Discount Retail Chain Biedronka, owned by Portuguese retailer Jerónimo Martins, operates NCR Voyix self-checkouts in 87 per cent of its stores. Biedronka has already 15,000 self-checkouts in use. All devices are supplied by NCR Voyix. The discounter operates in Poland, already has the self-checkouts from the US company in 87% of its stores. The SCOs are equipped with AI-based article recognition and loss prevention systems. The self-service terminals are used at locations in large cities such as Warsaw, Krakow, Wroclaw, Gdansk and Katowice, as well as in medium-sized and smaller towns. In addition to manned checkouts, NCR Voyix terminals are in use in over 3,000 Biedronka stores. Each location that offers self-checkouts has an average of five terminals. It takes customers around two minutes on average to check out at the self-checkouts, which is shorter than at manned tills. The average receipt at the self-checkout terminals is just over 46 Polish zloty (PLN), equivalent to around 10.40 euros. Biedronka does not allow cash payments at the self-checkouts. Accepted means of payment are bank cards, the in Poland widely used payment system Blik, e-codes, the Moja Biedronka card and with a telephone number, the Biedronka app. Vision Recognition recognises fresh products The self-service checkouts use NCR Voyix’s AI-based Vision Recognition solution to identify fresh products such as fruit and vegetables, bread and baked goods. Based on this result, shoppers are suggested a suitable selection of symbols for their fresh products on the display of the self-checkout without having to click through a large product catalogue. This process helps to significantly reduce the time taken to register items at the self-checkout. “All of Biedronka’s activities are focussed on customer convenience,” explains Anna Nowakowska-Kaźmierczak, Operational Project Manager at Biedronka. “The intensive expansion of self-service checkouts in our shops is a clear response to their need to be able to pay for their favourite products conveniently, efficiently and quickly.” Weight checks strengthen theft protection To ensure loss prevention at the self-checkout, cameras integrated in the scanner are used. These help to detect AI-based no-scan events and mismatches when the customer scans the goods. If irregularities occur, both the shopper on the display of the self-checkout and the staff in the store are alerted immediately. To prevent fraud, SCOs at Biedronka are also equipped with scales. This control element checks whether it detects differences in weight between the scanned product and the item in the storage area on the scales. At the exit of Biedronka stores, however, shoppers can leave the store without exit gates. According to information provided to The Retail Optimiser, the retail company is currently testing various exit control solutions. NCR remains the market leader in self-checkouts According to the latest report by British market research company RBR Data Services, a Datos Insights company, NCR remains the market leader in self-checkout systems (as reported by The Retail Optimiser). The US company is extending its market leadership through deployments in its core markets in Europe and the Americas, with its long-term customers including Walmart and some of the UK’s leading retailers. Read more: Biedronka speeds up self-checkout rollout with NCR Voyix (retail-optimiser.de)

Discount Retail Chain Aldi Süd Germany is taking an unconventional approach to the fitness industry with its Aldi Sports app and low-cost gym membership pricing. The app gently introduces customers to the topic of fitness with training videos, nutrition tips and recipes, sports nutrition, and training plans. Unlike most studio chains, Aldi offers flexible subscriptions with no long-term commitments, allowing customers to book individual months similar to a prepaid mobile phone. Aldi's partnership with market leader McFit enables the company to sell gym memberships at competitive prices that are likely to significantly impact the industry. The company hopes to win new customers and reach a turnover of billions while providing access to affordable fitness options. The Aldi Sports app offers a range of features to help customers reach their fitness goals. With training videos for at-home workouts, users can learn and implement new exercises. The app also provides helpful nutrition tips and recipes for those seeking to improve their diet. Aldi Sports includes detailed sports nutrition guides, along with pre-designed training plans that help users reach specific fitness objectives. Catering to a diverse range of fitness levels and abilities, the Aldi Sports app is a comprehensive tool designed to support and guide users through their fitness journey. Aldi's approach to gym membership pricing is just as innovative as its app. The company offers low-cost, monthly subscriptions to their gyms, with no long-term commitments required. Customers have the flexibility to book individual months, similar to a prepaid mobile phone. To make this