Dollar Stores: Local Business Killer or Convenient Staple?

JEFFERSON CO., Pa. (EYT) – As dollar chains continue to expand their reach, the discussion over whether the stores enhance or undermine communities is ongoing.

Well-known chain retailers like Dollar General and Dollar Tree, which also bought out Family Dollar four years ago, have continued to expand rapidly in recent years, operating a total of over 30,000 stores across the nation.

These stores have become well-known for opening stores in rural and low-income areas.

David Perdue, Dollar General’s former CEO in the mid-2000s, told The Wall Street Journal that the business’s strategy was to go where Walmart wasn’t going, from suburban areas to rural ones.

This strategy has led to major growth in recent years, with the chain opening 900 or more stores in 2018 and 2019.

While the chains argue they benefit local communities by offering convenience and low prices, opponents say they discourage supermarkets from opening and threaten existing small businesses.

In the local community, opinions on the Dollar General chain and similar stores seem to be mostly positive.

“I think dollar stores, especially the Dollar General, is great for any area. One of many examples is it is close and convenient for almost anything,” Melinda Reed stated.

Mary Martin noted, “Small communities are so blessed to have them. Big Run, Reynoldsville, Sykesville. The elderly can get everything but fruit at these local stores.”

Jan Gabler added that she “love(s) Dollar General. Brookville doesn’t have a Walmart (thank goodness) and Giant Eagle is entirely too expensive, and they don’t carry much.”

However, some locals have issues with the chains.

“Some places are well put, others are on overkill locations,” Patricia Newcome noted.

Debbie Goldinger stated that she thinks “they are overpriced.”

Jamie Lefever, Executive Director for the Jefferson County Development Council, said their office hasn’t had any complaints about Dollar General or any of the similar chains in the region.

“I don’t really have opinion either way. I think it aims to serve a certain clientele, but everyone generally goes there,” Lefever said.

“I really haven’t heard or seen anyone in this area complaining about them coming into small towns, and I’m not aware of anyone coming to our department to complain or offer any opinion about it, and I know we have them here in Jefferson County. They’re everywhere,” Lefever added.

While the chains have a lot of support in our local area, in other parts of the nation, those who stand opposed to the retailers’ business models have started fighting back.

City councils in Birmingham, Alabama; Oklahoma City, Oklahoma; Tulsa, Oklahoma; and Mesquite, Texas, have all passed legislation limiting the opening of new stores.

ExploreJeffersonPA.com reached out to the Dollar General Corporation; however, representatives of the company did not immediately respond to requests for comment.


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