Rural towns and poor urban neighborhoods are being devoured by dollar stores
Across America, rural communities and big cities alike are passing ordinances limiting the expansion of dollar stores, which use a mix of illegal predatory tactics, labor abuse, and monopoly consolidation to destroy the few community grocery stores that survived the Walmart plague and turn poor places into food deserts.
If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
https://pluralistic.net/2023/03/27/walmarts-jackals/#cheater-sizes
"The Dollar Store Invasion," is a new Institute For Local Self Reliance (ILSR) report by Stacy Mitchell, Kennedy Smith and Susan Holmberg. It paints a detailed, infuriating portrait of the dollar store playback, and sets out a roadmap of tactics that work and have been proven in dozens of places, rural and urban:
https://cdn.ilsr.org/wp-content/uploads/2023/01/ILSR-Report-The-Dollar-Store-Invasion-2023.pdf
The impact of dollar stores is plainly stated in the introduction: "dollar stores drive grocery stores and other retailers out of business, leave more people without access to fresh food, extract wealth from local economies, sow crime and violence, and further erode the prospects of the communities they target."
This new report builds on ILSR's longstanding and excellent case-studies, augmenting them with the work of academic geographers who are just starting to literally map out the dollar store playbook, identifying the way that a dollar stores will target, say, the last grocery store in a Black neighborhood and literally surround it, like hyenas cornering weakened prey. This tactic is repeated whenever a new grocer opens in the neighborhood: dollar stores "carpet bomb" the surrounding blocks, ensuring that the new store closes as quickly as it opens.
One important observation is the relationship between these precarious neighborhood grocers and Walmart and its other big-box competitors. Deregulation allowed Walmart to ring cities with giant stores that relied on "predatory buying" (wholesale terms that allowed Walmart to sell goods more cheaply than its competitors bought them, and also rendered its suppliers brittle and sickly, and forced down the wages of those suppliers' workers). This was the high cost of low prices: neighborhoods lost their local grocers, and community dollars ceased to circulate in the community, flowing to Walmart and its billionaire owners, who spent it on union busting and political campaigns for far-right causes, including the defunding of public schools.
This is the landscape where the dollar stores took root: a nation already sickened by an apex predator, which left a productive niche for jackals to pick off the weakened survivors. Wall Street loved the look of this: the Private equity giant KKR took over Dollar General in 2007 and went on a acquisition and expansion bonanza. Even after KKR formally divested itself of Dollar General, the company's hit-man Michael M Calbert stayed on the board, rising to chairman.
The dollar store market is a duopoly. Dollar General's rival is Dollar Tree, another gelatinous cube of a company that grew by absorbing many of its competitors, using Wall Street's money. These acquisitions are now notorious for the weaknesses they exposed in antitrust practice. For example, when Dollar Tree bought Family Dollar, growing to 14,000 stores, the FTC waved the merger through on condition that the new business sell off 330 of them. These ineffectual and pointless merger conditions are emblematic of the inadequacy of antitrust as it was practiced from the Reagan administration until the sea-change under Biden, and Dollar Tree/Family Dollar is the poster child for more muscular enforcement.
The duopoly has only grown since then. Today, Dollar General and Dollar Tree have more than 34,000 US outlets - more than Starbucks, #Walmart, McDonalds and Target - combined.
Destroying a community's grocery store rips out its heart. Neighborhoods without decent access to groceries impose a tax on their already-struggling residents, forcing them to spend hours traveling to more affluent places, or living off the highly processed, deceptively priced (more on this later) goods for sale on the dollar store shelves.
Take Cleveland, once served by a small family chain called Dave's Market that had served its communities since the 1920s. Dave's store in the Collinwood neighborhood was targeted by Family Dollar and Dollar General, which opened seven stores within two miles of the Dave's outlet. The dollar stores targeted the only profitable part of Dave's business - the packaged goods (fresh produce is a money-loser, subsidized by packaged good).
The dollar stores used a mix of predatory buying and "cheater sizes" (packaged goods that are 10-20% smaller than those sold in regular outlets, which are not available to other retailers) to sell goods at prices that Dave's couldn't match, driving Dave's out of business.
