The closure of nearly 600 Family Dollar locations and all 371 99 Cents Only stores has sparked a debate on whether dollar discount stores are a benefit or hindrance to local economies. While some experts believe that the closures are a result of economic challenges faced by the stores, others argue that this does not signal the end of the dollar store format.
Kennedy Smith, a senior researcher for the Institute for Local Self-Reliance, expressed that it has been a tough period for dollar stores. However, experts interviewed by USA TODAY believe that the closures do not signify the demise of dollar stores, despite criticism from some quarters.
The growth of dollar stores in recent years has been significant, with companies like Dollar General and Dollar Tree expanding rapidly to meet the demand for low-cost options. However, changing economic conditions, inflation, reduced government benefits, and mismanagement issues have contributed to the closure of several stores.
While Dollar General continues to thrive and plans to open more stores, some communities have been pushing back against the expansion of dollar stores. Critics argue that dollar stores limit access to healthy food options, prompting some cities to block new projects and enact laws to restrict their growth.
Despite the challenges faced by some dollar stores, experts believe that the format is here to stay. They predict that dollar stores will continue to expand, albeit with necessary adjustments to ensure long-term viability. As the debate rages on, communities are exploring ways to create healthier food options and reclaim sales dollars from dollar stores.