possible, Aldi partnered with the market leader in gym memberships, McFit. With their partnership, Aldi sells gym memberships at competitive prices, likely to unsettle many studio providers. By providing affordable and accessible fitness options, Aldi aims to place itself at the forefront of the industry. Aldi's low-cost, flexible gym memberships and innovative fitness app have the potential to cause significant disruption in the fitness industry. Offering access to affordable fitness options, the company is likely to compete with high-cost gym memberships and other fitness club apps that don't operate their own studios but provide access to several fitness chains. Aldi's low prices, no long-term commitment, and partnership with McFit are predicted to win new customers and create a significant impact on the fitness market. With ambitious growth targets in place, Aldi is poised to revolutionize the industry and open up affordable fitness options for everyone. Although the pandemic has had a significant impact on the fitness industry, the sector is still making a gradual recovery. The number of gym memberships is on the rise, and the trend is likely to continue in the second half of the year. After a staggering decline in turnover due to the pandemic, the industry reached 4.9 billion euros in 2022, almost at pre-COVID levels, according to the Deloitte study. Aldi's entry into the market with affordable options is sure to make the industry even more competitive. The company's comprehensive approach to fitness solutions positions it well for growth and innovation in the years ahead. In conclusion, Aldi Süd's entry into the fitness industry with its Aldi Sports app and flexible gym membership pricing marks a significant shift in the market. With a range of features such as training videos, nutrition tips, sports nutrition, and training plans, Aldi's goal is to offer affordable and accessible fitness options for everyone. The company's innovative approach and partnerships with market leaders like McFit are likely to bring disruptive changes to the industry. By providing affordable options to customers, Aldi is set to redefine the industry's antiquated business model and create significant benefits for fitness enthusiasts. Read more: Discounter: Flexibles McFit-Abo zum Kampfpreis – So mischt Aldi den Fitnessmarkt auf (handelsblatt.com)

Discount Retail Chain Aldi China has set its sights on expanding its presence in China, despite the challenges posed by the COVID-19 pandemic and China's hard-line approach to "zero COVID". Aldi has announced plans to open 500 to 600 stores in Shanghai this year alone, and has already brought 27 stores to the city over the past three years, with each expected to generate an annual sale of 20 million RMB ($2.92 million). Aldi has integrated 11 of the existing stores into shopping malls, with the remaining 13 located in residential neighbourhoods with high foot traffic. Aldi's offline expansion is based on its prior success in the digital space, where it has been operating with e-commerce at the core of its business model. Despite the challenges confronting Aldi's offline expansion plans in China, the discount retailer has demonstrated its ambition to tap into the world's largest consumer market and play a big role in shaping China's retail industry. The ongoing pandemic and a 0.3% year-on-year decrease in retail sales of urban consumer goods in the first seven months of 2022 posed challenges for Aldi, but the company remains committed to its China ambitions, planning to install 500 to 600 stores in Shanghai alone. Eyebrows may be raised in the face of Aldi's China ambition, but the company appears to remain unfazed. Aldi embarked on its foray into the Chinese market in 2017 through Alibaba's Tmall Global, a leading cross-border e-commerce platform in China, which allowed them to reach out to Chinese consumers looking for imported goods. The next year, Aldi launched its own online flagship store and later on landed on WeChat and other major Chinese retail and food delivery service platforms such as Meituan and Eleme, further paving the way for its offline expansion. Aldi's strategy in the digital space has been successful, with online platforms remaining the company's primary source of sales and playing a crucial role in its offline expansion plans in China. Aldi has managed to win over middle-class consumers in China by introducing a low-price, "discount retailer" strategy, allowing them to compete with other local and foreign retail giants in the market. This is made possible by selling mostly private label products, with over 90% of its offerings being items produced under Aldi's own brand names. This gives Aldi better control over the entire production process while avoiding additional costs associated with third-party production. Furthermore, Aldi has recently introduced a low-bar loyalty membership concept that is free of charge. This allows a more accessible membership concept to the public, with special services provided based on the accumulated purchase