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99 Cents Only Stores in Dallas, Texas
F. W. Woolworth and S. S. Kresge stores on Lackawanna Avenue, in downtown Scranton, Pennsylvania. The two stores were often found near each other in downtown areas.
An art gallery in Seattle's International District preserves the façade and some features of Higo Variety Store, an independent Japanese-American five and ten.

A variety store, dollar store, or pound shop, historically also five and dime, is a retail store that sells general merchandise, such as apparel, auto parts, dry goods, toys, hardware, furniture, and a selection of groceries. It usually sells them at discounted prices, sometimes at one or several fixed price points, such as one dollar, or historically, five and ten cents. Variety stores, as a category, are different from general merchandise superstores, hypermarkets (such as those operated by Target and Walmart), warehouse clubs (such as Costco), grocery stores, or department stores.[1]

Dollar stores that sell food have been alleged to create food deserts: areas with limited access to affordable and healthy food. This is alleged to occur when dollar stores outcompete local businesses, and soon become some of the only grocery store–like businesses available in some areas.

Economics

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Pricing and margins

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Some items are offered at a considerable discount over other retailers, whereas others are at the same price point. There are two ways variety stores make a profit:

  • Buying and selling vast amounts of goods at heavily discounted prices provides a small profit margin multiplied by the sales volume.
  • Pricing many items at prices that are higher than regular retailers. These goods are commonly bought by consumers who perceive them to be bargains based on the heavy discounts on other items in the store. In the case of fixed price-point retailers, this can be achieved by reducing the package size.[2][3]

Variety stores with single price points buy products to fit those price points (while making a profit) that are:

Not all variety stores are "single price-point" stores, even if their names imply it. For example, in the United States, Dollar General and Family Dollar sell items at more or less than a dollar. Some stores also sell goods priced at multiples of the named price and, conversely, multiple items for the price. The discrepancy with the nominal price is also compounded if sales tax is added at the point of sale.

Supply

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In many countries, stock can be imported from others with lower variable costs, because of differences in wages, resource costs or taxation.[citation needed] Usually, goods are imported by a general importer and then sold to the stores wholesale.[disputed – discuss]

Another source of stock is overruns, surplus items and out-of-date food products. Real Deals, a regional dollar store in the Syracuse, New York area, is stocked almost entirely with surplus goods such as these.[4] The legality of selling out-of-date goods varies between jurisdictions: in general, most items (with a few exceptions, particularly certain perishable food items depending on the state) can be sold in the United States regardless of their sell-by date,[5] but in the United Kingdom it is illegal to sell goods after their "Use by" date.[6]

Demography

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Although some people[who?] may link variety stores with low-income areas, this is not always true. For example, Atherton, California has a variety store within its city limits, even though it has a median household income of nearly $185,000 a year.[7] Studies of food discounters in Great Britain show quite a varied demographic,[8] and 99p Stores reported an increase in higher-income customers after the 2008 financial crisis.[9]

Allegations of creating food deserts

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Dollar stores have been alleged by a number of studies, individuals, and organizations to proliferate food deserts: areas with limited access to healthy and affordable food.[10][11][12][13][14] Dollar stores are alleged to outcompete local grocery stores, and end up being one of the few options available for purchasing food in some communities.[15][13] Dollar Tree has disputed this claim; it claimed that in a number of cases it created food options in food deserts.[11] In 2023, Dollar Tree reportedly stopped selling eggs when the price of eggs increased.[13] In line with these allegations, a number of U.S. states have passed restrictions on where new dollar stores can be opened.[15]

By region

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Global chains

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Miniso is a Chinese variety store chain that specializes in household and consumer goods including cosmetics, stationery, toys, and kitchenware.[16] In 2016, the company's sales revenue reached $1.5 billion.[17] Miniso has expanded outside of the Chinese market and operates 1,800 stores in Asia, Europe, Oceania, Africa, North America, and South America.[18]

Africa

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In Egypt, a variety store may be called a £E2.5 shop.

In South Africa, the R5 store.

Asia

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100-yen at Kōnoike, Higashiōsaka

In Japan, 100-yen shops (百円ショップ hyaku-en shoppu or 百均 hyakkin) have proliferated since around 2001. This is considered an after-effect of a decade-long recession of the Japanese economy.[19] Despite the emphasis on value, however, some items, such as chocolate bars, may be priced higher than they are at other stores.

For a few years, 100-yen shops existed not as permanent stores, but as vendors under temporary, foldable tents. They were (and still are) typically found near the entrance areas of supermarkets.

A major player in 100-yen shops is the Daiso chain. The first store opened in 1991, and there are now around 2,400 stores in Japan. This number is increasing by around 40 stores per month. Daiso has also expanded into North America, Australia, Asia, and the Middle East.[20]

In China, ¥2 (or ¥3, depending on the area's economic prosperity) shops have become a common sight in most cities. In Hong Kong, major department stores have opened their own $10 shops (US$1.28) to compete in the market, and there are now "$8 shops" (US$1.02) and even "$2 shops" (US$0.26) competing at lower prices, especially in poorer communities. Low prices are helped by Hong Kong's lack of a sales tax and its access to the mainland.

In Taiwan, fixed price stores can be found in many locations, including night markets, regular shopping streets, regular market stalls, and department stores. Two typical price points are NT$39 and NT$49. Given that the retail environment in Taiwan is already highly competitive, it is not unusual to see such stores fail.

In India, US Dollar Store, founded in 2003, is a pioneer of single price stores. The merchandise for pilot stores was sent from America. As sales grew over the years with more than 200 operational stores in India, the merchandise is now imported from China, Indonesia, Thailand, Spain, Portugal, UK and various other countries as well as the US. US Dollar stores were founded by entrepreneur Gaurav Sahni, owner of Nanson Overseas Private Limited. Nanson, operated by Gaurav Sahni and his brother Gautam Sahni, has had an established sourcing and consolidation network for over two decades, with supply bases worldwide. Direct sourcing without intermediaries and stocking a large variety of merchandise as and when needed has given the company an advantage.

Variety store chains in Asia

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Names for variety stores in Asia

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Central America

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Variety stores in Guatemala include Dollar City.

