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James A. Brown에서 제공하는 콘텐츠입니다. 에피소드, 그래픽, 팟캐스트 설명을 포함한 모든 팟캐스트 콘텐츠는 James A. Brown 또는 해당 팟캐스트 플랫폼 파트너가 직접 업로드하고 제공합니다. 누군가가 귀하의 허락 없이 귀하의 저작물을 사용하고 있다고 생각되는 경우 여기에 설명된 절차를 따르실 수 있습니다 https://ko.player.fm/legal.
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Why Dollar Stores Are Betting on a Recession

2:27
 
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Manage episode 440817098 series 3524289
James A. Brown에서 제공하는 콘텐츠입니다. 에피소드, 그래픽, 팟캐스트 설명을 포함한 모든 팟캐스트 콘텐츠는 James A. Brown 또는 해당 팟캐스트 플랫폼 파트너가 직접 업로드하고 제공합니다. 누군가가 귀하의 허락 없이 귀하의 저작물을 사용하고 있다고 생각되는 경우 여기에 설명된 절차를 따르실 수 있습니다 https://ko.player.fm/legal.

Dollar stores are facing a unique challenge as they plan to open 1,300 new locations despite declining profits. James Brown delves into the paradox of these stores expanding while their core customers, low-income shoppers, spend less due to inflation. As mega-chains like Walmart and Target slash prices to capture the same market, dollar stores must navigate fierce competition, including the improving delivery systems of Amazon in rural areas. Meanwhile, affluent shoppers continue to avoid dollar stores, and the industry battles rising retail theft and staffing difficulties. Brown questions whether this expansion strategy is a wise gamble on an economic downturn or a risky move that might backfire.

Let me know what you think in the comments at jamesbrowntv.substack.com

Email: jamesbrowntv@gmail.com

Leave me a voicemail or text: 585-484-0339

Follow me on social media:

YouTube Main Channel: https://www.youtube.com/channel/UCixNKcH6SP5OCLHMdQ_gVTw

Instagram: https://www.instagram.com/jamesbrowntv/

Facebook: https://facebook.com/jamesbrowntv

Twitter: https://twitter.com/jamesbrowntv

James Brown delves into the intriguing dynamics of the dollar store industry, exploring the paradoxical strategy of expansion amidst financial strain. Despite reporting declining profits due to inflationary pressures and increased competition from retail giants like Walmart, Target, and Amazon, the companies behind Dollar Tree and Dollar General are planning to open 1,300 new stores. This strategy is fueled by the anticipation of an economic downturn, where historically, dollar stores have thrived as a budget-friendly option for consumers. James examines the impact of inflation on low-income shoppers, who are the primary customers of dollar stores, and how affluent consumers are steering clear of these establishments. He also discusses the challenges of hiring and retaining employees in this sector, compounded by rising retail theft. This commentary raises questions about the sustainability of this expansion and whether it could turn into a successful gamble or a risky endeavor.

Takeaways:

  • Dollar stores are expanding despite decreasing profits, betting on a potential economic recession.
  • Inflation is causing low-income shoppers to spend less, impacting dollar store earnings.
  • Mega chains like Walmart and Target are cutting prices, increasing competition for dollar stores.
  • Amazon's improved delivery in rural areas is challenging dollar stores' dominance in those regions.
  • Hiring and retaining employees is difficult, and retail theft is a growing problem for dollar stores.
  • The decision to open 1,300 more stores seems counterintuitive, but it's a strategic gamble.

Links referenced in this episode:


Companies mentioned in this episode:

  • Dollar Tree
  • Dollar General
  • Walmart
  • Target
  • Amazon

  continue reading

216 에피소드

Artwork
icon공유
 
Manage episode 440817098 series 3524289
James A. Brown에서 제공하는 콘텐츠입니다. 에피소드, 그래픽, 팟캐스트 설명을 포함한 모든 팟캐스트 콘텐츠는 James A. Brown 또는 해당 팟캐스트 플랫폼 파트너가 직접 업로드하고 제공합니다. 누군가가 귀하의 허락 없이 귀하의 저작물을 사용하고 있다고 생각되는 경우 여기에 설명된 절차를 따르실 수 있습니다 https://ko.player.fm/legal.

Dollar stores are facing a unique challenge as they plan to open 1,300 new locations despite declining profits. James Brown delves into the paradox of these stores expanding while their core customers, low-income shoppers, spend less due to inflation. As mega-chains like Walmart and Target slash prices to capture the same market, dollar stores must navigate fierce competition, including the improving delivery systems of Amazon in rural areas. Meanwhile, affluent shoppers continue to avoid dollar stores, and the industry battles rising retail theft and staffing difficulties. Brown questions whether this expansion strategy is a wise gamble on an economic downturn or a risky move that might backfire.

Let me know what you think in the comments at jamesbrowntv.substack.com

Email: jamesbrowntv@gmail.com

Leave me a voicemail or text: 585-484-0339

Follow me on social media:

YouTube Main Channel: https://www.youtube.com/channel/UCixNKcH6SP5OCLHMdQ_gVTw

Instagram: https://www.instagram.com/jamesbrowntv/

Facebook: https://facebook.com/jamesbrowntv

Twitter: https://twitter.com/jamesbrowntv

James Brown delves into the intriguing dynamics of the dollar store industry, exploring the paradoxical strategy of expansion amidst financial strain. Despite reporting declining profits due to inflationary pressures and increased competition from retail giants like Walmart, Target, and Amazon, the companies behind Dollar Tree and Dollar General are planning to open 1,300 new stores. This strategy is fueled by the anticipation of an economic downturn, where historically, dollar stores have thrived as a budget-friendly option for consumers. James examines the impact of inflation on low-income shoppers, who are the primary customers of dollar stores, and how affluent consumers are steering clear of these establishments. He also discusses the challenges of hiring and retaining employees in this sector, compounded by rising retail theft. This commentary raises questions about the sustainability of this expansion and whether it could turn into a successful gamble or a risky endeavor.

Takeaways:

  • Dollar stores are expanding despite decreasing profits, betting on a potential economic recession.
  • Inflation is causing low-income shoppers to spend less, impacting dollar store earnings.
  • Mega chains like Walmart and Target are cutting prices, increasing competition for dollar stores.
  • Amazon's improved delivery in rural areas is challenging dollar stores' dominance in those regions.
  • Hiring and retaining employees is difficult, and retail theft is a growing problem for dollar stores.
  • The decision to open 1,300 more stores seems counterintuitive, but it's a strategic gamble.

Links referenced in this episode:


Companies mentioned in this episode:

  • Dollar Tree
  • Dollar General
  • Walmart
  • Target
  • Amazon

  continue reading

216 에피소드

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