points. Aldi's strategies in digital and offline expansion seem to be paying off in China, with the company continuously gaining more recognition from the Chinese market. Despite being a late entrant, Aldi has outperformed other global labels during the industry downturn and established itself as a reliable name in China's retail industry. Moreover, as online grocery shopping became more common during the pandemic, Aldi's digital ecosystem and top-notch supply chain system have allowed the company to stand out in the market. With a low-price strategy synonymous with affordability, Aldi can now increase its competitiveness, ensuring that it remains a valuable contender in the ever-growing Chinese consumer market. In conclusion, Aldi's future growth prospects in China remain positive, particularly with its strong online presence and successful offline expansion efforts in the mainland. Continuous adaptations will be required to maintain a sustainable expansion, however, as China's market dynamics and consumer demands continue to evolve. As a late entrant to China's retail industry, Aldi has shown its potential to compete with existing giants in the market, but it remains to be seen how the company will adapt to shifting market trends in the future. Nevertheless, Aldi's current and future strategies will undoubtedly shape the country's retail landscape and inspire other companies to follow suit. Read more: Can Aldi pull off its China expansion amid peers’ retreat? (daoinsights.com)

Discount Retail Chain Aldi UK has long been winning awards for quality, innovation and disrupting the UK grocery market. Tight focus and an ambitious growth strategy has delivered over 7% of total market share in the UK. Aldi UK asked UK based CADA Design. CADA Design is a pioneering F&B designers focussing on strategy, branding & interior design. It made a new Aldi Fresh store concept to be rolled out for their “Project Fresh” transformation programme. This included a period of concept creation, prototyping and testing, and then design development, prior to moving into the current roll-out and delivery programme. Each Aldi store has its own specific, localised requirements, and also have to balance Aldi’s core messages of provenance and value. Each week, multiple Aldi stores are opened or transformed, so high pace and accuracy are essential requirements in delivering the necessary graphics and implementation plans. See here the first store layout results:

Discount Retail Chains ALDI NORD and ALDI SÜD remains number one in German grocery food retail when it comes to 'value for money' for the fourth time in a row. Aldi Süd Group together with the ALDI Nord Group prevailed against 17 other competitors in the survey by YouGov and Handelsblatt and were the most convincing to the over 900,000 respondents. According to Erik Döbele, Managing Director Buying & Customer Interaction at ALDI SÜD, this award means two things: The direct feedback from our customers confirms to us that we are on the right track with our promise to make the good life and a conscious and sustainable diet affordable. This award is particularly a strong appreciation for the tireless efforts of our entire #aldicrew. Whether in the 2,000 Aldi Süd stores and 2,200 Aldi Nord German stores, the administration in Mülheim a/d Rühr and Essen or the logistics centers. This is a great sign for all employees who make it possible every day.

Discount Retail Chain Aldi Spain maintains its ambitious pace of openings to extend its presence in Spain. The German discount grocery operator plans to open a total of 50 new stores during 2024, in line with those opened in 2023. With them, it will approach half a thousand stores in the country, after having closed 2023 with a total of 435. According to the company, the bulk of the new stores will be concentrated in Andalusia, the Community of Madrid, the Valencian Community and Catalonia, regions that will absorb more than half of the openings. These are the priority markets for the operator, both in terms of current presence and the number of potential buyers it can reach. Aldi is also planning openings in the Canary Islands, where it arrived in the summer of 2022, and strengthening its position in the north of the country, with openings in the Basque Country, Galicia, Cantabria and Castilla y León. It also points to Extremadura, Murcia and the Balearic Islands among the regions where it will also open some time. These new stores will also be accompanied by a new logistics centre in Miranda de Ebro, which the company plans to open in the first half of the year. It will have 40,000 square meters and will support its growth in the north of Spain. This is in addition to the centres in Masquefa (Barcelona), Dos Hermanas (Seville), Pinto (Madrid), San Isidro (Alicante), Agüimes (Gran Canaria), and Sagunto (Valencia), which opened at the end of 2023 and which Aldi expects to be fully operational in February. "Years ago we activated an ambitious expansion plan that we maintain and that is allowing us to increase our