Europe

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An Action store in La Louvière, Belgium
The interior of a one-euro shop in Amsterdam, Netherlands

European Union

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  • In Belgium, chains include Action, HEMA, and Zeeman.
  • In Denmark: Tiger, a pun on the word for the Danish ten-krone coin, opened in the mid-nineties in Copenhagen and has since spread to other countries
  • In France: Action, HEMA, Uniprix, M. 1-2-3. Zeeman
  • In Germany, there are ToBi (German: Total Billig, "Totally Inexpensive") stores where most items cost one or two Euro or less. Other chains include Action, EuroShop, HEMA, Mäc-Geiz (240 stores), Pfennigland, Pfennigpfeiffer (110 stores), TEDi (1400 stores across Europe), Thomas Philipps (200 stores), and Zeeman
  • In Greece: 300 (300 drachmas, €0.90)
  • In Hungary there are 100 forintos bolt ("100 forints store") stores, but they do not form a single chain, instead of being operated by small, independent companies.
  • In Ireland: EuroGiant, Dealz
  • In Italy: UPIM
  • In Luxembourg: HEMA, Zeeman
  • In Malta: Tal-Lira
  • In the Netherlands: HEMA chain started in the Netherlands, sold goods using standard prices of 10, 25 or 50 cents, and later also 75 and 100 cents. After World War II, this model could not be sustained and the standard pricing system was abandoned.[21] HEMA is the abbreviation of Hollandish standardized prices company (Dutch: Hollandse Eenheidsprijzen Maatschappij). The HEMA had some 500 Dutch stores in 2011 and also operates in Belgium, Germany, Luxembourg and France. Since 2016 the chain is expanding in to other European countries such as Spain and the United Kingdom. Other chains include Action, Big Bazar, Euroland, and Zeeman.
  • In Portugal there were Trezentos shops (300 escudos, €1.50), but with the introduction of the Euro currency, this designation is not used nowadays and the terms 'bazar' or 'euro store' are preferred. Chains include Eupoupo - Tudo a €0,99 ou €1,49
  • In Spain there are Todo a 100 shops ("everything for 100 pesetas" (€0.60)), although due to the introduction of the euro and inflation, most products cost a multiple of €0.60 or €1. Most of these shops maintain their name in pesetas, and most of them have been renamed as Casi todo a 100 ("almost everything for 100 [pesetas]"),[22] Todo a 100, 300, 500 y más ("everything for 100, 300, 500 or more") or Todo a un euro. Colloquially, the expression todo a 100 implies that something is either cheap, kitsch or low quality.[citation needed]
  • In Sweden: Bubbeltian, called by some Tian, a colloquialism for ten kronor, US$1.20. Another chain that has been spreading in Sweden during the last seven years is Dollarstore, a chain where everything costs either 10, 20, 30, 40, 50 and steps of 50 up to 500 kr.

Russia

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In Russia, Fix Price started selling all its items at 30 roubles and as the business grew, up to 55 roubles. It has now cancelled this practice and has become a typical discount store).

United Kingdom

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Marks & Spencer opened a stall in Kirkgate Market Leeds in 1884, proclaiming "Don’t ask the price, it’s a ’Penny". Woolworths opened its first store in the United Kingdom in 1909, when they were also colloquially known as "threepenny and sixpenny" stores, "3d and 6d" being displayed on the shops' frontages.[23][24] More modern counterparts include B&M, Boyes, Home Bargains, OneBeyond, Poundland and Poundstretcher.

Names for variety stores in Europe

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  • 1 milyoncu in Turkey
  • 100 forintos bolt in Hungary
  • 3,8 RON shop in Romania
  • Всичко по 1 лев in Bulgaria
  • Euro store, €2 store, etc. in the Eurozone
  • Euroshop or 1-Euro-Shop in Germany
  • Loja dos 300 in Portugal (300 pre-euro escudos = €1.5)
  • Magasin à prix unique (one price store) in France
  • Max20 (kroner) in Norway
  • Pound shop, 99p shop, etc. in the United Kingdom
  • Sve po 8/10/12 kuna in Croatia
  • Sve za 79/99/100 dinara (Everything for 79/99/100 dinars) in Serbia
  • Tal-Lira in Malta (lira was Malta's pre-euro currency)
  • Todo a 100, 20 duros and SuperCien in Spain (cien = 100 pre-euro pesetas = €0.60)
  • Wszystko za 5 złotych in Poland

North America

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Several terms redirect here. For the "Oswald the Lucky Rabbit" short film see Five and Dime, For the 1931 film, see Five and Ten. For the book, see Nickel and Dimed

According to IBISWorld, dollar stores have grown 43 percent since 1998 and have become a $56 billion industry. Colliers International claims there are more dollar stores than drug stores. With stores of other types closing in large numbers, dollar stores often replace other types of stores in shopping centers. They succeed partly because of impulse purchases.[25] The common term in North America for a small general merchandise store is general store.

US five and dime stores

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Walton's Five and Dime Store in Bentonville, Arkansas, the first store of what would eventually become Walmart.

Frank Winfield Woolworth had seen the success in Michigan and western New York of so-called nickel stores, where everything cost five cents (a nickel). On February 22, 1879, Woolworth opened his Great Five Cent Store in Utica, New York, which created the American institution of the "five and dime", and became the F. W. Woolworth Company.

There were many names for this type of store:

  • five and ten cent store, five and ten, five and dime (a dime is the name of a US ten-cent coin).[26]
  • dime store
  • 5, 10 & 25c stores[27]
  • five cent to one dollar stores[28]

Before Woolworth, the prevailing thought was that an entire store could not maintain itself with low-priced goods only, but with Woolworth's success, many others followed their lead.[29]

Well-known dime store companies included:[30]

Of these, only Ben Franklin continues to exist in this form, while Kresge became Kmart and Walton's became Walmart. Beginning around the 1960s, others tried the larger "discount store" format, such as TG&Y Family Centers, W. T. Grant, and Woolworth's Woolco stores.[citation needed]

With suburbanization in the 1950s and 1960s, Americans shopped more and more in malls rather than downtown shopping districts and although Newberry's and Woolworth's stores did open in the malls, starting around the 1970s, variety stores lost business to other retail formats such as office stores, low-price shoe chains, fabric stores, toy stores and discount drug stores such as Thrifty Drug Stores. Grocery stores and drug stores sold more and more candy.[31] The last US Woolworth's closed in 1997.[32] Newberry's was sold to McCrory, who maintained the brand, in 1972; McCrory itself went bankrupt in 1992 and all its brands disappeared in 2002.[33][34][35]

Dollar stores

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Interior of a Dollar Tree in Gillette, Wyoming

Starting in the late 1990s, dollar stores expanded enough to gain the attention of the national press. They were popular not only for their value but because freestanding smaller stores were located in small towns, downtowns, and across the cities and suburbs, they were often more convenient than mall stores.[36] They continued to grow and by 2019, for example, Dollar Tree had higher annual sales than Macy's.[37] Dollar and variety store revenue reached $77 billion in 2018.[38]

