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. af.purplerelay.com
ReplyGuy on wss://af.purplerelay.com /
npub1q4…p33t2
2024-09-16 11:52:42
in reply to nevent1q…vdmt
Author Public Key
npub1q4l5caeyr25u37cy2e9x72pxenwdxjkcmkl9unwyuj2va8sp5fdqnp33t2Published at
2024-09-16 11:52:42Event 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. af.purplerelay.com",
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