Dollar stores often place staple items at the back of the store so customers encounter other less-necessary items on their way there, leading to impulse buys.

Dollar stores procure their merchandise in bulk to help cut costs

In order to keep prices cheap, dollar stores source this merchandise from a variety of places, including liquidation sales (an event that happens when retailers need to sell off inventory quickly), directly from distributors, foreign markets, and more.

The products sold at dollar stores tend to be smaller in size

Recent reports suggest that dollar stores regularly practice 'shrinkflation,' the practice of making products smaller while keeping the price the same or even raising it.

Dollar stores are often found in rural, low-income areas of the US

Shoppers in these areas are increasingly turning to dollar stores for food. A study published in 2023 found that dollar stores were the fastest-growing food retailers by household expenditure share, with rural growth outpacing growth elsewhere (a 102.9% increase in rural areas versus 89.7% elsewhere).

Dollar stores tend to be smaller in size than other retail stores—and some think it's so customers can see all the products faster, increasing their likelihood of finding something they want to buy.

Dollar stores can have negative impacts on local businesses

When a household name dollar store like Dollar General opens in a small town or local community, neighborhood businesses often lose out on key sales, driving revenue down and putting them at risk of closure. This has led some experts to argue that dollar store chains can cause economic stress, rather than relieve it.

11,000 new US dollar stores opened between 2007 and 2017

Dollar store retailers experienced significant fiscal gains during the 2010s, which were then accelerated by the COVID-19 pandemic. But in recent years, dollar stores have been closing in large numbers and suffering financial hardship. Experts point to Walmart's strategy of decreasing prices to cater to inflation-fatigued customers, and point out that when Walmart does well financially, dollar stores typically suffer.

The best items to buy at dollar stores, according to a financial expert

Experts advise purchasing items like greeting cards, pregnancy tests, candy, gift and party supplies, and other items from the dollar store to maximize savings.

The worst things to buy at the dollar store, according to a financial expert

Some dollar store products can be low quality, and experts advise not purchasing them. This list includes 17 products to avoid at dollar stores, including batteries, toys, costumes, and more.

Dollar Tree was increasingly targeting higher-income shoppers in 2026

Dollar Tree stores have been opening in wealthier areas in recent months, with its 9,000th store opening in 2025 within a few miles of a Louis Vuitton store and a Porsche dealership. A recent survey found that 19% of the money spent at dollar stores came from households with annual income exceeding $100,000.

Explaining the 'Costco effect'

The "Costco effect" is a term used to describe how the warehouse chain has perfected the art of the impulse purchase. The strategic layout of the store and product placement encourage shoppers to explore and make impulse purchases after initially getting reeled in by low prices on high-quality goods. Read first-hand accounts from shoppers explaining the spell-like effect in this story.

Dollar General vs Dollar Tree vs Family Dollar: What's the difference?

A recent article claims that at Dollar Tree, almost all of the items are $1.25, although inventory seems more limited. At Family Dollar and Dollar General, prices tend to be slightly higher, though they often carry name brands.

The modern large chain dollar store business model originated in the South

The first Dollar General store opened in Kentucky, the first Family Dollar in North Carolina, and the first Dollar Tree in Southern Virginia. To this day, dollar stores have more distribution centers in the South than anywhere else in the US.

CostCo's low-cost hot dogs: The strategy of 'loss leaders'

Wholesale food distributors like Sam's Club, BJ's, and CostCo place a premium on cutting costs for their consumers to cultivate brand loyalty. Enter CostCo's enduring $1.50 hot dog and soda combo. It's a classic example of a so-called "loss leader," a product a company loses money on but which keeps customers coming back for more. Learn the history of wholesalers and how selling over 200 million hot dogs in a year builds CostCo's brand.

Costco and Amazon have very similar pricing across everyday staples

This article compares the average prices of everyday staples at Amazon and Costco, like toilet paper ($1.12 at Costco, $1.14 on Amazon), to help consumers decide which discount retailer to purchase from.

Batteries, baby wipes, and other Costco buys that might not be worth it

Costco's private label Kirkland sells just about everything at a price many customers say can't be beat. While often a cost-efficient way to buy household goods in bulk, some shoppers not all Kirkland products are created equal and there are some items that aren't worth the cost savings.

Family Dollar and Dollar Tree merged in 2015 before splitting in 2025

Dollar Tree completed its acquisition of Family Dollar for about $9B in 2015. However, in 2025, Dollar Tree sold Family Dollar to private equity firms Brigade Capital Management and Macellum Capital Management for just over $1B after Family Dollar lagged in performance.

Why grocery stores play music while you shop

Grocery stores don't play music just for the good vibes. Store soundtracks have been proven to increase spending and improve customer experiences, especially if the music is upbeat. If the tunes are nostalgic for the stores' key demographics, it can help develop a store’s desired brand identity. This article from Reader's Digest details the many reasons behind this strategy.

Experts argue some frugal habits—like driving farther for cheaper gas—aren't worth it

Other frugal habits experts suggest might not be worth the squeeze include driving to multiple stores in one trip to hunt for deals, as well as buying everything in bulk.

