The Dollar General Effect

[Tommy Tainant]

Where even Walmart won't go: how Dollar General took over rural America

When Dollar General came to Haven, Kansas, it arrived making demands. The fastest-growing retailer in America wanted the taxpayers of the small, struggling Kansas town to pick up part of the tab for building one of its squat, barebones stores that more often resemble a warehouse than a neighbourhood shop.

Dollar General thought Haven’s council should give the company a $72,000 break on its utility bills, equivalent to the cost of running the town’s library and swimming pool for a year, on the promise of jobs and tax revenues. The council blanched but ended up offering half of that amount to bring the low-price outlet to a town that already had a grocery store.

“Dollar General are a force. It’s hard to stop a train,” said Mike Alfers, Haven’s then mayor who backed the move. “Obviously there’s been collateral damage. We didn’t expect it. I’m torn but, net-net, I still think it was a good move to bring them in.”

These towns sound incredibly bleak. I am struggling to find a UK equivalent.

Is lack of access to fresh food a new indicator of poverty ?

 

[Penelope]

I have a Dollar General and Family Dollar close by so I go there when I need something , Family Dollar has a refrigerator dept and Dollar General does not (by me anyway). Dollar General is better organized, but now our Family Dollar is getting there.

They do not have fresh food, like produce. Also one needs to check the expiration dates.

In the US all businesses are socialized by tax abatements and or utilities.

 

[there4eyeM]

Perhaps they should change the name to "General Dollar", as money not only talks in America, it commands.

 

[Tommy Tainant]

I have a Dollar General and Family Dollar close by so I go there when I need something , Family Dollar has a refrigerator dept and Dollar General does not (by me anyway). Dollar General is better organized, but now our Family Dollar is getting there.

They do not have fresh food, like produce. Also one needs to check the expiration dates.

In the US all businesses are socialized by tax abatements and or utilities.

They seem to be very socialist in nature.

 

[Penelope]

I have a Dollar General and Family Dollar close by so I go there when I need something , Family Dollar has a refrigerator dept and Dollar General does not (by me anyway). Dollar General is better organized, but now our Family Dollar is getting there.

They do not have fresh food, like produce. Also one needs to check the expiration dates.

In the US all businesses are socialized by tax abatements and or utilities.

They seem to be very socialist in nature.

Yes they do anything for businesses and corps, but not for the average joe, socialism is a nasty word for the average joe.

 

[Tommy Tainant]

I have a Dollar General and Family Dollar close by so I go there when I need something , Family Dollar has a refrigerator dept and Dollar General does not (by me anyway). Dollar General is better organized, but now our Family Dollar is getting there.

They do not have fresh food, like produce. Also one needs to check the expiration dates.

In the US all businesses are socialized by tax abatements and or utilities.

They seem to be very socialist in nature.

Yes they do anything for businesses and corps, but not for the average joe, socialism is a nasty word for the average joe.

It seems un american to subsidise firms with a failing business model . Especially as it gives them an unfair advantage over smaller competitors.
Or have I missed the point ?

 

[pinqy]

I have a Dollar General and Family Dollar close by so I go there when I need something , Family Dollar has a refrigerator dept and Dollar General does not (by me anyway). Dollar General is better organized, but now our Family Dollar is getting there.

They do not have fresh food, like produce. Also one needs to check the expiration dates.

In the US all businesses are socialized by tax abatements and or utilities.

They seem to be very socialist in nature.

Yes they do anything for businesses and corps, but not for the average joe, socialism is a nasty word for the average joe.

It seems un american to subsidise firms with a failing business model . Especially as it gives them an unfair advantage over smaller competitors.
Or have I missed the point ?

Where did you get the idea of failing business model?

 

[Tommy Tainant]

I have a Dollar General and Family Dollar close by so I go there when I need something , Family Dollar has a refrigerator dept and Dollar General does not (by me anyway). Dollar General is better organized, but now our Family Dollar is getting there.

They do not have fresh food, like produce. Also one needs to check the expiration dates.

In the US all businesses are socialized by tax abatements and or utilities.

They seem to be very socialist in nature.

Yes they do anything for businesses and corps, but not for the average joe, socialism is a nasty word for the average joe.

It seems un american to subsidise firms with a failing business model . Especially as it gives them an unfair advantage over smaller competitors.
Or have I missed the point ?

Where did you get the idea of failing business model?