presence in Spain in a continuous and sustained way," said the CEO of Aldi in Spain, Valentín Lumbreras, in a statement. The balance of 2023 resulted in 46 new supermarkets. According to the company, it was the year with the highest number of openings since 2019, and allowed it to close the year with a network of 435 stores and a sales area of 480,000 square meters, 11% more. Its rival in supermarket format and model, Lidl, has about 670 and aims to exceed 700 by 2024. Aldi has a market share in Spain of more than 1.5%, still far from its rivals, although constantly growing. After having covered practically the entire Spanish territory, the key to making a leap in share will be to consolidate that presence with more openings. According to the company, during the last year it has gained more than one million customers, and already has more than seven million in Spain. Read more: Aldi se acercará a las 500 tiendas en España con 50 aperturas en 2024 | Empresas | Cinco Días (elpais.com)

Brand Discount Retail Chain Netto, owned by German EDEKA, and retail tech provider Trigo relies on strong partnerships with visionary retailers. When partnerships are built it can break one tech barrier after another and redefine what’s possible in retail innovation. After collaborating to bring together Trigo’s checkout-free solution and Netto’s discount shopping experience at the first joint Netto store in Munich, sight is set on a new ambitious targets. The latest store and second Trigo and Netto store, is a tech marvel. At 800 sqm it is the largest frictionless store in Europe and the world’s largest retrofitted grocery supermarket, with some 5,000 SKUs. But the real innovation is our real-time receipt experience. Shoppers at the new Netto store will be able to view and approve their baskets and pay (using card or mobile payment) before they leave the store. Trigo predict this feature will accelerate consumer adoption of frictionless checkout by inspiring confidence and trust in the technology. What’s more, by achieving real-time receipt capability, Trigo’s EasyOut solution now directly addresses the most stringent retail regulations, opening up new markets in those areas where it is a legal requirement to provide a receipt in real-time while the shopper is in the store. Netto Regensburg is a true first, but moving forward Trigo will enable real-time receipts in all Trigo-powered stores. The store automation 2.0 revolution is underway. Read more: Netto and Trigo open smart supermarket featuring real-time receipts (trigoretail.com)

Discount Retail Chain REMA 1000, owned by Norwegian Rema-Reitan, keeps their competitive edge with the help of Electronic shelf labels and an army of 'price hunters'. Though shopping behaviour continuously changes, one thing remains the same: the importance of price. And for REMA 1000, a discount grocery retailer in Norway, offering the lowest prices in a hyper-competitive market is mission critical. In its efforts to lead on price, REMA is using technology from Revionics to manage, display and adjust its prices daily in response to what its competitors are offering, explained Partap Sandhu, a pricing analyst at REMA 1000, during a presentation at NRF ’24 Retail’s Big Show in New York City earlier this week. The discount grocer sends “price hunters” armed with devices to collect price information from its competitors throughout the country. The team of price hunters record up to one million unique price observations per week, according to Sandhu. Pricing data is uploaded to a dashboard that is overseen by a team of four from the company’s head office. REMA 1000 compares the competitors’ data to its own and makes real-time price adjustments to electronic shelf labels (ESL) and point-of-sale systems across all 675 of its stores. From start to finish, the process takes as little as 15 minutes. “We are dynamically pricing,” said Sandhu. “So, we have about 700,000 transactions per day, 45,000 items per store and we also have 150,000 competitor price observations per day.” Sandhu said REMA 1000 makes approximately 100 price changes per day and prices on a specific product can sometimes change as many as six times per day, but using the ESLs frees up in-store staff to focus on more meaningful tasks. READ: How retailers like Kroger and Jacksons Food are using AI to combat theft With ESLs, “We can do everything we want… we can implement 4000, 5000, 6,000 price changes each day if we want,” said Sandhu. “So, I mean, the sky is the limit once you have a system that supports all of those changes in stores and having ESLs where you don't need to do any operational things and interfere with what the employees are doing.” Sandhu said the grocer adopted electronic shelf labels approximately 10 years ago as competition in the market intensified. “We needed to compete to take out Lidl… had we not, we would have been bankrupt. To stay in the market, you have to have the lowest price. That’s it.” In the battle against Lidl, REMA 1000 was the clear winner. The German discount chain Lidl, a