As of 2018, main dollar store chains in the U.S. were Dollar General, Dollar Tree,[39] (which owned Family Dollar[39] until 2025), the 99 Cents Only Stores, and Five Below. Increasing revenue has led to growth for dollar store chains: by 2018, Dollar Tree had 14,000 locations in the U.S., and its expansion continued; in 2019, Dollar General had 15,000 locations in the US, and its expansion continued; and Five Below had 745 stores.[40]

In Canada: A Buck or Two (163+), Dollarama (1,095),[41] Dollar Tree Canada (226),[39] Great Canadian Dollar Store (100+), Your Dollar Store With More (180+)

In Mexico: Waldo's Dollar Mart, PesoRama (JOi Dollar Plus stores)

Other chains in North America

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Names for variety stores in North America

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5 y 10 in San Juan, Puerto Rico in 1937
  • Dollar store, $1.25 store, 99-cent store, etc. in the United States and Canada plus other names. Dollar store is used predominantly, even when the maximum price is higher than one dollar. Some chains emphasize that the price is an even amount: $2, $5, etc., instead of having odd, "uneven" prices.
  • Dólar y Algo Extra, La Reina, Almacenes Caravana in Puerto Rico
  • dime store
  • Five and Dime
  • Five and Ten
  • Nickel and Dime
  • Nickel and Ten
  • 5 y 10 in Puerto Rico, and in Mexico (5 and 10 pesos, or 5 and ten U.S. cents in border cities) - incidentally, Cinco y Diez, meaning "Five and Ten" in Spanish, became an inner-suburban shopping district in Tijuana

Oceania

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Names for variety stores in Oceania

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South America

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In Argentina, variety stores are called todo por dos pesos (everything for 2 pesos).

Brazilians sometimes use the expression um e noventa e nove (R$ 1,99) to refer to cheap, low quality things or even people.

In Chile, they are called todo a mil (referring to the one thousand Chilean pesos banknote). They are commonly located in middle-class neighbourhoods where big retail stores don't usually venture and in small commercial districts like the ones in Santiago.

Variety stores in Colombia include Dollar City (Colombia version of Dollarama), D1, Ara, Miniso

In South America, variety stores may be known as:

  • Dolarazo (US$1.00) and Cincuentazo (US$0.50) in Ecuador
  • Loja de 1,99 (R$ 1,99 = US$1.07) in Brazil
  • Todo por 23 pesos in Uruguay (23 pesos = US$1)
  • Todo por dos Pesos in Argentina (1 peso = US$0.32)

See also

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References

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[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

Variety store

View on Grokipedia
from Grokipedia

A variety store is a retail establishment specializing in the sale of a broad assortment of low-priced, everyday , including essentials, toys, , , and small hardware items, often priced at fixed nominal amounts such as five or ten cents in its historical form or one dollar in contemporary iterations.
Pioneered in the United States during the late 19th century, the model was introduced by , who opened the first successful five-cent store in , on February 22, 1879, emphasizing self-service browsing and high-volume sales of inexpensive merchandise to generate profits through slim margins amplified by turnover rather than markup depth.
This format expanded rapidly, with chains like complementing Woolworth's by incorporating ten-cent pricing, fostering a sector that democratized access to diverse for working-class s amid industrialization and .
In the 20th century, inflation eroded fixed-cent pricing, leading to the evolution into modern dollar stores, exemplified by operators such as , whose origins trace to a 1950s variety outlet in , and which now maintain dominance through aggressive expansion and adaptation to discount-seeking behaviors in recessions and low-income areas.
While traditional five-and-dimes largely faded by the 1990s due to competition from supermarkets and big-box retailers, the variety store concept persists and thrives in dollar formats, underscoring its resilience via operational efficiency and appeal to price-sensitive demographics.

Definition and Characteristics

Core Operational Model

Variety stores employ a low-price, high-volume retail strategy, selling a broad assortment of inexpensive, everyday to drive frequent visits and impulse purchases for profitability. This model relies on thin profit margins per item offset by rapid and substantial sales quantities, typically achieved through bulk sourcing from wholesalers and manufacturers to minimize acquisition costs. Central to operations is standardized, fixed low pricing—historically five or ten cents per item in early five-and-dime formats, evolving to near-dollar thresholds in contemporary examples—which eliminates price negotiation, streamlines transactions, and appeals to budget-conscious shoppers seeking value without comparison . Stores maintain compact footprints of 5,000 to 10,000 square feet, reducing and utility expenses while enabling high foot traffic in urban or underserved locations. Inventory management emphasizes diversity over depth, stocking thousands of SKUs across categories like household supplies, personal care, snacks, , and seasonal novelties, with a focus on non-perishables to simplify and reduce waste. Minimal staffing, often limited to cashiers and basic stockers, supports layouts that encourage browsing and add-on sales, while cash-or-basic-credit policies historically curbed losses from non-payment. Profitability hinges on , including just-in-time replenishment to avoid overstock and data-driven assortment to match local demand, ensuring gross margins of 20-30% through cost controls rather than . This approach distinguishes variety stores by prioritizing accessibility and affordability, fostering among low- to middle-income consumers who value convenience over luxury or specialization.

Distinctions from Discount Retailers and Supermarkets

Variety stores maintain compact footprints, typically ranging from 5,000 to 10,000 square feet, enabling operation in high-density urban or neighborhood settings with a focus on quick, access to miscellaneous low-cost goods. In comparison, discount retailers employ expansive big-box formats exceeding 100,000 square feet, such as Supercenters averaging 178,000 square feet, which support high-volume inventory of branded products across deeper categories through in and . This scale allows discount chains to offer variable deep discounts on everyday essentials, including apparel and , whereas variety stores emphasize fixed-price-point items like sundries and novelties with shallower assortment depth to manage limited space. Supermarkets, averaging 42,453 square feet as of 2024, diverge further by dedicating over 80% of sales to perishable groceries, fresh , and related staples, often incorporating specialized fixtures like refrigerated cases absent in variety stores' dry-goods-oriented layouts. Variety stores, conversely, allocate minimal space to —typically under 20% of —prioritizing non-perishables such as supplies, , and seasonal trinkets for impulse buys rather than meal planning or bulk grocery procurement. These format differences reflect causal operational realities: variety stores thrive on localized and rapid of inexpensive, often imported merchandise, while supermarkets and discount retailers leverage centralized distribution for lower unit costs on staples, though at the expense of the eclectic, low-commitment browsing experience of variety outlets. The business models underscore these distinctions, with variety stores relying on higher markups (often 50% or more) on low-volume sales of closeout or generic items to sustain profitability, in contrast to discount retailers' razor-thin margins (under 5% on many goods) sustained by massive throughput. Supermarkets blend moderate margins on high-turnover perishables with promotional pricing, but their emphasis on fresh inventory turnover—averaging 12-15 times annually for produce—contrasts sharply with variety stores' stable, non-seasonal stock of durable goods. Such variances in sourcing and pricing strategies trace back to historical evolutions, where early 20th-century five-and-dime precursors prioritized diverse, nickel-to-dime curiosities over the volume efficiencies pioneered by mid-century discounters like Kmart and Walmart in 1962.