Typical dollar stores stock no fresh produce or meat. If your only grocer is a dollar store, your only groceries are highly processed, packaged foods, often sold in deceptive single-serving sizes that actually cost more per ounce than the products that the defunct neighborhood grocer once sold.
Dollar stores don't just target existing food deserts - they create them. Dollar stores preferentially target Black and brown neighborhoods with just a single grocer and then they use predatory pricing (subsidizing the cost of goods and selling them at a loss) and predatory buying to force that grocery store under and tip the neighborhood into food desert status.
Dollar stores don't just target Black and brown urban centers; they also go after rural communities. The commonality here is that both places are likely to be served by independent grocers, not chains, and these indies can't afford a pricing war with the Wall Street-backed dollar store duopoly.
As mentioned, the "predatory buying" of dollar stores is illegal - it was outlawed in 1936 under the Robinson-Patman Act, which required wholesalers to offer goods to all merchants on the same terms. 40 years ago, we stopped enforcing those laws, leading the rise and rise of big box stores and the destruction of the American Main Street.
The lawmakers who passed Robinson-Patman knew what they were doing. They were aware of what contemporary economists call "the waterbed effect," where wholesalers cover the losses from their massive discounts to major retailers by hiking prices on smaller stores, making them even less competitive and driving more market consolidation.
When dollar stores invade your town or neighborhood, they don't just destroy the food choices, they also come for neighborhood jobs. Where a community grocer typically employs 12 or more people, Dollar General employs about 8 per store. Those workers are paid less, too: 92% of Dollar General's workers earn less than $15/h, making Dollar General the worst employer of the 66 large service-sector firms.
Dollar stores also lean heavily into the tactic of turning nearly every role at its store into a "management" job, because managers aren't entitled to overtime pay. That's how you can be the "manger" of a dollar store and take home $40,000 a year while working more than 40 hours every single week.
Understaffing stores turns them into crime magnets. Shootings at dollar stores are routine. Between 2014-21, 485 people were shot at dollar stores - 156 of them died. Understaffed warehouses are vermin magnets. In the Eastern District of Arkansas, Family Dollar was subpoenaed after a rat infestation at its distribution centers that contaminated the food, medicines and cosmetics at 400 stores.
The ILSR doesn't just document the collapse of American communities - it fights back, so this report ends with a lengthy section on proven tactics and future directions for repelling the dollar store invasion. Since 2019, 75 communities have blocked proposals for new dollar stores - more than 50 of those cases happened in 2021/22.
54 towns, from Birmingham, AB to Fort Worth, TX to Kansas City, KS, have passed laws to "sharply restrict new dollar stores, typically by barring them from opening within one to two miles of an existing dollar store."
To build on this momentum, the authors call for a "reinvigoration of antitrust laws," especially the Robinson-Patman Act. Banning predatory buying would go far to creating a level playing field for independent grocers hoping to fight off a dollar store infestation.
Further, we need the FTC and Department of Justice Antitrust Divition to block mergers between dollar-store chains and unwind the anticompetitve mergers that were negligently waved through under previous administrations (thankfully, top enforcers like Jonathan Kantor and Lina Khan are on top of this!).
We need to free up capital for community banks that will back community grocers. That means rolling back the bank deregulation of the 1980s/90s that allowed for bank consolidation and preferential treatment for large corporations, while reducing lending to small businesses and destroying regional banks. Congress should cap the market share any bank can hold, break up the biggest banks, and require banks to preference loans for community businesses. We also need to end private equity and Wall Street's rollup bonanza.
All of that sounds like a tall order - and it is! But the good news is that it's not just groceries at stake here. Every kind of community business, from pet groomers to hairdressers to funeral homes, falls into the antitrust "Twilight Zone," of acquisitions under $101m. With 60% of Boomer-owned businesses expected to sell in the coming decade, 2.9m businesses employing 32m American workers are slated to be gobbled up by private equity:
https://pluralistic.net/2022/12/16/schumpeterian-terrorism/#deliberately-broken
Whether you're burying a loved one, getting dialysis, getting your cat fixed or having your dog's nails trimmed, you are already likely to be patronizing a business that has been captured by private equity, where the service is worse, the prices are higher and the workers earn less for harder jobs. Everyone has a stake in financial regulation. We are all in this fight, except for the eminently guillotineable PE barons, and you know, fuck those guys
At the state level, the authors propose new muscular enforcement regimes and new laws to protect small businesses from unfair competition. They also call on states to increase the power of local governments to reject new dollar store applications, amending land use guidelines to require "cultivating net economic growth, ensuring that everyone has access to healthy food, and protecting environmental resources.
