Tony Talks Business
How Dollar Stores Make Money
A carton of Goldfish crackers at Dollar Tree works out to more per ounce than the same box at Target, and the CEO of the biggest chain has admitted it out loud. There are now more dollar stores in America than Walmart, Target, McDonald's and Starbucks combined, over 37,000 of them, making billions a year selling to the people with the least money to spend.
This is how dollar stores make money.
Chapters
- 0:00Intro
- 0:58The Goldfish that cost more than Target's
- 2:01It wasn't an accident, it was engineered
- 3:48Why "unit price" is a luxury metric
- 4:58Go where nobody else will (the Dollar General origin story)
- 7:56What's actually making the money (it's not the snacks)
- 8:51Dollar Tree breaks the dollar
- 10:18The billion-dollar shrink problem
- 11:35The Family Dollar disaster ($8.5B bought, $1B sold)
- 13:01The towns fighting back
- 14:00The customers nobody saw coming
- 15:18So that's how dollar stores make money
