What is ‘shrinkflation’ and how bad are dollar stores with doing it?
From Fortune Magazine:
“Shrinkflation,” the practice of reducing the size of products to avoid raising prices, is pervasive among retailers. Dollar stores like Dollar General and Dollar Tree have raised prices and decreased product sizes. A six-pack of Dove soap at Dollar General costs $8, while Target offers eight-packs at a lower cost per ounce. This practice affects low-income consumers who rely on dollar stores, leading to concerns about predatory pricing and food deserts. Customers are left frustrated, while the dollar stores’ profit margins remain high. However, despite shopper discontent, dollar stores continue to thrive, attracting customers with lower prices but ultimately costing them more in the long run.
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