If all of this has you as fired up as it got me this morning, check out ILSR's "How to Stop Dollar Stores in Your Community" resources:
http://ilsr.org/dollar-stores
I’m kickstarting the audiobook for my next novel, a post-cyberpunk anti-finance finance thriller about Silicon Valley scams called Red Team Blues. Amazon’s Audible refuses to carry my audiobooks because they’re DRM free, but crowdfunding makes them possible.
Image:
Mike McBey (modified)
https://www.flickr.com/photos/158652122@N02/38893547595/
CC BY 2.0
https://creativecommons.org/licenses/by/2.0/
[Image ID: A ghost town; it is towered over by a haunted castle with a Dollar General sign on it, with the shadow of Count Orlock cast over its tower. One of its turrets is being struck by lightning.]
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places where you shouldn’t be (where you could be anyway)
“This was a mistake.” Carlos says under his breath. “We’re gonna die here, right? This is where it ends.”
“Yeah,” Jay agrees, equally quietly. “Biggest mistake we’ve made in a while. Nice knowing you, but we’re not getting out of this one.”
Their cart squeals as Evie navigates them smoothly around a turn.
It’s fine. They’re all fine and great and surviving, thriving adults.
Who totally know how to do grocery shopping.
“Do we even have money for this?”
Jay shrugs. “Dude. I don’t know. I didn’t even bring a wallet.”
“What’s in your pockets?”
Jay’s wearing a jacket with at least six hidden pockets. It’s one of the most honest, upstanding items of clothing he owns. “Nothing. Literally. It’s like, physically painful.”
“Take some gum or something,” Carlos says, flicking a silver wrapper at Jay’s head. It falls on the floor. It’s a testament to the way that respectable Auradon adults seem to gloss over the VKs when they’re not actively shouting that nobody in the store even blinks an eye at them. “Nobody's gonna care about that. It’ll keep your hands busy if there’s something to fidget with, yeah?”
“I can’t.”
Carlos shoves the gum into his mouth. “Why the fuck not?”
“Dude. We’re being good. I have to keep being good, or we’re gonna get shipped back and the girls would never forgive us. Do you want that on your conscience? Me being shipped back to the isle forever because I couldn’t keep my hands to myself in the fuckin’ grocery store?”
“Nobody’s gonna care.” Carlos points out. He’s wearing a jacket that’s more rips than fabric, and the four of them are the only people in the store not wearing pastels. “The cameras only cover the door and the health food display. Stores like this bake a certain amount of loss into their profit margins. They don’t give a shit if we take some gum.”
Jay shoves his hands in his pockets. There’s tiny little cheese rounds in the side cooler they’re walking past, and they would fit so neatly in his hand.
He could fit like seven of them in his pocket without blinking. “Nope. I’m not doing it.”
“I’ll start moving my shit to your pockets.” Carlos says, chomping his gum so aggressively that one of the adults who’s pushing a cart in the opposite direction almost looks at them. “I’m gonna run out of space.”
Jay twirls a bottle opening keychain around his finger before tossing it back on the shelf. “You wouldn’t.”
“Mine’re gonna be full before we get halfway through. You’ve got a lot more space.”
“Yeah,” Jay says, still casually, slouching so that they’re shoulder to shoulder. “Because I’m not fucking four feet tall, and I’m not wearing skinny jeans.”
“You’re just jealous of my incredible calves.” Carlos says, shoulder-checking him towards the side of the aisle. The subsequent noise is a great cover for the transfer between their pockets, not that they need it. They’re a polished ducking team, and the plastic-wrapped candy bars don’t even crinkle.
Evie’s going to kill them both.