I am basing it on the fact that they required all of that help in order to set up. The chap that they shut down never asked for a penny.

 

[Penelope]

Family Dollar and Dollar General are both busy. I am sure they get some incentive when they opened. Many companies buy up the tiny fish. There are corporate raiders.

 

[BlueGin]

Family Dollar also owns Dollar Tree and Dollar General is now opening grocery stores under the Dollar General name. Neither have a bad business model.

 

[ABikerSailor]

Well, taxpayers have been footing the bill for new football stadiums, and the NFL makes a hell of a lot of money, so why should the taxpayer pay for them?

Now? It looks like the rest of corporate America is finding loopholes to get the taxpayer to fund the building of their businesses.

 

[Penelope]

Well, taxpayers have been footing the bill for new football stadiums, and the NFL makes a hell of a lot of money, so why should the taxpayer pay for them?

Now? It looks like the rest of corporate America is finding loopholes to get the taxpayer to fund the building of their businesses.

They have been doing it for a long time. The states offer incentives for companies to move there. Like with Foxconn, they are tax free for years and they do not have to follow the epa laws. WI is also lower wage state, now if a Democrat gets to be governor they may not agree with the no epa stuff. Its like a war between the states to what they offer, kind of like trade wars.

The pollution of air will be felt in Mi and also they plan on taking millions of water a day from Lake MI. We are not happy with the pollution they will cause.

 

[Tommy Tainant]

Well, taxpayers have been footing the bill for new football stadiums, and the NFL makes a hell of a lot of money, so why should the taxpayer pay for them?

Now? It looks like the rest of corporate America is finding loopholes to get the taxpayer to fund the building of their businesses.

Does the city get a return on its funding or is it just a notional "benefit" to the city ?

 

[pinqy]

I have a Dollar General and Family Dollar close by so I go there when I need something , Family Dollar has a refrigerator dept and Dollar General does not (by me anyway). Dollar General is better organized, but now our Family Dollar is getting there.

They do not have fresh food, like produce. Also one needs to check the expiration dates.

In the US all businesses are socialized by tax abatements and or utilities.

They seem to be very socialist in nature.

Yes they do anything for businesses and corps, but not for the average joe, socialism is a nasty word for the average joe.

It seems un american to subsidise firms with a failing business model . Especially as it gives them an unfair advantage over smaller competitors.
Or have I missed the point ?

Where did you get the idea of failing business model?

I am basing it on the fact that they required all of that help in order to set up. The chap that they shut down never asked for a penny.

They asked for the help because they knew the town needed them more than they needed the town. The town might not be profitable enough to set up without the help or they’re just looking for a cheap place to maximize profits? Why pay more if you don’t have to? Perhaps another town would be more profitable without the assistance, but this one is more profitable due to lower costs.

Additionally, the town couldn’t afford to make the same deal with s rival store, so by being there first, with lower fixed costs, they’ve given themselves enough of an advantage that no competitor would set up there.

Trying to get a cheap deal doesn’t mean bad business model.

 

[Tommy Tainant]

Family Dollar also owns Dollar Tree and Dollar General is now opening grocery stores under the Dollar General name. Neither have a bad business model.

Why do they need welfare then ?

 

[TomParks]

These stores are great for rural areas and the prices are equal to or better than Walmart.

 

[Tommy Tainant]

They seem to be very socialist in nature.

Yes they do anything for businesses and corps, but not for the average joe, socialism is a nasty word for the average joe.

It seems un american to subsidise firms with a failing business model . Especially as it gives them an unfair advantage over smaller competitors.
Or have I missed the point ?

Where did you get the idea of failing business model?

I am basing it on the fact that they required all of that help in order to set up. The chap that they shut down never asked for a penny.

They asked for the help because they knew the town needed them more than they needed the town. The town might not be profitable enough to set up without the help or they’re just looking for a cheap place to maximize profits? Why pay more if you don’t have to? Perhaps another town would be more profitable without the assistance, but this one is more profitable due to lower costs.

Additionally, the town couldn’t afford to make the same deal with s rival store, so by being there first, with lower fixed costs, they’ve given themselves enough of an advantage that no competitor would set up there.

Trying to get a cheap deal doesn’t mean bad business model.

But there was already a store there.
You cant blame them for trying I suppose but the politicians should really give their head a wobble. And I say that as a moderate socialist.

 

[Tilly]

Tammy, you are Welsh and you live in Wales.
Why do care about grocery stores in rural America?