History

19th-Century Precursors

In the early decades of the , American retailing relied heavily on general stores, which stocked a diverse array of low-cost merchandise such as textiles, tools, foodstuffs, and sundries, often sourced from eastern wholesalers and sold to rural and communities. These establishments, evolving from colonial trading posts, operated without fixed prices, allowing haggling but providing one-stop access to variety goods that urban specialty shops could not match in breadth or affordability for isolated buyers. By stocking small, everyday items at markups sufficient for slim margins, general stores anticipated the diversity of later variety formats, though credit sales and predominated over cash-only low-price strategies. Mid-century shifts toward and industrialization introduced stores in growing cities, where merchants increasingly adopted fixed to handle higher volumes and reduce time, marking a departure from . These outlets expanded variety by importing cheap manufactured goods post-1840s, including notions like thread, buttons, and hardware, sold at marks rather than variable rates. Such practices, observed in stores employing future innovators like Frank Woolworth, highlighted the viability of unsold smallwares at rock-bottom levels—often pennies—to clear inventory, setting the stage for dedicated low-price outlets amid rising consumer demand for accessible miscellany. Peddlers and market stalls complemented these fixed-shop precursors, hawking inexpensive variety items or at periodic fairs, fostering habits of impulse buying cheap novelties without the overhead of permanent structures. By the 1870s, an influx of inexpensive European imports flooded wholesalers, enabling dry goods clerks to experiment with segregated low-price sections for trifles, directly influencing the cash-only, no-haggle model that Woolworth formalized in 1879. This convergence of diverse stocking, fixed marks, and surplus cheap goods in pre-variety stores underscored causal drivers like manufacturing scale and transport improvements, rather than mere cultural shifts, in paving the way for specialized variety retailing.

Early 20th-Century Foundations

The early 20th century witnessed the rapid expansion and consolidation of variety store chains in the United States and abroad, solidifying the business model of offering a wide array of low-priced merchandise. , the pioneer, grew from 59 stores in 1900 to over 1,000 by , incorporating outlets in the , , and the following its establishment in and in 1909. In , Woolworth consolidated 586 stores into a unified , enabling standardized operations and further growth. Competitor chains emerged and expanded during this period, emulating Woolworth's fixed-price, cash-only approach. The S.S. Kresge Company, founded in Detroit in 1899, proliferated to 85 stores by the early 1910s by selling housewares, clothing, and toys at five- and ten-cent prices. Similarly, J.J. Newberry opened its inaugural store in Stroudsburg, Pennsylvania, in 1911, initiating a chain that emphasized inexpensive variety goods for urban and working-class consumers. These developments reflected broader economic shifts, including and rising demand for affordable household items amid early industrial growth. Chains prioritized high-volume sales with slim margins, sourcing directly from manufacturers to maintain low costs, which distinguished variety stores from traditional general stores. By the , the model had proven resilient, setting the stage for further proliferation despite economic fluctuations.

Mid-20th-Century Expansion

The post-World War II economic boom, characterized by increased disposable income and , facilitated the continued expansion of variety store chains in the United States during the 1940s and 1950s. Consumers sought affordable , , and sundries, driving chains to open additional locations in growing urban and suburban areas. Major operators modernized store layouts, adopting models and expanding inventory beyond fixed low prices to include items up to one dollar, adapting to competitive pressures from . F.W. Woolworth Company, the pioneering chain, maintained a vast network, reaching approximately 2,500 stores across by the early , reflecting sustained growth from its pre-war base of over 2,000 outlets. Company, the second-largest variety chain, operated 701 U.S. stores in 1962, having grown from 742 locations by 1938 through incremental additions amid post-war recovery. also contributed to the sector's proliferation, with chains collectively operating thousands of outlets at their mid-century height, serving as community retail anchors. This era saw variety stores peak in cultural and economic influence before the advent of large-format discounters eroded their dominance, though expansion efforts included diversification into lunch counters and seasonal merchandise to boost foot traffic and sales. Individual entrepreneurs, such as , further exemplified the model's appeal by launching Walton's 5 & 10 Cent Store in , in 1951, capitalizing on local demand for inexpensive variety goods.

Late 20th to 21st-Century Evolution

The variety store model evolved significantly in the late 20th century with the rise of the dollar store format, which standardized pricing at one dollar per item to attract budget-conscious consumers amid economic pressures like inflation in the 1970s and 1980s. Chains such as 99 Cents Only Stores, founded in 1982 in Los Angeles, pioneered fixed low pricing just below a dollar, expanding to over 300 locations by the early 2000s while focusing on closeout merchandise and everyday essentials. Similarly, Dollar Tree, tracing its origins to a 1986 single-price retailer, merged operations in 1993 to form the modern chain, emphasizing variety in household goods, snacks, and seasonal items sold exclusively at $1. Into the , the sector experienced explosive growth, driven by rural and urban where traditional retailers had limited presence. By 2018, the dollar and variety store industry reached $77 billion in annual revenue, with major players like operating nearly 15,000 stores by 2020 through aggressive expansion of over 1,000 new locations annually in the 2010s. , established in 1954 but surging in the , reached about 8,000 stores before its 2015 acquisition by for $8.5 billion, reflecting consolidation trends amid competition from big-box retailers like . However, the 2020s brought challenges including rising operational costs, retail theft, and disruption, leading to retrenchment for some chains. announced the closure of all 371 locations in April 2024, citing unsustainable pressures from theft and inflation after four decades of operation. agreed in 2025 to divest to firms for $1 billion, a fraction of the acquisition price, due to underperformance and integration difficulties, while continued expansion but faced scrutiny over store saturation in low-income areas. Despite these setbacks, the format persisted by adapting with multi-price points above $1 and increased offerings to compete in retail.