success in most other European countries, struggled to get off the ground in Norway and eventually sold all 50 of its stores in the country to REMA 1000. “Our business model is pretty simple,” said Sandhu. “We drive low prices. Low prices drive customers, so we can increase our sales. Higher sales mean we can have a better cost price from the vendors. Lower cost means, again, lower prices. So, it’s a pretty simple model.” For Sandhu, the most important key performance indicator (KPI) is “how much difference in price we have to, of course, our competition.” Another marker of success, said Sandhu, is nabbing the No. 1 spot on Norwegian newspaper VG’s list of grocery chains offering the lowest prices. The newspaper conducts its own price checks on grocery items from chains across the country and publishes the results. “This is a huge marketing thing for us. When we win, we use it in our marketing that REMA is the cheapest in Norway,” said Sandhu. “For us, it’s important to show customers we have the lowest prices.” Falling short of No. 1, he said, “would be disastrous.” Read more: How one Norwegian discount grocer remains competitive on price | Canadian Grocer

Discount Variety Retail Chain Action is known for the typical blue Action logo on the big white shopping bags. Even though there are now a few 100 stores in Germany and more than 2,000 stores in Europe, Action does not yet have the same level of awareness as other discounters. Reason enough to take a look behind the scenes and explain what action is and who is behind it. Action is an international retail chain that operates in various countries in Europe. The range of inexpensive products offered is huge, you can find different categories such as household goods, decoration, toys, office supplies, electronics, cosmetics. What's so special about action? Action offers a wide variety of products at comparatively low prices. The assortment changes quite frequently. The stores tend to be large and have a sober warehouse-like design to accommodate the large amount of goods. The attractive price-performance ratio and the immense variety of products make it very popular with consumers.According to its own information, Action offers about 6,000 items, 1,750 of which cost less than one euro, according to the company. Action: What's the mind behind it? In 1993, the story of Action began with a small shop in Enkhuizen, The Netherlands. Originally founded by Dutch entrepreneurs Gerard Deen and Rob Wagemaker, it has quickly evolved. The exact ownership of Action has changed over the years. In 2019, UK-based investment fund 3i Group acquired a majority stake in Action. Prior to this acquisition, the company was owned by private equity firm Advent International. How successful is Action? Relatively quickly, Action became the fastest-growing discount retailer in Europe, according to the company's own website. Over 15 million customers come every week, and another 6.5 million people visit the website Action.com weekly. Action is experiencing strong revenue growth. In 2022, the company generated sales of approximately 5.3 billion euros and a profit of 700 million euros and still grows rapidly. There are now over 2,500 Action stores across Europe, including in the Netherlands, Belgium, Germany, Luxembourg, France, Poland, Czech Republic, Austria, Italy, Spain and Slovakia.The fastest-growing non-food discounter in Europe currently employs around 80,000 people from 136 countries. Read more: Action: Who is actually behind the cheap discounter? - wmn

Discount Retail Chain Lidl Italia moves towards electrification and has debuted the first all-electric refrigerated semi-trailer. Lidl Italia, in collaboration with LC3 and Schmitz Cargobull, has put on the road a pioneering development in the world of transport:the first electric refrigerated semi-trailer. This breakthrough is not only a milestone in modern logistics, but also a reflection of the growing commitment to the environment and sustainability. With more than 730 stores in Italy, Lidl continues to lead in logistics innovation. The electric semi-trailer, developed togeer with LC3, a carrier renowned for its focus on sustainability, and Schmitz Cargobull, a leader in trailer production, is a testament to its progressive vision. This revolutionary vehicle aligns with the ambitious goal of Net Zero Emissions by 2050, set by the European Union in the Green Deal. The technology behind the semi-trailer is remarkable: the ideal cargo temperature is maintained by two 32 kWh lithium-iron-phosphate batteries, which charge in just 2 hours and offer a range of 4.5 to 10 hours. In addition, these batteries are recharged while driving and recover energy during braking, energy efficiency that was previously wasted. From an environmental perspective, the impact is significant. By not using fossil fuels for refrigeration, the electric semi-trailer allows a total reduction in CO2 emissions, equivalent to a saving of approximately 9.5 tonnes of CO2 and around 6,000 litres of diesel per year. This breakthrough is a major