As Dollar General expands, local grocery stores feel the pinch

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DANBURY, Iowa (KCAU) – There are over 30,000 Dollar General and Dollar Tree stores in the U.S., nearly 250 of those are in Iowa

As more Dollar Generals and Dollar Trees make their way into towns of less than 20,000 people, Colbert’s Market in Danbury, Iowa is one of many feeling the effect.

Their store serves 800 to 1,000 customers each week. At the market, 3rd generation owner David Colbert says he’s noticing a change in customers, especially since a Dollar General popped up in a nearby community.

“They come into a community and peel off the gravy or skim the gravy off the products that don’t perish and have a higher markup and thus leaving the local grocery with having to prove services for the stuff that is perishable and it has to be more competitively priced,” said Colbert.

KCAU 9 reached out to Dollar General. They sent a statement, saying in part, “… We take a number of factors into consideration in selecting store sites, carefully evaluating each potential new store location to ensure we can continue to meet our customers’ price, value and selection needs…”

Dolar General also said they are involved in the communities they serve supporting literacy and education through the Dollar General Literacy Foundation.

Dollar General is reportedly looking to open 975 new stores throughout the 2019 fiscal year.

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