Are There Really More Dollar Stores Than Drugstores in the U.S.?

Time ^ | 12/12/2011 | Brad Tuttle

[SeekAndFind]

The family-run drugstore on Main Street has been dying for decades. Now, the big national chain pharmacies—which helped push those family operations to the brink of extinction—are being surpassed in terms of total locations by dollar stores. What does this say about how people shop nowadays? And about the state of the economy?

One of the hottest retail trends in recent years has been the rise of the dollar store. During a period when many retailers have struggled as a result of consumers scaling back, dollar stores boomed for obvious reasons—one way consumers cut expenses was by spending more time in dollar stores.

Surveys have shown that today’s shoppers are more likely to make purchases in dollar stores lately, and chains such as Dollar Tree, Dollar General, and Family Dollar have experienced outstanding sales growth as a result.

Riding the wave of newfound popularity and better-than-ever sales figures, dollar stores have naturally been expanding to new locations all over the country.

Now, according to a study by retail research firm Colliers International, dollar store locations outnumber drugstore locations in the U.S. Specifically, Colliers added up the number of locations for four national dollar store chains (Dollar General, Dollar Tree, Family Dollar, 99 Cents Only), and compared that figure to the total number of locations for the country’s three biggest drugstore chains (CVS, Rite Aid, Walgreens).

The tally, as of mid-2001, stood at 21,500 dollar stores vs. 19,700 drugstores.

[southernnorthcarolina]

Here's the key to the success of the dollar stores:

[ROCKLOBSTER]

The family-run drugstore on Main Street has been dying for decades...Now, the big national chain pharmacies—which helped push those family operations to the brink of extinction—are being surpassed in terms of total locations by dollar stores.

Maybe this will allow a resurgence of the family-run pharmacy.

[NH Red]

I believe they use to call them a “Five & Dime Store”.

[SampleMan]

What does it say? It is a reflection that rural American is depopulating, and small stores like Coast-to-Coast, Ace, and Ben Franklin, that used to be ubiquitous in the thousands of small towns (1-5k population) can't make it on half that population (and less than half the income levels).

Through the Midwest, towns sprung up in the late 1800’s every 6-8 miles, which provided shopping by horse or foot for the surrounding areas. Each town had a grocery and hardware. Now most of those towns are nothing more than clumps of houses that exist for no particular reason beyond having already been there. When things go away, they don't come back. People drive 20-30 miles to the bigger towns and do their shopping there.

Small quick shop gas stations might still be found, but they don't try to compete with Walmart. They just sell what you need “right now”.

[freedomfiter2]

They’ll soon be called $5 and $10 stores.

[BfloGuy]

Here's the key to the success of the dollar stores:

Now, that's funny stuff. I don't care what you say.

[tbw2]

Another decline in local pharmacies or lack of growth could be mail order prescriptions and the increase of 90 day supplies. Fewer visits to the pharmacy, less need for the pharmacy.

[Abathar]

I much prefer to shop at local pharmacies, but I can’t justify getting prescriptions filled there when it costs so much more than the big chains charge. I hate the fact, but dropping an extra $10-$20 on a $75 monthly bill is just not in our budget.

[sam_paine]

Maybe this will allow a resurgence of the family-run pharmacy.

Why would you suggest that? The Dollar/CVS/Walgreen/Walmart is driven by consumers who crave corporate crap. Large scale store brands for 25 cents cheaper than a national brand (don't even mention local produce.)

People want their $1 plastic juice container. What does that have to do with "family-run?" Who is the "family-run" purchasing manager going to buy products from? In what quantity? A dozen at a time or 5000 pallets of product?

And who is going to manage the OSHA complaints? FDA? Insurance for employees? EPA approved light bulbs. Is your family drugstore going to dispense morning after pills? If not, some feminazi group from DC might sue you.

For Pete's sake! I wish this "buy local/buy American" mantra would give itself a reality check instead of roaming around zombie like in search of brains. You'll pay more "smug money" to make it seem like your supporting local business? How much more? How often? All you're doing is paying more for the little guys to pay higher margin for lower volume to the same damn plastic manufacturers.

[sam_paine]

And just in time! Read Abathar’s #9.

[Dr. Bogus Pachysandra]

I live in an area that is a clump of villages between Cleveland and Akron, There are drugstores everywhere! There’s a CVS 2 blocks from my house. Another CVS 8 blocks North. A Giant Eagle Pharmacy 3 blocks to the East of the first CVS, with a Walgreen’s 3 blocks East of the Giant Eagle, and a Walmart Pharmacy in the shopping center across the street from Walgreen’s. Oh! And lest I forget, there’s a Mark’s pharmacy 6 blocks West of the first-mentioned CVS.
There’s only one Dollar Store. Lowe’s is also three blocks from Home Depot. I can’t figure out how they all stay in business! People aren’t going to Cleveland or Akron to shop! They’re coming to “Nordonia Hills!”

[deport]

If you don’t already have or use, look at the 90 plans. They can save a lot of money on meds that many use on a daily basis.

[Madam Theophilus]

Recently I had time to comparison shop for paper products for a large gathering. I found almost every item I needed at a cheaper price in Walmart or my local Food Lion than either the Dollar Store or the Dollar Tree.

The fact of the dollar stores is that they are just like other stores. Some items are priced lower to attract customers and they count on your picking up other items which are overpriced to make up the difference. If you don’t know prices, you can end up spending more by shopping indiscriminately at any one store.

[ROCKLOBSTER]

People want their $1 plastic juice container. What does that have to do with "family-run?" Who is the "family-run" purchasing manager going to buy products from? In what quantity? A dozen at a time or 5000 pallets of product? And who is going to manage the OSHA complaints? FDA? Insurance for employees? EPA approved light bulbs.

I was thinking maybe folks would go there to get their prescriptions filled.

[Red Badger]

Isnt Walmart ‘family-run’?........

[sam_paine]

I was thinking maybe folks would go there to get their prescriptions filled.

Prescriptions for what? "Headache powder" compounded by Norman Rockwell behind the counter, rinsed down with sarsaparilla?

Or Lipitor and Celebrex and Flomax?

If they can't make any money reselling onesy-twosy pitchers from rubbermaid instead of nationwise chains buying pallets of plastic crap, how are they going to compete with chain pharmacies (or grocery store chains with pharmacies) buying huge quantities from Pfizer and Glaxo?

It's not a choice to have mom-and-pop's. It's just reality that they cannot exist for long in the current market. The antiseptic impersonal chain store is what the marketplace has demanded.

[sam_paine]

You’re kidding, right?

[deport]

I was thinking maybe folks would go there to get their prescriptions filled.

---

That’s the problem in today’s market. There are too many other locations to get your perscriptions filled while you shop or by mail. The rise of the 90 day mail order process has taken a toll on the local prescription purchases from both big retail and chain drugs. The remaining items sold in a mom/pop drug store can be bought in many other retail locations, thus no need to go to them for those items.

[9YearLurker]

Ha ha!