Dollar Stores or equivalents are quite an interesting case study.
Given the fixed, increasing costs - among others like labour and cost of sales - Dollar Stores almost seem "magical" if they are still able to offer 90% of their catalogue for a dollar or less.
Purchasing power of parity is more likely at play, with cheaper than a dollar imports vs inflation purchase power of the dollar.
Ten years ago, $1 could get you maybe a pair of socks, but that same dollar is worth 75% less than ten years ago, but the store owner still needs to keep it "1 dollar"
Very interesting indeed.
Temu could be the "new model" of Dollar store, by eliminating property plant and equipment, they can really undercut brick and mortar.
Will look into it.
S!ayer
npub1eh…3mz4s
2024-09-16 11:52:41
Author Public Key
npub1ehkvx8rdjsrwnf7kkqr8gy42vcwe6vwgqdwrl4juqccp689v8wfqr3mz4sPublished at
2024-09-16 11:52:41Event JSON
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"content": "Dollar Stores or equivalents are quite an interesting case study.\n\nGiven the fixed, increasing costs - among others like labour and cost of sales - Dollar Stores almost seem \"magical\" if they are still able to offer 90% of their catalogue for a dollar or less.\n\nPurchasing power of parity is more likely at play, with cheaper than a dollar imports vs inflation purchase power of the dollar.\n\nTen years ago, $1 could get you maybe a pair of socks, but that same dollar is worth 75% less than ten years ago, but the store owner still needs to keep it \"1 dollar\"\n\nVery interesting indeed. \n\nTemu could be the \"new model\" of Dollar store, by eliminating property plant and equipment, they can really undercut brick and mortar. \n\nWill look into it. ",
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