Americans Relying on Dollar Stores As Grocery Prices Surge

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Americans are relying on dollar stores to buy dinners and bulk items as grocery prices surge 12.2% and chains, including Walmart, say prices aren't coming down anytime soon: More than 61% of people say they are now living paycheck to paycheck


Grocery sales at discount stores spiked 71% between October 2021 and June 2022 while sales of the same items in grocery stores dropped 5%

The trends spells health concerns for cash strapped Americans, as only about 2,300 out of the more than 18,000 Dollar General locations carry fresh produce

Many discount store consumers are forced to depend on boxed, canned, and if they have them, frozen produce options

By ALEX OLIVEIRA and JAMES REINL, SOCIAL AFFAIRS CORRESPONDENT, FOR DAILYMAIL.COM



PUBLISHED: 14:48 EDT, 1 August 2022 | UPDATED: 22:12 EDT, 1 August 2022


Americans are increasingly relying on dollar stores to feed their families as inflation has driven grocery store prices up by as much as 12.2%.



Grocery sales at discount stores spiked 71% between October 2021 and June 2022, the analytics firm InMarket found, while sales of the same items in grocery stores dropped 5%.



The shift comes as 61% of Americans are living pay check to pay check, according to a LendingClub report, and affordability-branded chains like Walmart warn prices won't be dropping anytime soon.



While some dollar stores stock fresh produce, the majority of stores only supply boxed and canned food high in sugar, spelling trouble for the health of Americans' on top of their wallet woes.



The grocery trends are telling of the struggles which have plagued the US economy in recent months, and last Thursday's announcement of a second straight quarterly decline in economic turnover.



Experts blame everything from President Joe Biden's spending spree and supply chain snarl-ups to the war in Ukraine and sanctions on Russia roiling global food and energy markets.


Grocery sales at discount stores spiked 71% between October 2021 and June 2022, the analytics firm InMarket found, while sales of the same items in grocery stores dropped 5%



San Antonio resident Lily Penelope told The Wall Street Journal how they had begun relying on a local Dollar General for groceries, eating mostly canned chicken, peanut butter and vegetables from the store.



Penelope, 26, is unable to drive due to a disability and can no longer afford the cost of both food from the local grocery store and the cost of an Uber to get there. Previously the total for such a trip was about $120, they said, but since January that cost has nearly doubled.



'My health and the quality of my life has gone down,' Penelope said, 'I'm in a position where I'm having to choose between making meals I can afford and putting my health on the line.'



The Dollar General nearest Penelope doesn't carry fresh produce, a problem which many across the country face as they turn to dollar stores for relief.



Of the more than 18,000 Dollar General locations across the country, only about 2,300 carry fresh produce, something the store said they are working to improve but don't expect to see fulfilled for 'several years.'



'While Dollar General isn't a full-service grocer, we consider ourselves today's general store by providing nearby and affordable access to daily household essentials, including the components of a nutritious meal,' a spokesperson said. She added that the company expected to stock fresh produce at 10,000 locations over the coming years.


DailyMail.com researched prices of everyday items and calculated how much they would cost had inflation stayed at the Federal Reserve's target 2 percent rate — not the runaway hikes we've seen this past year — to find out how much extra consumers are currently paying


Customers shop at a Dollar Tree in Chicago. According to a spokesperson for the chain, 16,162 of their stores carry frozen produce, along with sugar-free groceries, whole wheat options, and milk and eggs



Until then, consumers will have to depend on their boxed, canned, and if they have them, frozen produce options. Though such products are less healthy, customers are willing to endure those drawbacks for the price.



'Everything in there is super-duper sweet,' 41-year-old Phoenix Kamlo told The Wall Street Journal, 'But it's nearby, and it's cheap.'



Dollar Tree has echoed Dollar General's sentiment that they never intended to be grocery stores for their customers, and are instead intended to supplement more robust grocery options.



According to a spokesperson for the chain, 16,162 of their stores carry frozen produce, along with sugar-free groceries, whole wheat options, and milk and eggs.

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