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thinking about john's multitude of short-lived, often quickly-abandoned apartments for some reason, so a couple details:
although you might expect to find a very wizard-y interior to any place he's currently living at — you know, grimoires, skulls, dust, clutter, etc. — his flats actually tend to be fairly spartan in terms of decor; they've even been accused of looking modern, here and there. he just moves too frequently to really settle in & accrue Things, and has so often had to simply up & leave everything he currently owned behind (with very little chance of getting any of it back) that he no longer attaches much meaning to household objects.
besides the consistent presence of at least one bookshelf with at least 12 books on it, and a sad sprig of garden sage that miraculously hasn't died yet, the one exception to his lack of personal touch is his extensive collection of records + tapes, all of which he has repeatedly & methodically tracked down and bought / bid / traded / stolen / threatened for / blackmailed for / simply taken back whenever an enterprising landlord or new tenant left him the opportunity to do so. his record player itself has never needed to be taken back, since it has always mysteriously vanished from whatever flat he's leaving and mysteriously appeared wherever he's staying; it's convenient like that. his 10th anniversary walkman, however, frequently goes missing, only to turn up again later in a place he KNOWS he checked when he's least expecting it.
lack of home decor isn't to say he doesn't own much, mind: the bulk of his personal possessions — assorted occult paraphernalia, blackmail documentation, miscellaneous crap from his mucous membrane days, and anything he is able to take with him from past flats — are usually stored off-site, in a secure location that can't easily be tied back to him. this guy's been accused of being a satanic killer on multiple occasions, he knows better than to keep all the real shit out where anyone can just swan in and see it.
currently, this storage location (which i lovingly call occult shit central) is an abandoned inner london storefront + adjoining flat that was formerly his old friend ray monde's shop and home, called brick-a-brac antiques. it's decidedly cozier than the last place, (in that there are chairs, plural,) and has fewer bear traps laid out in anticipation of unlucky thieves; in fact, if a person were to visit without already knowing where constantine actually lives, it'd be easy to mistake it as his expectedly-wizardy flat. it's not an ideal location for an occult shit central, too close to the heart of the city and too close to people to avoid drumming up suspicion should constantine attempt any sort of ritual inside, but until chas finally quits ducking the paperwork and signs over his storage lot (which he may or may not be dragging his feet on out of pure resentment for having to do it at all) ray's place is the best option there is.
constantine's previous (and future) storage location was a lock-up in streatham that chas had been letting him use (see: all but surrendered to him entirely) since he got out of ravenscar, but after constantine's sister died, john decided he was done with magic and, in a spontaneous fit of rage, burnt the place down with everything but a few necessities still inside. he regretted this later, when he inevitably returned to the occult scene after just over a year away, and spent a lot of time calling in favors / hypnotizing arson inspectors to try and put together an inventory of everything he'd lost.
in the nearly 20 years since the fire, he's managed to replace or find substitutes for about 2/3 of what he had (occult-wise), and gather enough fresh dirt / do enough favors / orchestrate enough compromising situations to accumulate a little over 1/4 of the political / interpersonal power he once maintained. ( the lack of success in the latter being, in part, because people now in power aren't as familiar with his name & reputation as they once were; in part because people just don't believe in magic as much as they used to, or were otherwise bought by hell / heaven / other parties a LONG time ago; and in part because he's come to absolutely fucking despise most politicians / people in power more than he is willing to work with them, or more than he is able to plausibly believe they won't try to drop him at the first opportunity. )
you would be hard-pressed to find a landlady/landlord that speaks kindly of this man. if he wasn't kicked out for suspicious smells / disturbing noises / sudden infestations / suspected satanic activity, then it's likely that he abruptly up and disappeared in the middle of the night, with no warning and no rent. (on a few occasions, this vanishing act also coincided conspicuously with a gruesome death on the premises, sometimes of the landlady/landlord themselves, although no one's ever been able to prove anything.) frankly it's . . . magic, that people still rent to him.
due to these aforementioned bad ends, he's incredibly lucky if he gets enough time or leeway to take any sort of furniture with him from one place to the next. however, there is one incredibly comfy, wing-backed, sapphire-blue armchair that's miraculously managed to survive every move in the last ten or so years without being reported stolen — even though it has survived every move because it has, in fact, been stolen in the dead of night nearly every single time, by john and at least one of his buddies.
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