The economic slowdown that’s being experienced worldwide has definitely affected American consumers. People aren’t interested in buying expensive cars and television sets anymore. With the cost of daily commodities, education and basic needs on the rise, even the high middle class populations are flocking to dollar shops for their needs.
We’re no longer talking about toys and other trinkets, here. We’re talking about fresh produce, packed food and clothing. Boutiques and shopping malls may be closing down, but dollar shops are experiencing a wonderful revival, thanks to the near-meltdown in the US. The 35% increase in foreclosures in states such as California isn’t helping the shopping malls, either. People need cheap goods, and people need them now.
High-income individuals become dollar-shoppers
According to a recent research by Nielsen Co., a long-established statistical company, middle-income earners and high-income earners are now patronizing stores like Dollar General for their every need. As we’ve mentioned earlier, people are after clothes as much as cheap but effective household cleaners.
In addition, they want it from a store that offers these products for $1 or less. Just how much time are the high-income people spending on dollar stores? According to Nielsen Co., the recent figure is 18% more, compared to the statistics in the year 2008.
What to buy, and for how much
There should be no mistake here; only 23% of the goods sold in dollar stores actually cost a dollar or less. Still, you’re dealing with an assortment of goods with lower prices than those offered in larger store chains or supermarkets. If you don’t have the budget for large bags of goods from Costco, dollar shops are a good choice. According to the statistics from Nielson Co., about 45% of those who patronize largely the dollar stores are individuals who earn less than $30,000 per year.
Most people who go to dollar stores find good deals with paper products and household cleaners. As for food, you can buy sweets and some small pastries from dollar stores, as well. If you were willing to travel to a small shop for your needs, you would be spending far less on the same products. This is in contrast with other chains like ShopRite.
Safety issues
We’re not going to be completely positive about this, because one irrevocable fact remains; many goods in dollar shops remain substandard. Many of the electrical merchandise such as bulbs and extension cords have been manufactured largely in places like Mainland China.
Because of this, these stores can’t help but sell goods that have not met the quality control standards of the United States. And here’s something that’s more disturbing. The issue with lead-laden trinkets and playthings for children is still very much alive, because regulation in China is still a problem.
If you have small children who are prone to chewing their toys, don’t risk it. Stick to toys manufactured in places like Sri Lanka, Thailand and Taiwan to be safe. As for electrical goods, don’t risk it, as well. It’s better to spend $20 on a quality electrical cord than risk burning down your house for a $3 electrical cord.
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