Some ads help create ‘symbolic value’ for products

A Rolex watch and a watch from the Dollar Store serve the same purpose: helping the wearer tell the time. But a Rolex is worth thousands of dollars while the Dollar Store watch is costs $1 because of symbolic value, or what the watch says about its wearer. This article helps break down the difference between the two.

With the advent of charge cards, Estée Lauder fought to get her products in department stores to benefit from impulse purchases

Because Estée Lauder focused on personal relationships and demonstrations as one of her primary sales strategies, getting her product in front of enough people was an early struggle. Similarly, many customers wanted to buy her products, but didn't always have the cash on hand. One of her biggest accomplishments was earning a retail spot at Saks on 5th Ave in Manhattan, which paved the way for her brand to become a household name and gave customers more flexibility to make purchases on the spot.

The 'dupe' economy is fueled by the youthful thrill of thrift

Historically, you don't want people to know you have a knock-off luxury item. But today's younger generations are embracing the "dupe" economy, an open celebration of luxury knock-off items where consumers are proud to pay less for something roughly equivalent to premium brand offerings.

Why there's a snack recession

Inflation and economic uncertainty have driven many Americans to make cuts to their snack budgets, according to reports from major food manufacturers like General Mills, JM Smucker, and Campbell's. Major retailers have also observed lower-income consumers cutting back on nonessentials due to the macroeconomic environment.

Some argue that the $2 bill could be more useful than the $1 bill

Inflation has made purchasing items with just a $1 bill extremely rare. At a time when dollar stores are no longer true to their name, it seems that the $2 note may be the more practical small bill to keep on hand. This article advocates for the use of $2 bills, while detailing their history of being overlooked and the communities that swear by them.

The 'Gruen transfer' refers to the price psychology behind large shopping malls, where shoppers make spontaneous purchases due to the overwhelming exposure to a variety of stores.

Regular coupon users pay less attention to the actual price of what they’re buying

The psychology of coupon users can feel counterintuitive: Research suggests regular coupon users actually prioritize coupon availability over actual price comparisons.

Soda is one of the most overpriced items at restaurants

All restaurant food is marked up—that's how they turn profits, after all—but soda is one of the most egregious. Fountain soda is remarkably cheap, with restaurants often paying a few cents for each glass before selling it for a few dollars. Food publication The Takeout estimates that the typical markup is around 1,000%.

Expanding supermarket chains began offering coupons to attract customers in the 1940s

This was partially a customer acquisition strategy devised to lure customers into chains and away from their local independent grocers.

As of 2024, Macy’s wanted to monetize its store closures through real estate deals

In a 2024 earnings call, Macy’s noted that while it’s remodeling and investing in some of its brick-and-mortar locations, it seeks to shutter other stores in lower-performing locations. It’s estimated that Macy's will close 150 locations through 2026.

Macy’s announced a series of pandemic-era store closures in January 2021

Specifically, as mall foot traffic declined, Macy’s sought to grow elsewhere (as did many other retailers around the same time).

More than 80% of New York City's newsstands have closed in the past two decades, in part due to a series of price caps that hurt the stands' ability to evolve.

Venture capitalists were once bullish on DTC brands

While a physical store can only hold so many objects, online retailers without the limits of four walls that could sell their products direct-to-consumer could theoretically be great investments. But they didn’t always provide investors with expected returns.

Many airports have dedicated stores for luggage, despite most passengers having luggage with them already

This podcast episode argues that airport luggage stores exist due, in part, to the security measures implemented after 9/11, creating capitve audiences of travelers. Some argue that airport luggage store shoppers coming from places where luggage is more expensive could be purchasing luggage in international airports. Specifically, the episode traces airport history from the very beginning to today's luggage store in your local Terminal B.

With Americans increasingly concerned about high grocery prices, experts suggest meal planning and using apps like TooGoodToGo to keep household food costs down.

Fast fashion companies such as Temu and Shein often took advantage of the de minimis exemption, a US tariff loophole that ended in 2025.

What Costco does with its unsold baked items

Ever wonder what Costco does with its seemingly endless supply of muffins and other baked goods? Rather than mark down the items or toss them in the trash, the big-box retailer donates the perishable food to Feeding America, a network of food banks and other programs that help feed those in need.

In 1955, the first Dollar General store was opened in Kentucky

It was created by a father and son, Cal Turner Sr. and JL Turner. At the time, no item in the store cost more than one dollar, although that has since changed.

Dynamic pricing algorithms allow online businesses or box stores with electronic price tags to change prices in real time based on supply, demand, time, location, and competitor prices.

Where to buy organic on a budget

In the past year, prices for organic fruits and vegetables rose 13.1%, significantly higher than the price increase of non-organic foods. While buying organic can be costly, certain stores can help organic shoppers save. This list highlights produce stores you may have been overlooking, like Trader Joe's and Walmart. Peruse the list and keep you grocery costs down.

Marketers often use psychological tactics to sway consumer action

From making someone feel as though a resource is scarce (“only one item left in stock!”) to invoking a sense of authority (“top dentists recommend this toothpaste”), marketers use a variety of psychological tactics to elicit a desired response from their target audience.