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Photo by Ike Wilson
Frederick resident Sarah Holmes leaves Dollar General store after stocking up on food and household items Thursday. |
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Frederick resident Rose Truss frequents the dollar store, depending on what she's looking for, she said. Escalating prices however, will compel Truss and many others to prioritize the discount chains, she said."I go to Giant Eagle (supermarket) like everyone else," Truss said. "But the economy is eating us alive and gas prices aren't helping any. This is usually my first stop these days." Completing her shopping at Dollar General on West Patrick Street Thursday, Truss said one small pack of gravy mix at a supermarket costs more than a dollar compared to five packs for $2 at Dollar General. The fastest growing retail channel is the dollar store outlet, according to an ACNielsen report. Since 2000, the five major U.S. players in the channel -- Dollar General, Family Dollar, Dollar Tree, Fred's and 99 Cents Only -- have added more than 4,445 stores -- an increase of 44 percent. In addition, Family Dollar is planning to open 585 stores by August of this year, and Dollar General is looking to add 675 new stores -- including 20 larger Dollar General Market stores. The magnitude of this store growth will most certainly impact shopping trips in a number of retail channels, according to ACNielsen. Foot traffic into Dollar General seems to be growing, saleswoman Amber Thompson, said. "The things I ring up the most are canned goods, sodas and paper towels," Thompson said. Frederick resident Emily Sines said dollar stores are perfect for items such as game and baby shower gifts, small towels and basket bingo items. More important, Sines said, "I can take my four grandchildren into the store and it doesn't break me." Nancy Thomas accompanied her aunt to Dollar General Thursday. "She's only got so much money so we come here. It's hard nowadays, I tell you," Thomas said. Leaving Dollar General Thursday with bags of restaurant supplies, George Yim, manager of City Buffet in Frederick , railed against escalating prices which, he said are threatening his livelihood. "It's a very bad time for restaurants," Yim said. "The price of gas is affecting everything. Food prices are up by almost 150 percent. Even though he hasn't raised prices to cope with higher food costs, Yim said customers can hardly afford to pay the same rates he's charged for his all-you-can-eat buffet. "We don't want to raise prices because customers don't have money," Yim said. "Even with prices kept low, people can't afford to eat out." Middletown resident Robin Bevington was shopping for party supplies Thursday at Dollar Tree on South Jefferson Street, Frederick . "They have a pretty good selection of things here, why pay more somewhere else?" Bevington said. Sarah Holmes described herself as a dollar store regular. "If you can get it for $5 here and not pay $7 at Wal-Mart, that's two more dollars for the gas tank," Holmes said. "I've always liked to come to the dollar store. They have things some other stores don't have, and it's cheaper." Dollar General manager Donna Broughear said the store offers name-brand items even though people are pinching pennies. Location is key to a successful dollar store, says Dan Margles, vice president of Allied Systems Industries, the nation's largest developer of independently-owned Dollar Stores. Broughear believes Dollar General is ideally located -- in a busy shopping strip, next to a bus stop and within walking distance. "So we're saving people money two different ways: on gas and prices," Broughear said.
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