Death of the "Dollar Stores"?

Question

I have been shopping at Dollar Tree for years, relying on them for school snacks and lunch stuff. Lately everytime I go into either one of the two we have locally, there is hardly anything on the shelves. I asked one manager what was happening and he said it was a combination of more people shopping there AND that they are going to stop carrying certain food items because they can no longer make any money selling them for a dollar. So with the rising costs of food and transporation, do you think that the "dollar store" industry will survive?

Answer 1

They will eventualy have to adjust their pricing structure.

That may not be a bad thing, more selection at low prices.

Answer 2

I would have to say yes. I'd say dollar stores have generally been used by people of lower incomes who simply can't afford to pay full price for things, as well as people who fully can afford full price, but simply enjoy getting a bargain, and the thrill of an entire store of cheap, dollar-priced, usable things. I'm no business expert, but I imagine that with the economy being what it's become, many more people are relying on places like dollar stores to do their regular shopping for whatever they can possibly get there. Since there are many brands produced for the sole purpose of resale at a cheap price (whether they are less effective or just cost less to produce) I'd say we'll probably just have to hang out a little while until they start making cheaper things again. It's not gonna happen tomorrow, but I really don't think dollar stores are gonna go under. In fact, they may simply become more commonplace, and business will have to expand and carry more variety to accomodate the growing customer base.