Business Model

Pricing and Profit Margins

Variety stores traditionally operate on a low-price, high-volume model, most items at fixed nominal amounts such as or equivalent in to appeal to budget-conscious consumers seeking and affordability. This everyday low minimizes promotional discounts and fosters impulse purchases, with markups typically ranging from 30% to 50% on cost to maintain accessibility while covering slim operational overheads from small-format stores and limited staffing. In contemporary examples like , the model has evolved from a strict $1 —implemented since 1980—to a multi-price format introduced in , incorporating tiers such as $1.25, $1.50, $3, $5, and up to $7 or $10 for select higher-value items, allowing for optimized assortment without alienating core customers. , another major operator, maintains a broader spectrum with about 20% of merchandise at $1 but emphasizes value-oriented on everyday essentials, recently simplifying assortments by reducing SKUs to enhance . These adjustments reflect responses to and costs, preserving volume-driven sales over margin expansion. Profit margins in the sector remain thin due to the emphasis on turnover rather than per-unit gains, with gross margins for holding steady at 35.8% in fiscal 2024, unchanged from the prior year amid stable cost-of-sales rates around 64.2%. and reported gross margins of approximately 31% and 32% respectively in 2022, higher than many grocery chains owing to private-label sourcing and reduced shrinkage from compact , though net margins fluctuate with economic pressures—'s Q4 2024 net margin declined 16.55% year-over-year due to elevated expenses. Overall industry profitability hinges on rapid turns (often 4-6 times annually) and low costs, enabling net operating margins of 3-5% despite competitive that undercuts traditional retailers by 20-30% on comparable .

Sourcing and Inventory Management

Variety stores source merchandise primarily through direct imports of low-cost, often unbranded goods from manufacturers in , supplemented by purchases of closeouts, overstock, and surplus inventory from U.S. wholesalers. This strategy enables fixed low pricing across diverse categories like household essentials, snacks, and seasonal items, with chains like partnering with thousands of vendors for bulk acquisitions. , operating over 20,000 stores as of 2024, streamlines sourcing by reducing product variety and prioritizing high-velocity, consumable goods to align with rural and low-income customer demands. Inventory management in variety stores emphasizes just-in-time replenishment and to minimize holding costs amid thin profit margins of 20-30%. Chains utilize nightly point-of-sale polling to track and adjust levels, as practiced by to optimize distribution across its network. employs integrated systems like RELEX for automated and replenishment, reducing stockouts and overstock by analyzing patterns across 8,000+ locations. Recent efforts include SKU rationalization and AI tools to boost turnover efficiency, with estimating markdowns in valuation to account for potential . These practices support high-velocity operations, where fast-moving turn over multiple times annually to sustain viability in competitive discount retail.

Store Design and Customer Experience

Modern variety stores, particularly dollar store chains, utilize a grid layout consisting of parallel aisles flanked by gondola shelving to maximize product exposure within compact spaces typically measuring 7,000 to 10,000 square feet. This arrangement facilitates smooth customer traffic flow and positions high-margin impulse items, such as snacks and small household goods, at eye level and aisle ends. Planograms—standardized diagrams—dictate precise based on and , ensuring consistent layouts across locations to streamline restocking and enhance shopper familiarity. Fixtures emphasize functionality with durable metal shelves stacked densely from floor to ceiling, bright overhead lighting to illuminate diverse inventory, and minimal decorative elements to control costs while prioritizing accessibility. The centers on affordability and efficiency, with aisles enabling quick selection of everyday essentials like cleaning supplies, toiletries, and packaged foods without assisted . Clearly labeled categories and fixed low pricing foster a sense of value, though some shoppers report cluttered appearances; chains address this through optimized layouts that reduce navigation time and promote repeat visits. Surveys indicate 72% of customers expect improved environments, prompting investments in signage and cleanliness to elevate satisfaction amid economic pressures.

Economic and Social Impact

Benefits to Low-Income Consumers

Variety stores, exemplified by modern dollar store chains, deliver essential household items, cleaning supplies, and basic foodstuffs at prices typically under $2 per unit, allowing low-income households to extend limited budgets for daily necessities. These outlets stock a range of non-perishable goods and snacks, often at fixed low prices, which empirical data shows appeals disproportionately to lower-income shoppers facing constrained finances. In underserved rural regions, dollar stores have expanded access where full-service grocers are absent, with household expenditures at these stores rising from 2.5% in 2008 to 5.0% in 2020, marking the fastest growth among retail formats. The share of household calories derived from dollar store purchases nearly doubled to 6.5% in recent years, reflecting their role as a reliable, proximate source for caloric intake among low-income and rural families. As income levels decline, reliance on dollar stores for increases, underscoring their function in mitigating retail gaps. Economic modeling reveals positive welfare effects for low-income consumers from dollar store proliferation, driven by enhanced product variety, altered retail landscapes, and competitively priced characteristics that outperform alternatives in sparse markets. Low-income households directed 5.5% of grocery spending to dollar stores by 2019, up from 3.1% in 2006, indicating sustained value in affordability and over time. These stores' low overhead and efficient sourcing enable price points that preserve , particularly for those without vehicle access or in areas with limited competition.

Employment Generation

Variety store chains, particularly dollar stores in the United States, directly employ hundreds of thousands of workers, primarily in entry-level retail positions such as cashiers, associates, and clerks. , Inc., which encompasses both and brands operating over 15,000 stores, reported 214,710 total employees—including 64,434 full-time and 150,276 part-time—as of February 1, 2025, reflecting fiscal year 2024 data that built on prior expansion. Similarly, , with more than 20,000 stores across 48 states as of May 2025, maintains a scaled to support its operations, contributing to an industry total exceeding 400,000 jobs across major chains given the over 39,000 dollar stores nationwide. These positions often fill gaps in rural and low-income communities where traditional retail opportunities are limited, providing accessible with flexible hours suited to part-time workers. However, the quality and net economic impact of these jobs warrant scrutiny. Variety store typically features low wages—often near —and limited benefits, with high turnover rates due to demanding schedules and physical labor demands. Academic analyses indicate that while store openings generate direct jobs (typically 5-10 per location), the broader labor market effects are modest or negative, as dollar store expansion correlates with reduced at competing independent retailers. For instance, a 2023 study using U.S. Department of Agriculture data found that dollar store entry led to a 3.7% decline in at independent grocery stores, alongside a 5.7% drop, with rural areas experiencing amplified effects (up to 7.1% loss). Another econometric examination of Quarterly Census of and Wages data from 2004-2020 revealed minimal overall disruption to incumbent store viability but small negative effects on nearby urban retail exits, suggesting limited net job creation in saturated markets. Per-unit efficiency further tempers the employment generation narrative: dollar stores employ approximately 20% fewer workers per dollar of sales volume compared to traditional retailers, prioritizing lean operations and in stocking over labor-intensive service. This model sustains profitability amid low margins but constrains upward mobility, as most roles offer little advancement or skill development. In underserved regions, however, the influx can stabilize labor markets by anchoring basic retail access, though critics from organizations like the Institute for Local Self-Reliance argue profits largely exit communities via corporate headquarters rather than recirculating through higher-wage hires. thus portrays variety stores as generators of volume at the cost of depth, with causal impacts varying by locale—positive in job deserts, dilutive where displacing higher-employment alternatives.

