7 Reasons
Dollar Stores
Can Sell Food For Really Low Prices
1.
Dollar stores cut overheads by smaller spaces, avoiding
fresh produce
and bakery sections.
2. Creative
pricing
may lead to higher costs per weight for some items at dollar stores.
3. Dollar stores, particularly Dollar General, serve underserved neighborhoods, becoming a "least bad option" in
food deserts
.
4. Lower employee wages contribute to the
discount store
model's lower overhead expenses.
5. Despite the
$1 price tag
, dollar stores may carry higher-priced items, boosting profit margins.
6. Dollar stores have special wholesale arrangements with big brands, offering name-brand products at lower prices.
7. Dollar stores, including Dollar General, offer private label and store brands, reducing costs and maximizing profit.