they sold off the brand names that made them.

Macy's charge prices that are too high for clothes made by overseas shops in the likes of Indonesia, Pakistan, etc.

Dollar Stores don't compete with either of the above.  They compete with chain grocery stores, chain office supplies stores, etc.

It is funny however, watching leftists lament the competition to and failure of large chain stores that are the real ones responsible for killing those mom and pop stores that they think were so important but really basically convenience stores.

Online sales hurt stores like Sears, Macy's, and others more than anything.  Ever hear of Amazon.com?

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8 minutes ago, FatBoy said:

There is an Aldi's in Bel Air now. 

Aldi owns Trader Joes.

That's not quite true. They are both owned by two brothers. One owns Trader Joe's and the other owns Aldi. In Europe they split stores north/south. Here in the US they have two entirely different franchises.

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Dollar General is not a dollar store, despite the word dollar in it's name

 

http://www.igroceryads.com/dollar-general-circular/

 

But, I patronize it regularly---- while prices are a slight step above my area's deepest discount supermarket, they are significantly  below the top line supermarkets, and quality and convenience are superior to the deep discounter.

But, all this building and expansion based on betting on the end of the middle class would have been formulated during the Obama years and in anticipation of Hillary winning, no? I don't think they could have set it all in motion just since last November 8th-- but, hey I guess since they haven't cancelled it all, they're not figuiring Trump will be a success either, at least.

Edited by Saticon3

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56 minutes ago, Saticon3 said:

Dollar General is not a dollar store, despite the word dollar in it's name

 

http://www.igroceryads.com/dollar-general-circular/

 

But, I patronize it regularly---- while prices are a slight step above my area's deepest discount supermarket, they are significantly  below the top line supermarkets, and quality and convenience are superior to the deep discounter.

But, all this building and expansion based on betting on the end of the middle class would have been formulated during the Obama years and in anticipation of Hillary winning, no? I don't think they could have set it all in motion just since last November 8th-- but, hey I guess since they haven't cancelled it all, they're not figuiring Trump will be a success either, at least.

You're right on all counts unless someone wants to pretend that this all transpired and was conceived during the last 12 months.  Some might well try to make that argument though.  You never know on here. 

Edited by Ode2Joy

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1 hour ago, ncbirdfan said:

That's not quite true. They are both owned by two brothers. One owns Trader Joe's and the other owns Aldi. In Europe they split stores north/south. Here in the US they have two entirely different franchises.

I believe you. But the Albrechts bought Trader Joe's outright in 1979 while Theo Sr. and Karl Sr. were both still alive. So they did own the stores.

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14 hours ago, FatBoy said:

There was a small grocery store in Madonna (highest elevation in Harford County) that closed up and was replaced by a Dollar Store. 

This is a great story, trust me. 

Yep. Family Dollar.  The grocery store just couldn't meet the prices or the selection of the two roughly equidistant Klein's (Jacksonville and Forest Hill). The extra 10+ minutes driving was worth it to most customers.

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Just now, Struds said:

Yep. Family Dollar.  The grocery store just couldn't meet the prices or the selection of the two roughly equidistant Klein's (Jacksonville and Forest Hill). The extra 10+ minutes driving was worth it to most customers.

I don't live very far from there. I used to go to the grocery store once in a while. But I've never been to the Family Dollar, have you? 

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Just now, FatBoy said:

I don't live very far from there. I used to go to the grocery store once in a while. But I've never been to the Family Dollar, have you? 

We're off of Bradenbaugh.

Just a couple of times for the very reason workerbee cited in his post: convenience.  Can't really make many comparisons, but Liter soda bottles and hot dog buns (for example) seemed pretty cheap to me. My wife is satisfied with quick shopping there, so I guess that means I endorse it too. :lol:

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Just now, Struds said:

We're off of Bradenbaugh.

Just a couple of times for the very reason workerbee cited in his post: convenience.  Can't really make many comparisons, but Liter soda bottles and hot dog buns (for example) seemed pretty cheap to me. My wife is satisfied with quick shopping there, so I guess that means I endorse it too. :lol:

So it's a food market? Do they have dairy and meats?

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1 minute ago, FatBoy said:

So it's a food market? Do they have dairy and meats?

The one in biking (pedal) distance from me here in NC has dairy but no meats.  Beer, wine, milk and ice cream (not necessarily in that order) are not cheaper than a Food Lion that is 3 miles farther away.

 

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1 hour ago, Saticon3 said:

Dollar General is not a dollar store, despite the word dollar in it's name

 

http://www.igroceryads.com/dollar-general-circular/

 

But, I patronize it regularly---- while prices are a slight step above my area's deepest discount supermarket, they are significantly  below the top line supermarkets, and quality and convenience are superior to the deep discounter.

But, all this building and expansion based on betting on the end of the middle class would have been formulated during the Obama years and in anticipation of Hillary winning, no? I don't think they could have set it all in motion just since last November 8th-- but, hey I guess since they haven't cancelled it all, they're not figuiring Trump will be a success either, at least.

:lol:

No one else mentioned Trump.

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3 minutes ago, ivanbalt said:

:lol:

No one else mentioned Trump.

He can’t write a post without mentioning his lord and master:lol: 

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Even Whole Foods, aka, "Whole Paycheck," is getting in on the discount trend:

This Whole Foods won’t consume your whole paycheck. New York City’s first Whole Foods Market 365 — a cheaper offshoot of the upscale supermarket chain — is set to open in Fort Greene, Brooklyn, on Jan. 31, the company said this week. The 40,000-square-foot store on the ground and basement floors of a new high-rise at 292 Ashland Pl. plants a flag for the brand just blocks away from the Trader Joe’s at the City Point retail complex, which dropped anchor in June. Both the Whole Foods Market 365 and Trader Joe’s grocery chains are targeting the budget-conscious foodie: In a news release announcing the opening date for 365’s first location on the East Coast, president Jeff Turnas stressed it would “provide a fantastic combination of convenience, quality and value to families, students and commuters alike.”

 

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4 minutes ago, kandace said:

Even Whole Foods, aka, "Whole Paycheck," is getting in on the discount trend:

This Whole Foods won’t consume your whole paycheck. New York City’s first Whole Foods Market 365 — a cheaper offshoot of the upscale supermarket chain — is set to open in Fort Greene, Brooklyn, on Jan. 31, the company said this week. The 40,000-square-foot store on the ground and basement floors of a new high-rise at 292 Ashland Pl. plants a flag for the brand just blocks away from the Trader Joe’s at the City Point retail complex, which dropped anchor in June. Both the Whole Foods Market 365 and Trader Joe’s grocery chains are targeting the budget-conscious foodie: In a news release announcing the opening date for 365’s first location on the East Coast, president Jeff Turnas stressed it would “provide a fantastic combination of convenience, quality and value to families, students and commuters alike.”

No mention of Amazon in that article. I saw a couple articles claiming Whole Foods' prices have gone up slightly since the take over. 

 

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12 minutes ago, ivanbalt said:

:lol:

No one else mentioned Trump.

Come on... Teach is the OP. LOL. 

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11 minutes ago, ivanbalt said:

:lol:

No one else mentioned Trump.

 

6 minutes ago, bmore_ken said:

He can’t write a post without mentioning his lord and master:lol: 

He managed to get an Obama and a Hillary in there too! I wonder if they shop at Family Dollar? :huh:

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