step in the decarbonization of transportation, a sector traditionally dependent on fossil fuels and notorious for its environmental impact. Lidl opens its first charging station in France and it's looking great Luca Ros, Logistics Director of Lidl Italy, highlighted the importance of this collaboration with LC3 Trasporti and Schmitz Cargobull. He thanked them for their commitment and emphasized that this semi-trailer is the result of a shared vision and joint effort. For his part, Michele Ambrogi, President of LC3 Trasporti, stressed that Schmitz's eCOOL semi-trailers not only meet LIDL's sustainable transport needs, but also offer a comprehensive solution that encompasses environmental, social and economic sustainability. The introduction of this semi-trailer is a clear indication of how collaboration and innovation can lead to effective sustainable solutions. By reducing CO2 emissions and offering a competitive advantage in the market, this vehicle not only benefits the environment, but also businesses looking to adapt to future European Union regulations. The commitment of Lidl Italia and its partners to decarbonization is a model to follow in the industry. Their focus is not only aimed at meeting environmental guidelines, but exceeding them, positioning themselves as leaders in the race towards a greener and more sustainable future. With initiatives like this, the transition to cleaner and more efficient logistics is underway, laying the groundwork for a more responsible and environmentally conscious transport industry. Read more: Lidl already uses its first 100% electric refrigerated semi-trailer (somoselectricos.com)

Discount Retail Chain Lidl has been named the World's Simplest Brand in the "2023 World’s Simplest Brand Tenth Edition" by Siegel+Gale. According to the report, Lidl is recognised for simplifying healthy, sustainable eating for generations to come. To determine the global state of simplicity, Siegel+Gale fielded a survey with more than 15,000 respondents in nine countries to gather perspectives on simplicity and how industries and brands make people’s lives simpler or more complex. Globally, 25 industries and more than 800 brands were rated on their perceived simplicity. The brands were selected as a representative set that respondents would be most likely to know and/or use in each country. After placing Lidl in the Top 10 in the last five editions, the German discount supermarket Lidl had number one in the bag, because the brand consistently provides consumers with the products they love at guaranteed bargain prices. This title is a testament to the hard work and dedication of more than 300,000 of Lidl employees who work tirelessly to keep things simple for consumers. For 50 years, Lidl has produced high-quality items, low prices, and simple experiences. Read more: worldssimplestbrands.com

Allison Severance cradled an apple in her hand. It looked like a deflated balloon, soft, brown and leaking. This can’t be what passes for groceries, she thought. Not on my watch. She was standing in a Dollar General store a few miles from Cascade, Maryland, where she and a dozen other residents are suing a developer to stop a Dollar General from going up. “The apples were rotten, the zucchini was rotten, the spinach was slimy,” says Severance, who works as a potter and a ceramics teacher out of a 19th-century barn on her property. “It was horrible.” Cascade, a village of 840 people, has three dollar stores within five miles of town. When Severance heard her next-door neighbor was selling his land to put up another one she made yard signs for other Cascadians to plant on their lawns. She walked up and down the highway waving an enormous banner that read “Say no to Dollar General.” Along with a dozen others, she hired a lawyer to fight the developer in court. The village quickly racked up thousands in legal fees; Severance held ceramics fundraisers, donating all of the proceeds to pay for the legal bills. Allison Severance hung a “say no to Dollar General” banner on the side of her Maryland barn. It’s been there for nearly two years. (Provided by Allison Severance) “I just can’t believe this has been going on for almost two years,” she says. “Dollar General is invasive. I just pray that the judge says, ‘Enough is enough.’” Dollar store backlash is happening all over the country. The stores are routinely blamed for gouging consumers, making it harder for stores selling healthier food to open nearby, and failing hundreds of government safety inspections, making the stores so unsafe even shareholders are concerned. To fight back, like Severance, some ~60 communities have attempted to restrict their growth by limiting their locations or banning them outright. “I haven’t seen a backlash like this before,” says Kennedy Smith, senior researcher for the Institute for Local Self-Reliance. “And I think the reason is, the issue is a perfect embodiment of what the problem is with corporate power.” But as popular as it’s been to ban dollar stores, replacing them with a viable alternative