The Dollar Difference: Why Rural Poverty Benefits Dollar Stores More Than Urban
Jul 10, 2024
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In this podcast, hosts Abby Newsham and Chuck Marohn discuss the success of Dollar General in rural areas compared to Family Dollar in urban areas. They explore the impact of dollar stores on impoverished neighborhoods and the dynamics of the free market in small towns. The conversation also delves into polyvagal theory, pain management, and sensory responses, offering unique insights and personal experiences.
Dollar General's focus on rural areas contrasts with Family Dollar's urban presence, impacting their expansion and closure strategies.
Dollar stores in rural areas operate on an extractive model, affecting community wealth and economic competitiveness.
Urban e-commerce trends and challenges like rising costs and crime influence the struggle of dollar stores in urban markets.
Deep dives
Dollar Store Expansion Trends: Rural vs. Urban Locations
Dollar General focuses on rural areas while Family Dollar caters to urban neighborhoods, with Dollar General expanding significantly around the country compared to Family Dollar, leading to a real estate altercation outlined in The Wall Street Journal article 'The Dollar Store Showdown Comes Down to Real Estate.'
Extractive Business Models of Dollar Stores
Dollar stores like Dollar General operate on an extractive business model, prioritizing low-cost goods and minimal wages. This extractive nature is evident in their placement in rural areas where costs are lower, potentially impacting community wealth and economic competitiveness.
Impact of E-Commerce on Urban vs. Rural Retail
E-commerce preferences differ between urban and rural areas, with urban dwellers leaning towards online shopping, influencing the struggle of dollar stores in urban settings. Factors such as rising costs and crime could also contribute to the challenges faced by dollar stores in urban markets.
City Strategies to Promote Local Entrepreneurism
Addressing the prevalence of dollar stores involves fostering local entrepreneurism and reinforcing a culture of supportive local businesses. Encouraging diversified retail offerings and avoiding subsidies to distorting business models are essential steps in promoting sustainable economic growth.
Understanding Sensory Responses and Well Being
Exploration of sensory responses and their impact on well-being, such as managing pain perception and adapting to discomfort, reveals potential strategies for enhancing resilience and mental wellness through practices like cold water plunges and mindfulness.
Promoting Local Economies over Extractive Models
Challenges posed by extractive business practices like those of dollar stores underscore the importance of investing in local economies and supporting community-driven initiatives to counteract detrimental impacts. Prioritizing local prosperity and entrepreneurship fosters sustainable growth and resilient communities.
This week on Upzoned, hosts Abby Newsham and Chuck Marohn discuss a recent article in the Wall Street Journal, “The Dollar-Store Showdown Comes Down to Real Estate.” It highlights the differences between Dollar General, which has stores located in mostly rural areas and is expanding its reach, and Family Dollar, which has stores located in mostly urban areas and is closing hundreds of stores.
Why is one of these companies succeeding while the other struggles? And what do dollar stores help or harm poor neighborhoods? Listen to this week’s episode to find out.