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How dollar stores really make their money? one essay 15 paragraphs.

How dollar stores really make their money? one essay 15 paragraphs.


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Expert Solution

Dollar store formerly known as only $ 1 .00 , is an American chain of discount variety stores that sells items for $1 or less . Headquartered in Chesapeake, Virginia , it is a Fortune 500 company and operates , 15, 115 stores throughout the 48 contiguous U.S. states and Canada .


Department found in dollar store include health and beauty, food and snacks , party , seasonal decor , housewares, glassware , dinnerware , household cleaning supplies , candy, toys , gift bags and wrap .

It is classified as an extreme discount store . It claims to be able to achieve this because of their buyers "work extremely hard to find the best bargains out there ",and it has great control over the tremendous buying power at the dollar price - point .

Dollar store sell over runs , discounted products , previous versions of a product , or opd stock that does not sell well . They buy all this stuff at deep discounts , which allows them to sell them cheaply . For "regular " items , they are often knock- offs made of cheaper materials.

Dollar stores are not just convenient because their items are cheaper , but also because there seems to be one on every corner ( especially in the lower - income parts of town) making them perfect for a quick fill in trip between weekly grocery stores . These stores are also typically smaller than the ones Ina big chain like Walmart. The fact that most people are on to this , this means dollar stores are always making money .

Dollar store are mostly located in areas where people with a lower income levers reside , and /or in which big box stores are not easily accessible . 75% dollar stores are located in towns that have less than 20,000 people. The chain targets sparsely populated rural areas where it can be the only game in town when it comes to buying food or other supplies .
Dollar stores present themselves as a cheaper and more convenient option.


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