is much more complicated. Love ’em, hate ’em, need ’em In the United States these days, it’s almost impossible to avoid dollar stores. An estimated 249m Americans now live within five miles of one, making them nearly as common as McDonald’s franchises. A total of 35k stores are owned by Dollar General and Dollar Tree, the two largest players in the space. Dollar stores are the fastest-growing food retailers in the US, both by sheer number and food spending. In 2022, Dollar General raked in $37.8B in revenue, followed closely by Dollar Tree at $28.3B. The stores are also known for serving low-income communities and food deserts, but data cruncher Morning Consult found last year that 45% of households making $100k+ were open to shopping at discount stores, up from 39% the year before. Basically, people need them. That doesn’t stop people from hating them, too. The stores offer lower prices while also offering lower quantities, making their wares more affordable, but only in the short term. And those wares are notoriously unhealthy. Grocery stores often lose money on fresh produce and make up for it with boxed goods in the aisles — higher markup, lower turnover. Dollar stores take this one step further: They sell only those profitable foods, which are shelf-stable, higher in calories, and lower in nutrients. Most don’t sell fresh produce at all. Dollar General is planning to change that — the company sells fruits and vegetables in ~3.9k stores, and plans to increase that to ~10k over the next few years. In a statement, Dollar Tree touted its convenience, ability to create jobs, and potential for economic development. “We often repurpose previously vacant retail space in neighborhoods that have retail needs, keeping centers and other adjacent businesses open and serving communities, especially those that are underserved,” a spokesperson told The Hustle. Two years ago, an unchecked rat problem in a Dollar Tree warehouse in Arkansas led to an infestation in stores across six states. The FDA issued product recalls that led to 404 stores pulling most of their food from shelves due to live rodents, dead rodents, excrement, and more contaminants. The chains’ business model relies on lean staffing, which has made the locations hotbeds for looting, robbery, and other crimes. Last year, at one Ohio store, a customer killed an employee with a machete. According to the Gun Violence Archive, a nonprofit, dollar stores have been the site of gun violence incidents 727 times over the last nine years. In other words, once every 4.5 days. Even with stores operating with a single cashier, together the companies employ ~370k nationwide — 0.001% of the entire country works at a dollar store owned by one of the two major chains. (Last year, Bloomberg Businessweek declared Dollar General “the worst retail job in America.”) For every TikTok influencer showing off their dollar-store grocery haul or sharing their latest #dollarstoredinner, there’s a TikTok calling out the chains for unkempt stores and selling products that are broken, bad, or just plain ugly. “This toothbrush made my baby’s gums bleed,” one mother said. At @DollarTreeDinners on TikTok, Rebecca Chobat makes a Thanksgiving dinner from scratch for $70 for her 1.2m followers. (TikTok) Beginning in 2018, municipalities across the country began taking action, and that ripple has become a groundswell. In response to the explosive growth, about 60 communities — including Tulsa, Oklahoma; Kansas City, Missouri; and Mesquite, Texas, among others — have voted to temporarily or permanently restrict dollar stores, using zoning bylaws to do it. A community in Louisiana recently succeeded in blocking a development in court — a judge decided approving the project would infringe on his residents’ health, safety, and welfare. Cities like Detroit and Chicago are working on their own prohibitions now. Just one municipality has opted to ban them completely. One community said no — forever First to close in Stonecrest, Georgia, was Target. Best Buy followed. Kohl’s pulled out, and then the community lost a Kroger and a Publix grocery store. For a while, the main landmark driving down the interstate into town was a shelled-out hotel, half-finished and abandoned. In 2018, Walmart closed a Neighborhood Market location and a Sam’s Club in Stonecrest in the same week. Employees arrived at work to locked doors, and left teary-eyed. Dollar stores were eager to fill the void. By 2019, there were 20 in Stonecrest, Georgia, a city of ~60k mostly Black residents outside Atlanta, giving Stonecrest 3x as many stores per capita as the national average and double the average in the South. “We already had our fair share,” says Mayor Jazzmin Cobble. That same year, Stonecrest became the first city in the US to ban the stores outright. Stonecrest Mayor Jazzmin Cobble wants to see a grocery store in each of the city’s five districts. The decision in the middle-class city was wildly uncontroversial. At the city council meeting, even a local pro-development lawyer spoke up only to ensure gas stations wouldn’t be included. (He was representing one at the time.) “You’ve seen your last dollar store in Stonecrest,” declared then-Mayor Jason Lary. (Lary was later investigated by the FBI for embezzlement of the city’s covid relief funds and arrested.) The Hustle But stamping out dollar-store growth doesn’t mean grocery stores sprout in their place. Grocery stores don’t just appear in communities, they’re courted. Christian Green, who runs economic development for Stonecrest, oversees those pitches. “We’ve said, ‘These are the grocery stores we want to attract.’ And then we target them: we identify who the site selectors are in the industry that specifically do work with those businesses,” he says. A targeted approach means developing a relationship with them, and coming prepared with stats to make their business case: the area’s density, proximity to competition, traffic counts, and median household income. In 2021, the city delivered a victory, welcoming Lidl, a German discount grocery store. Dozens of customers turned out for the ribbon-cutting; one man toting a grocery store bag was so excited he lined up at 4:30am. Even without more dollar stores, attracting businesses has been a challenge for Stonecrest. Calls for a Starbucks have been unsuccessful, as have requests for Trader Joe’s and Whole Foods. Two of Stonecrest’s five districts are without a grocery store, which means ~20k residents have to travel miles outside their neighborhoods to access food. It’s not as simple as a community saying they want something. “Describing that to an everyday citizen who just wants to see a grocery store, that’s not always a positive conversation,” Cobble says. Meanwhile, a game of corporate chess, in the form of a messy patchwork of legal cases brought on by dollar stores, is playing out across the country. Backlash to the backlash The backlash to all this backlash? Litigation. Last year, residents in Michigan and Nebraska voiced such vocal opposition to the construction of a Dollar General that policymakers rejected the initial plans. Dollar General’s developers sued, and, faced with the prospect of hundreds of thousands of dollars in legal fees, the communities folded. The stores are now being built. Has anyone asked the customers who frequent these stores how they feel about banning them? Yes, it turns out. The first nationwide survey after the pandemic dollar-store boom was conducted by the Center for Science in the Public Interest, which released the results in October. Respondents — 750 lower-income dollar-store shoppers from across the country — didn’t want to see dollar stores banned. Rather, they relied on the chains for basic necessities. Other interesting findings: 82% felt dollar stores improved their community 81% wanted to see healthier options — from pantry staples to fruits and vegetables — at their local dollar stores “We were surprised at the overall positive perception,” says Karen Gardner, senior policy associate for CSPI. “Our statistics don’t support a national ban.” Smith, who leads research on dollar stores for the Institute of Local Self-Reliance, isn’t convinced. Even if dollar stores can offer healthier food at checkout, they’ll never replace a full-service grocery store, she says. “Not when a locally owned grocery store provides higher-paying jobs, better security, and a better variety of food.” Kennedy Smith researches the impact of dollar stores for the Institute of Local Self-Reliance. (Provided by Kennedy Smith) As discussion around the chains grows more heated, Smith now fields ~20 requests a week for more information from communities hoping to challenge discount stores. Prohibition mission What does a ban like Stonecrest’s actually change? Research from UCLA Anderson and the University of Toronto Mississauga found that one grocery store closes for every three new dollar stores that open. A new dollar store in the market means shoppers buy less fresh produce, particularly if they’re older, lower-income, belong to a minority group, or lack access to a car. The researchers also gamed out what markets would look like if the influx of dollar stores hadn’t happened at all beyond 2010, and found that the number of grocery stores in the communities they studied would have increased by 54%. Perhaps the restrictions’ greatest benefit has been creating space for imagination to thrive. In dollar stores’ absence, mobile grocery stores now drive across the rural South in RVs, and other operators like Neighborhood Grocery in Detroit and Farmacy Market in Webb, Mississippi, have bought farms to create their own supply chain and bypass chains’ aggressive purchasing tactics. Other communities, like North Tulsa, have eased regulations on urban gardening to encourage selling fresh produce. There’s no one-formula-fits-all — at least not without federal action, Smith says. “It’s a stopgap,” she says. “It’s a starting action to buy time to take a broader look at how people shape the kind of community they want.” Read more: The great dollar store backlash - The Hustle