3 Reasons I Don't Shop at Dollar Stores

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KEY POINTS

  • Inflation has hit Americans in the wallet, and turning to dollar stores is one way to cope.
  • Product safety and long-term efficacy is an open question for some dollar store buys.
  • Dollar stores can have a negative impact on rural communities.

Does it feel as if everything is so much more expensive than it used to be? Well, you're not imagining it. We're still coping with higher inflation than usual (thankfully lower than it was during summer 2022, at least). As of the last Consumer Price Index Summary report, inflation was holding steady at 3.2% between October 2022 and October 2023. So if you're hoping to spend less money on your everyday purchases (and who among us isn't?), shopping at dollar stores seems like the natural choice.

Dollar stores are everywhere -- Statista reports that there were over 37,000 of them in the U.S. last year. Plus, shopping at dollar stores comes with some perks -- for example, they can be a great place to buy low-cost gift wrap and greeting cards (why spend more for something that will be thrown out in short order?).

If dollar store shopping works well for you and your personal finances, I absolutely get it, and think you should keep saving money in any way you can. But my own issues with dollar stores supersede my desire to save money. Here's why I avoid dollar stores.

1. I have concerns about product safety

Chances are good that you've been impacted by a product recall at least once in your life -- manufacturers and sellers implement these to get potentially unsafe products out of the hands of consumers. Earlier this year, Family Dollar undertook a recall of almost 300 drugs and other medical products that had been stored improperly and then sold at stores in almost two dozen states.

The fact that so many different products, from toothpastes to allergy medicines to painkillers, were affected is extremely concerning and points to bigger issues with how dollar stores handle their supply lines and distribution. (Some of this relates to staffing problems; see below for more on that.) Dollar stores certainly aren't the only retailers who occasionally have to recall products for safety issues, but it's definitely a reason I would never buy medication or similar items from a dollar store.

2. I don't like the way they operate

Dollar stores have a nasty habit of moving into rural areas of our country and undercutting local small businesses with their seemingly lower prices on essential items. In some places, they can even push out grocery stores, making dollar stores the only place to buy grocery items. And since the number and types of items sold are limited (particularly the selection of fresh produce, assuming it's available at all) at dollar stores, this can be extremely limiting for consumers.

Going beyond the impact on local businesses and the food supply, dollar stores have also gotten in trouble with the federal government for not providing a safe working environment for staff members. As recently covered by Last Week Tonight with John Oliver (as well as other outlets), dollar stores can be severely understaffed, terribly disorganized, and even beset by rats and violent criminals. I've lived and worked in small rural towns, and the residents there deserve better. In some places, locals are fighting back -- NPR reported that 50 communities in the U.S. have put limits on new dollar stores opening in their area.

3. I'd rather spend more upfront for items that last

While paying less for an item you buy is a more straightforward way to find savings, dollar stores don't always sell the highest quality of a given item. I'm fortunate that I am able to put a bigger charge on my credit card for a purchase and in exchange, have it last for longer. Batteries, tools, and toys are all examples of items best avoided from dollar stores because they just aren't as well made or long lasting as items you might pay more for from brands you've heard of.

I can buy an eight pack of AAA batteries from Dollar Tree for $1.25. But if those batteries end up leaking, or even just not lasting very long, I'll use them up more quickly than I would if I sprung for Duracells from Amazon. There are other ways for me to save on higher-quality items, such as waiting for holiday sales or buying in bulk, rather than buying them at dollar stores.

Personal finances are just that -- personal. So just because dollar store shopping isn't a fit for me doesn't mean it isn't for you. I do recommend taking the time to compare prices using product sizes, however, as this is one way you might be fooled into thinking dollar store prices are lower. That way, you'll be able to tell in real numbers whether you're saving money.

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