The True Price of the Dollar Store
In 2016, I was living in a place where the arrival of a Dollar General store was met with resistance and protests. At the time, I couldn’t quite understand the uproar. After all, here was a store that offered affordable items, promising jobs for a community struggling with employment. The idea of accessible goods and potential job opportunities seemed like a positive development. Why were people so upset?
Fast forward to 2024, and the scene repeats itself, albeit with a different store. A local party shop closed down, and news spread that a Five Below store would be taking its place. Once again, there was discontent among the residents. This time, however, I found myself looking at the situation with a different lens — a lens colored by experience, awareness, and a deeper understanding of the impact of discount stores on communities.
Five Below Inc., Dollar General, 99 Cent stores , almost all owned by the same parent company, market themselves as providers of affordable goods. Their shelves are filled with products priced at $5 or less, appealing to those on tight budgets. At first glance, it seems like a win-win situation. But a closer look reveals a more complex reality.
One of the key issues with these discount stores is the quality and quantity of the products they offer. Take, for instance, the simple bar of soap. At a dollar store, you might find a 2-pack for $2, while at a larger retailer like Target, an 8-pack the same brand could be priced at $4. The seeming savings at the discount store can quickly diminish when you realize you’re getting less for your money, both in terms of product size and overall value. They prey on people who can not buy in bulk, or spend a few dollars more on an item that will last, so they are in a cycle of buying the same cheap product over and over again because it is what they have at the time.
Additionally, these stores often operate with minimal staffing, leaving employees overworked and underpaid. Stores will be staffed by just one person, so the doors can stay open, while a salaried manager who does not earn overtime picks up all the slack. The business model of these stores relies heavily on keeping labor costs down, often to the detriment of the employees.
A recent post by a content creator, shared that “Five Below told my fiance that she was getting promoted into a new role. They told her she was a valued member of the team and wanted to reward her. Guess what? The salary they offered barely covers inflation that has occured since she got her current role. She is literally being asked to do more work for the same pay. And to cover the additional comuting expenses on her own. Oh, and by the way, they made OVER 300 MILLION IN PURE PROFIT last year.”
But perhaps the most insidious aspect of these discount chains is their strategy of targeting communities with limited access to transportation. By setting up shop in neighborhoods where residents rely on walking or public transit, they create a captive market. This not only limits consumer choice but also undercuts local businesses that may offer better quality products at competitive prices.
In the end, the arrival of a Dollar General, Five Below, or 99 Cent store might seem like a boon to a struggling community. However, the long-term consequences can be detrimental. These stores perpetuate a cycle of poverty by offering subpar products at seemingly low prices, while simultaneously exploiting workers and undercutting local businesses who can not compete with their pricing.
Several large cities have had to place moratoriums on discount stores, by making rules that they must be separated by at least two miles from an existing dollar store. Stores must also offer fresh produce, meat and dairy products amounting to at least 10 percent of the floor area.
As I reflect on the protests and resistance to the Dollar General back in 2016, I now understand the deeper implications. It’s not just about having a store nearby that sells cheap goods — it’s about the impact on the fabric of a community, the livelihoods of its residents, and the choices available to them. It’s about recognizing that true economic growth and sustainability come from supporting businesses that value both their employees and their customers.
So the next time a discount store announces its arrival in a neighborhood, perhaps it’s worth pausing to consider the true cost of those “$5 or less” deals. The price may be far higher than we realize.