Challenges for Competing Retailers

Variety stores, particularly dollar store chains such as and , challenge traditional retailers by offering low-priced staples and household goods in small-format locations that prioritize over breadth of selection. These outlets often operate with significantly lower overhead costs, including reduced needs and streamlined , enabling them to undercut prices on items like snacks, cleaning supplies, and basic groceries that overlap with offerings. This pricing strategy siphons sales volume from competitors, as evidenced by a 2023 analysis of ZIP code-level data, which found that dollar store entry correlates with a 5.7% decline in sales at nearby independent grocery stores. In rural and low-income areas, where larger supermarkets face due to thin margins and , variety stores exacerbate competitive pressures by filling voids with accessible but limited food options. A 2025 study of communities indicated that the presence of a dollar store increases the likelihood of local closure by 5%, attributing this to diverted on everyday essentials. Independent grocers, which often rely on higher-margin fresh and perishables not emphasized by variety stores, struggle to match these efficiencies, leading to reduced foot traffic and profitability; a report highlighted how dollar stores' low capital requirements allow rapid proliferation, crowding out full-service alternatives without equivalent community investments. While some analyses question strict —correlating proximity with closures but noting factors like pre-existing economic decline—the empirical pattern of sales leakage persists across datasets. Convenience stores and regional chains face analogous threats, as variety stores expand into non-food categories like and beverages, capturing impulse buys with aggressive promotions. Experts have described dollar stores as an "absolute competitive threat" to c-stores due to their scale—over 18,000 locations by 2023—and ability to absorb volume through high turnover rather than per-unit profits. Larger counter by enhancing loyalty programs and private labels, yet variety stores' focus on underserved markets sustains their edge, prompting ongoing adaptations like scanner investments or format shifts among incumbents. This dynamic underscores a broader retail evolution where low-cost models prioritize density and affordability, forcing competitors to differentiate on service or quality to retain viability.

Controversies

Food Access and Desert Allegations

Critics, including some urban planners and advocates, have alleged that the expansion of stores— a prominent subset of variety stores— contributes to food deserts by displacing full-service grocery stores and offering primarily processed, low-nutrient foods, thereby limiting access to affordable fresh produce in low-income communities. A 2023 study found that rural communities face approximately three times higher likelihood of local grocery closures following dollar store entry compared to urban areas, potentially perpetuating reliance on convenience-oriented retail with minimal healthy options. Assessments of dollar store inventories, such as a 2025 analysis in majority-Black neighborhoods, confirm a predominance of unhealthy items, with fresh produce often absent or limited, fostering obesogenic food environments. Empirical data, however, reveals a more nuanced role, with dollar stores serving as a primary at-home source for certain vulnerable groups, particularly non-Hispanic households in rural U.S. areas lacking traditional . A 2023 study using national household data indicated that dollar stores facilitate purchases in underserved rural regions, where they often represent the only viable retail option due to supermarkets' reluctance to operate amid thin profit margins. While purchases from these outlets skew toward less healthy items on average, a 2025 of expenditure surveys found no significant overall deterioration in dietary attributable to dollar store reliance, as such shopping constitutes a minor share of total budgets for most households. Causal factors underlying these dynamics emphasize economic realities over predatory intent: dollar stores proliferate in food deserts precisely because established grocers deem them unprofitable, providing caloric access where none previously existed, though at the expense of nutritional variety. In response to allegations, chains like have expanded fresh produce offerings in select locations since 2010, partnering with organizations such as to combat insecurity, yet scoping reviews note persistent gaps in healthy stock compared to conventional retailers. These findings underscore that while dollar stores may entrench suboptimal access in some contexts, they alleviate absolute in others, with broader improvements hinging on complementary policies rather than retail suppression.

Effects on Local Grocery Stores

The expansion of variety stores, particularly dollar store chains such as and , has been associated with increased competitive pressure on local independent grocery stores, leading to higher exit rates and reduced viability for these retailers. Empirical of U.S. retail data from 2000 to 2019 indicates that the entry of a dollar store into a raises the probability of an independent grocery retailer exiting the market by an average of 2.3 percent. This effect stems from variety stores' offerings of low-priced packaged groceries, snacks, and household essentials, which overlap significantly with the inventory of small grocers lacking the scale for comparable pricing. In rural areas, the impact is amplified due to thinner markets and limited alternatives, where a new dollar store opening correlates with a 5 percent higher likelihood of an independent grocery closure—nearly three times the urban rate. Independent rural grocers experience an average 10 percent decline in sales and a 7 percent reduction in employment following such entries, as variety stores capture demand for affordable staples without requiring the full-service model of traditional grocers. Studies confirm this competitive dynamic through establishment-level data, showing dollar store proliferation drives contraction among independents by eroding their in non-perishable goods and convenience items. Broader analyses reveal spatial effects, with dollar store openings linked to a substantial decline in the number of full-service grocers within a 2-mile radius, exacerbating challenges for remaining independents through intensified price competition and reduced foot traffic. Reduced-form evidence from retail expansion patterns since 2008 further demonstrates that variety stores compete directly with the grocery segment, contributing to net declines in local grocery establishment counts and without offsetting gains in overall retail . While chain supermarkets may absorb some displacement through adaptation, independent operators—often community anchors—face disproportionate risks of permanent closure, altering local retail landscapes toward discount formats.

Nutritional Quality of Offerings

The food offerings in variety stores, such as dollar stores, predominantly consist of shelf-stable processed items like canned soups, snacks, sugary cereals, and frozen meals, with limited availability of fresh fruits, , or lean proteins. These stores typically stock fewer perishable healthy options compared to , focusing instead on low-cost, high-calorie products that emphasize convenience and long . Empirical audits of dollar store inventories reveal that over 80% of packaged foods are classified as ultra-processed, high in added sugars, sodium, and refined carbohydrates, aligning with patterns observed in chains like and . Nutritional analyses of purchases from these outlets indicate lower overall healthfulness, with average diet quality scores—measured via tools like the Healthy Eating Index—reaching 38.4 for dollar store foods versus 49.7 for equivalents and 50.9 for club stores. Such scores reflect deficiencies in , vitamins, and whole grains, contributing to higher but poorer profiles. However, household-level data from national surveys show that while variety store reliance correlates with modestly reduced scores (e.g., 2-5 point drops in aggregate HEI), overall diet quality remains stable over time, as consumers offset these purchases with healthier selections from other retailers. Critics, including advocates, argue that the prevalence of nutrient-poor options in variety stores exacerbates diet-related issues like and in low-income areas, where these outlets often serve as primary sources amid limited access. Longitudinal studies, however, find no strong causal link to widespread dietary deterioration, attributing stability to compensatory behaviors such as multi-store shopping; for instance, dollar store calories comprised 6.5% of household totals by 2023 without proportional declines in fruit/vegetable intake. This discrepancy highlights tensions between in-store product audits—which consistently flag low healthy food variety—and broader consumption patterns, where tempers claims of direct harm. Peer-reviewed scoping reviews confirm the offerings' limitations but note that variety stores fill caloric gaps without uniquely driving poor outcomes when controlling for socioeconomic factors.

