Dollar stores and others like it can be great places to pick up home items on the cheap but have you ever wondered how dollar stores can keep their prices so low?
What Dollar Stores Stock
It probably doesn’t come as a surprise that dollar stores typically stock surplus items, items that are damaged or weren’t as popular as expected in other retail outlets. Other items just come in smaller sizes and the stores keep a small staff to save on staffing costs.
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Plus, dollar stores rely on people making impulse buys. Since everything is a dollar, it’s easier for consumers to pick up additional items.
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The Rise of the Dollar Store
Dollar stores have expanded dramatically since the Great Recession to where there are more than 30,000 in the U.S., which is more than Walmart, Walgreens, CVS, Costco, Kroger and The Home Depot combined. Part of the secret to the rise of dollar stores is they have smaller square footages than other stores, which helps save on overhead.
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Dollar stores buy a lot of inventory at a time so they can sell things cheaply. Much of the inventory dollar stores purchase costs so little because they aren’t in demand or are discontinued. But it’s buyer beware with items like toys, which can break easily at times.
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