Dollar stores often place staple items at the back of the store

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 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.

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.

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.

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.

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.

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.

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.

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%.

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.

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.

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.

One odd Macy’s location is basically a museum

Here’s a list of things you wouldn’t expect to see at your average Macy’s store: a 19th-century French painting, a former midcentury children’s barbershop, nautical portholes, and the list goes on. Shoppers can find all those things and more in one unique Macy’s store in Pasadena, California.

About 69% of dangerous Black Friday incidents happen inside retail stores

Some posit that this is because tensions tend to run high there as customers fight over a limited physical supply of discounted goods. Another 20% of incidents take place at store entrances, where long lines often form well before the retailer opens its doors.

Credit card companies make money through interest, annual fees, and more

They also profit from interchange fees, the fee the retailer has to pay the credit card network in order to facilitate a transaction. The fee is typically between 1% and 3% of the transaction amount.

An explanation of dynamic pricing algorithms and the factors that impact them

Rather than static prices set by manufacturers or retailers based on the costs of goods, online businesses or box stores with electronic price tags can change prices in real time based on supply, demand, time, location, and competitor prices. These algorithms can be programmed to maintain or maximize profit margins based on shoppers' willingness to spend.

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.

Making sense of the complex logistics of product returns

Americans returned over $800B worth of stuff in 2022, more than the entire gross domestic product of some nations. This entertaining, in-depth video dives into the complex logistics of the reverse supply chain and how it works. Estimates peg the...

Netflix's original movies are intended to be in the background

Netflix's original content follows "taste clusters," those wildly specific tags for content, like "cerebral Southwestern murder mystery." The low-budget films and shows designed for these genre buckets are written with abundant exposition to remind casual viewers where they are in the story.

Why are books released in hardcover and paperback?

Publishers regularly release books in hardcover only to rerelease them in paperback a year later. It's a strategy that might seem counterintuitive. Why spend so much time on two separate releases? And why spend so much money on two individual products? This Reader's Digest article goes behind the scenes in the publishing industry to answer these questions and others, offering insight into the intricacies of a complicated business.

How five of the world's most expensive salt and spices are made

Part of the charm of certain spices and salts is their exotic origin, hailing from difficult-to-access locales or hewn via special processes. That also explains why they can be so expensive. Dive into the businesses of producing and marketing five of the world's most expensive food additives with this engaging video.

NFL stadiums are designed to maximize profit, not number of seats

Most stadiums are actually getting smaller as the cost of land rises. Owners have sought to increase returns by designing prestige suits and clubs (rather than just more general admission) and laying out the stadium to maximize customer purchases.

Netflix profits when you're not watching, and its movies are designed that way—read a detail-rich critical essay exposing lesser-known Netflix takes

How Amazon operates a 'flywheel' business model, a self-reinforcing cycle that drives continuous growth

Hedge funds, the private investment firms that trade a wide swath of financial assets, make money by imposing steep fees on investors and from the fund's investment performance.

When a Paris department store hesitated to sell Estée Lauder's perfume, she 'accidentally' broke a bottle, causing the smell to spread throughout the store and shoppers to start asking to buy the scent.

The US dollar is the most widely circulated currency in the world, and is involved in nearly 90% of global transactions

The price of gas is a composite made up of several different factors, with the federal gas tax making up less than 20% of what drivers pay at the pump.

Some coin denominations have ridges etched on their sides, partly to prevent counterfeiting, in a practice called 'reeding.'

Fast-casual restaurant Chili's is experiencing a resurgence, with its parent company recently reporting a nearly 32% increase in sales, thanks to passionate Gen Z fans on TikTok.

Up to a million Girl Scouts sell about 200 million cookie boxes every spring, generating $800 million, largely because refusing a child is frowned upon

Domino's Pizza's 30-minute delivery guarantee was responsible for the chain's 1980s surge, but it was discontinued after the company was found liable for delivery driver accidents.

Dozens of S&P 500 stocks, including Coca-Cola and Walmart—known as the dividend aristocrats—have increased dividends every year for 25 years

The 1987 Nintendo video game 'Stadium Events' isn't known for being particularly fun, but its scarcity has made it a highly sought-after item that has sold for up to $35K at auction.

Use this tool to calculate the dollar value of your parental mental load, from meal planning to coordinating after-school care, then see resources that help generate solutions.

Art theft is the third-largest source of criminal revenues worldwide, thanks in part to the subjective nature of valuing a work of art.

Sony set the standard for cylinder-shaped batteries when it repurposed manufacturing equipment used to make rolls of magnetic recording tape.

Gerrymandering works through two techniques: cracking opposing voters across districts to dilute their power, and packing them into a few to waste their votes in lopsided majorities.

Massive 3D printers have been used to build homes by stacking layers of 'concrete toothpaste,' a fire-resistant material that effectively insulates against outside noise.

Hurricanes, which rely on air consistently spinning in the same direction, cannot cross the equator because air curves in opposite directions north and south of it.

To reduce wrinkles in clothing, research recommends gentle wash cycles with more water and tumble drying with smaller loads and longer times.

For centuries, Niagara Falls has been a magnet for daredevils seeking to conquer one of nature's most powerful wonders, with its 200-foot drop and water rushing at 32 feet per second with 280 tons of force.

When caught in the mouths of cardinal fish, seed shrimp release glowing, bioluminescent chemicals, which alert predators of the cardinal fish, prompting the shrimp's ejection.

A small portion of The Winstons' 'Amen, Brother,' an obscure '60s gospel record, is the basis for thousands of hip-hop tracks, making it one of the most sampled records ever that's informally known as 'the Amen break.'

While atoms are normally made of protons, neutrons, and electrons, exotic ones have been built with antimatter—alternate versions of normal matter that live for fractions of a second and are about a billion times as rare.

Apollo astronauts left items in the moon's 'toss zone,' including golf balls, family photos, and bags of human waste, to make room for lunar rocks.

Alzheimer's can lead to brain shrinkage, with an average of around 2% of volume reduction per year