Regional Variations

North America

The variety store concept in originated in the United States during the late with the establishment of five-and-dime stores, which offered a wide range of low-priced merchandise typically priced at five or ten cents. launched his first successful store in , on February 22, 1879, after an initial failure in , introducing fixed low pricing and displays that revolutionized retail accessibility for working-class consumers. This model expanded rapidly, with Woolworth's chain growing to hundreds of locations by the early , influencing competitors like and inspiring future retail giants such as , whose founder gained early experience at a Ben Franklin variety store franchise. By the mid-20th century, the format evolved into modern dollar stores amid post-World War II economic shifts and , emphasizing even broader assortments of everyday goods at nominal prices. , founded as a wholesale operation in Scottsville, , in 1939 by J.L. Turner and his son , opened its inaugural retail store in , on June 1, 1955, focusing on essential items under one dollar to serve rural and underserved markets. Similarly, emerged in 1955 in , targeting urban low-income households with household goods, snacks, and apparel. These chains proliferated, with (originally Dollar Express, founded 1986) acquiring in 2015, consolidating market share. As of 2024, the United States hosts over 39,000 dollar stores, outnumbering traditional grocery outlets in many regions and concentrating in low-income and rural areas where they provide convenient access to basics like cleaning supplies, over-the-counter medications, and limited groceries. Dollar General alone operates 20,388 locations, primarily in the South and Midwest, employing a lean model with small footprints and minimal staffing to maintain low costs. In Canada, Dollarama, established in 1992 by Larry Rossy in Matane, Quebec, dominates with over 1,400 stores nationwide, offering items up to $5 and adapting to local preferences for imported novelties alongside staples. Mexico features fewer dedicated variety chains, with discount formats like Waldo's providing similar low-price assortments in urban centers, though supermarkets and convenience stores hold greater sway overall. North American variety stores characteristically stock diverse, non-perishable goods in compact spaces, appealing to budget-conscious shoppers amid and wage stagnation, though their expansion has drawn scrutiny for potentially displacing full-service retailers in food-scarce zones—a dynamic more pronounced in the U.S. rural than in Canada's urban-focused markets. Sales in the U.S. sector reached approximately $112 billion in , reflecting sustained growth despite economic pressures.

Europe

In Europe, variety stores typically function as non-food discounters offering a broad assortment of low-priced household goods, decorations, stationery, toys, and seasonal items, often with rapidly changing inventory to attract frequent visits. These outlets adapt the variety store model to local currencies and consumer preferences, such as fixed-price euro shops in continental Europe or pound shops in the United Kingdom, emphasizing affordability for budget-conscious shoppers amid varying economic conditions. Unlike grocery-focused discounters like Aldi or Lidl, European variety stores prioritize miscellaneous non-perishable products, fostering a treasure-hunt shopping experience. The Netherlands-based chain Action exemplifies this model, founded in 1993 as a small discounter and expanding to become Europe's fastest-growing non-food retailer with over 3,000 stores by June 2025 across multiple countries including Belgium, France, Germany, Italy, and Poland. Action maintains approximately 6,000 stock-keeping units per store, sourcing directly from manufacturers to keep prices low—typically under €5—and refreshing assortments weekly to drive repeat traffic. Its success stems from a lean operational strategy, including minimal store fittings and high inventory turnover, enabling it to serve urban and suburban areas effectively. In , TEDi leads the non-food discount variety segment, established in 2004 and operating around 3,000 stores in 15 European countries by the mid-2020s, with a focus on practical and novelty items like crafting supplies, kitchen utensils, and pet accessories. TEDi's assortment spans up to 15,000 products, priced competitively to appeal to families and impulse buyers, and its expansion reflects 's strong market for value-oriented retail amid stable on non-essentials. The chain's model supports dense store networks in high-traffic locations, contributing to its position as the top player in the German variety discount space. The features pound shops as a staple of the variety store landscape, with chains like , launched in 1991, and , opened in 1981, providing fixed-price bargains on an eclectic mix of goods from cleaning supplies to . These stores proliferated during economic pressures, such as post-2008 , offering accessible options in deprived areas where traditional retailers have withdrawn, though they face competition from larger discounters. Pound shops maintain viability through bulk sourcing and limited assortment depth, aligning with European trends toward accessible, low-commitment retail formats.
ChainFounding YearApproximate Stores (2025)Primary CountriesKey Focus
Action19933,000+Netherlands, Belgium, France, Germany, ItalyNon-food variety, weekly assortment changes
TEDi20043,000Germany, 14 others in EuropeHousehold, toys, decorations
Poundland1991HundredsUnited KingdomFixed £1-£3 items, mixed goods
European variety stores generally exhibit higher density in Western and Central regions, with slower penetration in Southern and Eastern markets due to regulatory hurdles and entrenched local commerce, yet they continue expanding via backing and integration for broader reach.

