These are tough times for two big US dollar store chains. In the past month, Family Dollar said it will close nearly 1,000 stores and 99 Cents Only said it will go out of business.
Both companies said inflation and shoplifting have contributed to their troubles. While inflation has pressured the companies’ low-income customer base and shoplifting has squeezed their profits, those factors alone can’t explain their difficulties.
Years of strategic mistakes and underinvestment have plagued Family Dollar and 99 Cents Only, retail analysts say. Both brands were acquired by other companies and faltered under their new owners.
It’s true that items can cost more pound for pound, but there’s still a place in the market for them. I see a lot of elderly people shopping at the one near me. That demographic may eat very little and live in little spaces where it is hard to store bulk goods. They may have mobility issues and find it difficult to travel to Costco and carry/manage those large bulk items. Maybe getting rice and dry goods there is economical but produce, meats and breads may go bad before they are consumed in single person households.
All of that takes up less space than a mini fridge but I will give you that it is a bit unweildy to get home. You could get a months worth of food on two or three bus rides. All of that stuff is stable for at least a month. I did that for 2 years while trying to survive on minimum wage.