Discount stores perpetuate poverty, study says

A quick Google search found 18 dollar stores in Montgomery County alone. (Image courtesy wikipedia.org)
While some of us get excited about the prospect of snatching up a small item for just a dollar, the proliferation of ‘dollar stores’ have an underlying effect on the health and welfare of some segments of society.Here’s the scenario. A company moves into an economically depressed area and opens up a discount, or dollar store. With few other resources available, and few options for healthy affordable food items, the dollar store prospers, although offering less than healthy options, writes Tanvi Misra for citylab.com. 

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A quick Google search found 18 dollar stores in Montgomery County alone.

A recent research brief by the Institute of Local Self Reliance (ILSR), a nonprofit supporting local economies, explores this fairly recent proliferation of discount stores in low income or impoverished areas and the negative effect on local communities.

Dollar stores have exploded in growth in the past few year, when in 2015 Dollar Tree bought Family Dollar in 2015. Combine their numbers with Dollar General and we’re talking about approximately 30,000 discount stores across the country, making them larger than Walmart and McDonald’s combined.

“While dollar stores sometimes fill a need in cash-strapped communities, growing evidence suggests these stores are not merely a byproduct of economic distress,” the authors of the brief write. “They’re a cause of it.”To read the complete story click here. 

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