Asia and Oceania

In , the 100-yen shop model exemplifies variety stores, offering a broad assortment of , , and daily essentials at a fixed low price of 100 yen (approximately $0.65 USD as of 2023). Industries, founded in 1977 by Hirotake Yano as a single store in , pioneered this format and expanded to 4,139 domestic outlets by 2023, emphasizing high-volume sales of imported and manufactured items to maintain affordability. Similar chains like and Can Do have proliferated, with Japan's variety sector supporting over 6,000 such stores nationwide by the early 2020s, catering to budget-conscious consumers amid stagnant wages and . In , , established in 2013 by Ye Guofu, operates as a variety retailer blending Japanese-inspired aesthetics with low-cost Chinese manufacturing, stocking , , and apparel at prices under 10 yuan (about $1.40 USD). By 2023, had grown to thousands of outlets across , leveraging supply chain efficiencies from factories to undercut traditional retailers, though its rapid expansion has drawn scrutiny for product quality variability reported in consumer tests. In , entered in 2017 and operates over 500 stores by 2023, filling a gap in affordable non-food variety retail amid rising competition, while local chains like US Dollar Store mimic the model with fixed-price bins of imported gadgets and home goods. Across , hosts discount variety chains focused on clearance and imported bargains. The Reject Shop, launched in 1981 in Melbourne's by founders Ron Hall and John Shuster, grew to over 370 stores by 2023, specializing in household items, toys, and seasonal goods sourced from wholesalers, appealing to regional and low-income shoppers in suburban areas. has also established a foothold with outlets in major cities since the , importing Japanese stock to compete on novelty. In , fixed-price outlets like The $2 Shop and Sunny's Variety Stores, operational since the 1990s in locales such as Whangamata, offer similar low-end assortments including camping gear and snacks, with Sunny's expanding to five [North Island](/page/North Island) locations by 2023 to serve rural communities. These formats thrive in Oceania's dispersed populations, providing accessible alternatives to pricier supermarkets, though they face pressure from online discounters.

Africa and South America

In Africa, the variety store model is most formalized in , where economic pressures have driven demand for affordable general merchandise. The Crazy Store, operated by the Melbro Group, stands as the continent's largest discount variety chain, with its first outlet opening in 1995 and reaching over 400 stores by 2023 before hitting the 500-store milestone in October 2024. The chain stocks a broad assortment of low-priced items, including essentials, , apparel, stationery, and seasonal products, targeting value-driven consumers amid high unemployment and inflation rates exceeding 5% in recent years. Its success stems from aggressive pricing strategies and rapid , enabling adaptation to local constraints. Elsewhere in Africa, structured variety retail remains limited, often supplemented by informal township outlets like spaza shops in , which vend similar sundries but lack chain-scale operations. Emerging discount formats appear in ; for instance, Egypt's Kazyon, launched in 2014, runs over 1,100 outlets across 23 governorates, blending variety goods with groceries at hard-discount prices to serve urban low-income demographics. These models prioritize no-frills layouts and private-label products to undercut traditional retailers, though supply chain vulnerabilities in volatile regions hinder broader expansion. In , variety stores typically emphasize imported, fixed-price bargains amid fluctuating currencies and import dependencies, with hosting prominent examples. , established in 1929 in Rio de Janeiro, operates as a key discount variety retailer with approximately 1,700 physical locations as of late 2022, offering , apparel, products, and home furnishings at reduced markups. The chain's multi-category approach mirrors early 20th-century five-and-dime influences, sustaining relevance through integration despite a 2023 accounting scandal that temporarily disrupted operations. Smaller-scale "lojas de variedades" proliferate in Brazil's wholesale districts like Brás in , stocking cheap Chinese imports for resale, while Ecuador features "dolarazo" outlets selling sundry items for US$1 in its dollarized market, appealing to cost-sensitive households where average monthly incomes hover around $450. In , independent variety stores number in the hundreds, concentrated in provinces like (59 outlets) and Santa Fe (50), focusing on everyday essentials amid episodes peaking at 211% annually in 2023. Regional challenges, including import tariffs and economic instability, favor localized, agile operations over expansive chains, contrasting North American scale.

Recent Developments

Growth Trends Post-2020

The variety store sector, particularly dollar stores , demonstrated robust expansion after 2020, fueled by consumers shifting toward value-oriented retail amid and disruptions. The total number of U.S. dollar stores grew from about 34,000 in to over 39,000 by 2025, reflecting aggressive new store development by leading chains. Industry-wide sales for dollar and general merchandise stores reached an estimated $112 billion in 2024, a 38% rise from 2019, as shoppers prioritized low-cost household essentials, snacks, and consumables over higher-margin alternatives. The overall market size for dollar and variety stores stood at $119.2 billion in 2025, with a of 0.8% since 2020, underscoring resilience in a high- environment where real disposable incomes for lower-income households declined. Leading operators drove much of this footprint expansion through targeted openings in underserved rural and urban areas. , the largest chain, opened 800 new stores in 2024 and planned 725 more in 2025—netting around 600 additional locations after accounting for 96 closures—while remodeling thousands of existing sites to enhance capacity. , encompassing , reported steady increases, climbing from $25.50 billion in fiscal 2020 to $30.60 billion in fiscal 2023, supported by same-store sales gains of 3-8% annually as traffic and average basket sizes rose due to economic pressures. These chains benefited from operational efficiencies, such as simplified models that mitigated pandemic-era disruptions better than full-service grocers. Category-specific growth highlighted adaptive , with dollar store surging 10.6% year-over-year as of September 2025, capturing budget-conscious for dupes of premium products. Traffic metrics showed spikes, including 26.7% growth at in October of an unspecified recent year, though overall visitation stagnated for some operators in 2024 amid market saturation and easing behaviors. This trajectory aligns with broader post- trade-down effects, where empirical data on household spending patterns indicate sustained preference for variety stores' low-price model over traditional discount formats, despite critiques of limited product depth.

Adaptation to E-Commerce and Sustainability

In response to shifting consumer behaviors accelerated by the , major variety store chains such as and have expanded capabilities to complement their traditional brick-and-mortar model. launched an online storefront at dollartree.com, generating $93 million in in 2024 with projections for a 10-15% increase in 2025, focusing on sales of low-priced essentials. has pursued an strategy, incorporating options and digital tools like the DG Go! app, which enables in-store scanning, , and application of digital coupons to streamline purchases and boost convenience for rural and value-conscious shoppers. These adaptations aim to capture incremental sales from online channels, though remains a modest portion of overall , as the impulse-buy nature of variety favors physical visits. Sustainability efforts among variety store operators emphasize operational efficiencies and waste management, driven by regulatory pressures and cost-saving opportunities. Dollar Tree has committed to net-zero emissions by 2050, targeting a 50% reduction in Scope 1 and 2 emissions by fiscal year 2032 from a 2023 baseline, aligned with a 1.5°C warming scenario; the company invested $113.1 million in energy upgrades, equipping 99% of stores with LED lighting and energy management systems while procuring 55,203 MWh of clean energy. Waste diversion initiatives reduced total waste by 6% year-over-year and recycled 410,652 tons of materials, with expanded reuse programs at stores and distribution centers. Dollar General's environmental policy prioritizes footprint reduction through business-friendly practices, including energy-efficient store designs and supply chain optimizations outlined in its fiscal 2024 Serving Others Report, though quantifiable emissions targets are less explicitly detailed compared to peers. These measures reflect a pragmatic approach to sustainability, balancing low-margin operations with incremental environmental improvements amid scrutiny over the sector's reliance on high-volume imports and packaging.

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