Missouri Consumers Embracing Affordable Dollar Stores & Clubs

Don't look now, but the dollar generalization of the heartland, as I like to call it, isn't stopping anytime soon. Here's why.

We see them everywhere: Dollar General and Dollar Tree stores. You can't go anywhere in West Central Missouri without bumping into one of them, especially Dollar General. There almost seems to be a ridiculous number of Dollar General stores in Sedalia and Warrensburg. Throw Dollar Tree into the mix and some other dollar stores, and there's no shortage of stores designed for the cost-conscious or cash-strapped consumer. Add Aldi and Walmart to the blend; Sedalia and Warrensburg have both. And getting a deal isn't that hard to do.

In a report on retail sales released last month, KMPG says retail sales, excluding the volatile vehicle sector, rose 0.4% in July. The real news, though, is where consumers were spending that cash. That can explain the proliferation of dollar stores in Missouri and across America.

KMPG says consumers spent where the price cuts were the greatest, at big-box discounters and online. Traditional department stores took it on the chin again. Grocery spending increased 1% during June and July as consumers shied from dining out.

It all boils down to consumers looking to save a buck, whether that's joining a warehouse club like Costco, shopping dollar stores like Dollar Tree and Dollar General, getting groceries at Aldi, or, yes, shopping at the #1 retailer in America, Walmart or online at Amazon.

Here in the heartland of Missouri, Chat GPT told me that warehouse clubs like Sam's Club and Costco are about 60 miles from Sedalia. So, in our neck of the woods, shoppers favor stores like Aldi and Dollar General, which offer great prices on everyday essentials and don't require a trip to Kansas City or Columbia.

That makes sense. Years ago, I was a Sam's Club member in Indiana. It was worth the membership for the discounted gasoline, tires, and essentials my small family could buy in bulk. Yet, in Lubbock, Texas, and now in West Central Missouri, the drive to Sam's or Costco for my small family's needs doesn't make sense.

Where might you get a better deal when Walmart is the big-dog store in these small towns? Places like Dollar General and Aldi. Especially if you're trying to feed, clothe, and care for two adults and two or three kids.

The bottom line is that consumers are spending but choosing to spend their money where they think it will go the furthest, more so than in the past. As long as that trend continues, expect Amazon and Walmart to continue to grow, and in small communities where Walmart's the big store, expect the dollar generalization to continue.