Trenya Lewellen

The recent economy has taken its toll on many Americans. The closing of familiar businesses are surprising to many. I didn’t think I would ever see Ford Motors or Citi Banks be in financial trouble. However, the General Dollar and Family Dollar stores are booming. There is a new store on every corner doing quite well in the recession.

The targeting of poor neighborhoods has proven to be a financial success for the owners of the General Dollar stores. Store scouts find areas where there are leaking vehicles, low income housing and failing schools systems to open new stores. This is amazing that someone would capitalize on the poverty of another.

Here’s the twist, statistics shows that many six figures households have shopped at Dollar General Stores more often than the intended target groups.

So, the riches have started to shop amongst the rags! Studies show that the lower income brackets are purchasing more expensive brand products. Now, if you’re living in a lower income neighborhood, in a lower tax bracket, why are you purchasing more expensive brand names? The higher income tax brackets have been shopping in the lower income stores for years saving thousands of dollars. When calculated over many years, the Riches have capitalized off the rags, meanwhile the fantasy that the Rags to Riches would happen, has remained just that, a FANTASY.

Why do you think the General Dollar and Family Dollar stores really target only certain neighborhoods?

Photograph Credit:
Sabrina Segal