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Dollar store



A dollar store is a store that sells inexpensive items for one dollar or less each. A popular concept throughout the world, the stores usually sell everything from cleaning supplies to children's toys to food. In the United States, most, if not all, of these stores contain almost exclusively merchandise that is imported from overseas. There are many dollar stores that sell nothing but goods made in China.


 


Often the term "dollar store", used by the store, can be misleading. Some stores with the word "dollar" in the name, and even some claiming to be "dollar stores", have items that technically cost more (or less) than a dollar. The problem with the name is also compounded by sales taxes, which leads to taxable items costing the customer more than a dollar.


Separate from "everything costs $1 (or less)" stores, there are also stores featuring the word "Dollar" in their names, where the prices are in easy multiples of a dollar or 50 cents (for example, $2.50, $2 etc).


 


This concept is not new and likely originated with the five and ten or five and dime, a store where everything cost either five or ten cents. The originator of the concept may be Woolworths, which began in 1878 in Utica, New York. Other five and tens that existed in the USA included W.T. Grant, J.J. Newberry's, McCrory's, Kresge, McClellan's, and Ben Franklin Stores. Inflation eventually dictated that the stores were no longer able to sell any items for five or ten cents, and were then referred to as variety stores.


The most notable examples are the large retail chains Dollar Tree, Dollar General, and Family Dollar.


 


In economic terms, the pricing strategy of dollar stores is inefficient as some items may actually be sold elsewhere for less than a dollar. However, this is balanced by the marketing efficiencies of a single price structure and consumers accept potentially overpriced items. The pricing inefficiency becomes unacceptable at higher price points. Thus there are no "100 dollar stores" where all items sell for $100; consumers expect to pay the correct amount as inaccuracies result in significant dollar amounts.


European counterparts

This phenomenon also occurs in Europe. In Britain they are called pound shops. One popular chain is called either Poundland or Euroland, depending on whether in Britain or the Eurozone. Other 'Pound shops' include Everythings a £1! and Superpound. It is quite common to find products originally intended for sale in other markets, despite differences such as packaging written in foreign languages. For example, one may find Pepsi from Poland or the Czech Republic on sale in the UK. (See also Grey market).


 


- The Hema (Hollandse Eenheidsprijzen Maatschappij - Dutch Standard Pricing company) was originally a 'guilder' store, everything costing one gulden.


- In Norway there is Tier´n, which is a colloquialism for ten kroner (crowns), about $1.40.


- In Sweden there is Bubbeltian, called by some Tian, which is a colloquialism for ten kronor (crowns), about $1.25. Another chain that has been spreading in Sweden during the last seven years is Dollarstore[3], a chain where everything costs either 10, 20, 30, 40, 50 or 100 skr, which is supposed to roughly equal one, two, three, four, five or ten dollars. Despite the obvious similarity in name, it paradoxically does not seem to have any official connection with its American namesake, Dollarstore Corporation, and is limited solely to Sweden. Having a wider price range, these stores naturally also has a wider range of products than Bubbeltian, meaning more or less all of the aforementioned products excluding books and computer software. While it has only eleven stores yetsofar and has yet to reach any further south down the country than the town of Ludvika in the country's geographic middle, it is still one of the fastest growing low price chains in the country, after Netto and Lidl.


 


- In Spain there are Todo a 100 shops ("everything for 100 pesetas (0.60 €)"), although due to the introduction of the euro and inflation, most products cost a multiple of 0.60 or 1 euro. Most of these shops maintain their name in pesetas, and most of them have been renamed as Casi todo a 100 ("almost everything for 100 [pesetas]") or Todo a 100, 300, 500 y más ("everything for 100, 300, 500 or more").


 


- In Romania there are 38 000 lei shops. 38 000 ROL equals 3.80 RON (new Romania currency) and is the equivalent of about 1.20 euros. Excepting food, they sell about everything that can be squeezed at this price. Some stores also sell products at multiples of 3.80 lei.


 


- In Germany there is a chain of stores named "Pfennigland" .

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