[New York Diary] Middle-Class Americans Earning $80,000 Flock to the 'American Version of the 100-Won Shop'

Reporting Everyday Stories from New York
How Inflation Has Changed the Landscape
Dollar Tree and Dollar General Greatly Expand Fresh Food Offerings

It was during a trip to a small American city some time ago. After visiting a small alternative art gallery with an acquaintance, we took a short walk around and talked about how safe the neighborhood might be. It felt quite charming yet strangely bleak. Just as we finished that conversation, we noticed that 'Dollar General' and 'Dollar Tree' were located side by side only two blocks away. We both gave a wry smile and quickly turned back.

In the U.S., there is a certain prejudice?if not a stereotype?against dollar stores, which primarily sell low-cost daily necessities, often referred to as the "American version of the 100-won shop." Many of these stores are concentrated in low-income neighborhoods and areas with high crime rates, and are perceived to have relatively poor security. This is somewhat true. Even in New York City, dollar stores are mostly located in higher-crime areas such as East Harlem and the Bronx. Reports of incidents inside these stores have also been frequent across the country. Because of this, some Americans even avoid visiting dollar stores. Our hasty departure from the neighborhood upon spotting the nearby dollar stores was influenced by this perception.

However, the landscape surrounding dollar stores has definitely changed in recent years. The highest inflation in decades in the U.S. can be cited as a background factor. American consumers, tightening their belts due to soaring prices, are turning to relatively inexpensive dollar stores to save even a penny on living expenses.

According to a report released earlier this year by market research firm CoreSite Research, one in five Americans purchases groceries at dollar stores. While low-income groups remain the primary customers, the proportion of middle-class consumers, especially for groceries, is noticeably increasing. Mike Witynski, CEO of Dollar Tree, stated during a conference call announcing last year's annual results that "the majority of Dollar Tree's new customers are middle-class with an annual household income of at least $80,000." Discount retailers such as Five Below and TJX, which also emphasize low prices, significantly increased their number of stores in the U.S. last year. This contrasts with the weakness of offline stores due to the expansion of online e-commerce.

On the afternoon of the 20th, at the Midtown Manhattan dollar store 'Jack's 99 Cent,' we observed a crowd near the grocery section. Christina Chauni, a woman in her 30s who often stops by here on her way home from work, said, "Prices have risen so much that it's hard to find 99-cent items, but it's still much cheaper than supermarkets like Whole Foods." She added, "Since I visited last year, I have been very satisfied and often buy drinks, frozen foods, and cereals here." David, a store employee, shared the atmosphere, saying, "Although consumer goods are mainly sold, the number of people buying groceries has increased significantly since last summer."

Dollar stores themselves are also adapting to these changes. Since last year, they have increased refrigerators and freezers for fresh food storage and significantly expanded the proportion of groceries. The two major dollar store chains, Dollar General and Dollar Tree, plan to increase the number of remodeled stores by 11.4% and 25.6%, respectively, compared to the previous year. They are also considering expanding their product range to include health-related items.

However, persistent inflation continues to weigh heavily even on dollar stores. Despite the growing number of Americans turning to dollar stores, the outlook for their performance remains weak. In this era of high prices, finding products priced at just one dollar is becoming difficult. Moreover, the recent popularity of dollar stores recalls the rapid rise of 99-cent stores around the time of the 2008 global financial crisis. This can be read as another signal that a recession may be imminent.

This content was produced with the assistance of AI translation services.