[q_andrew]

Dollar General is a mega corporation that can operate on an entirely different level than local stores. They pay their workers less and the profits go out of state. On a store-by-store basis though, Dollar general is a fragile establishment, management will not hesitate to abandon the location if they are spending too much money propping up the store. And the overhead for these stores is higher than it needs to be - they build way larger stores and parking lots than they actually need. The local dry goods store has grown only to the size that it requires, and those profits go towards its own survival. It provides cultural value, economic opportunities, and is more likely to improve the lives of people living nearby.

Strong towns (who made the article) is a grassroots nonprofit that finds concrete ways for US cities to curb the effects of urban sprawl. One of those ways is to acknowledge that inviting huge commercial ventures into your small local economy is like bringing a giant mammal to roam free on a small island nation. It's probably going to affect the ecosystem in ways that don't suit the environment.

[onlyrealcuzzo]

They can also operate at a loss until they drive out all competition, and then raise prices - so that you probably end up at the same prices as before (or worse) - but with a much worse quality product (i.e. how they achieve better margins).

[lief79]

Or open up more stores then the region can support, remove the local competition, and then close theirs stores as uncompetitive. The small town (population < 2000) my Mom grew up in is currently supporting their IGA as well as the Dollar Store, but my understanding is that they're in better shape then a lot of their small town neighbors.

One or two successful businesses makes a huge difference at that level. If something happened to their one large employer, a food factory, then they'd really be in trouble. The other businesses are restaurant sized at the largest.

[lotsofpulp]

> They pay their workers less and the profits go out of state.

Almost every local retail business I know of pays less than larger businesses, simply due to not meeting the 50 employee minimum that subjects businesses to a host of other labor laws such as ACA and FMLA.

[q_andrew]

You're right - what I should have said is that a local store owner is getting the direct profits of their labor. I admit that one of the short-term benefits of a big box store coming to town is that their lowest paid employees get more protections. This comes at the cost of being held at arms length from the actual power structure of the company and makes the dollar general's business practices more unsustainable.