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Why are dollar stores selling more groceries than Whole Foods?

Dollar stores getting stronger foothold in groceries market

Getty Images
Getty Images (Getty Images)

No fresh vegetables or fruit? No fresh meat?

That’s still no problem for dollar stores, which are expanding profits rapidly by selling groceries.

In fact, dollar stores are selling $10 billion more in groceries than Whole Foods, according to a report by the Institute for Local Self-Reliance, a nonprofit organization that highlights community development.


Most of the food that dollar stores sell is canned or processed, including items such as soup, tuna, cereal and microwaveable meals. Soft drinks and juices are also sold at dollar stores.

Dollar stores are doing so well because they've targeted customers who make low incomes and who live in rural or inner-city areas, according to Newsweek.

In fact, the success of dollar stores in some urban communities and small towns has forced traditional full-service grocery stores to close, according to the ILSR report.

Mostly known for good deals on crafts, school supplies, decorations, toiletries and other household items, dollar stores are now becoming a major player in an area they are not commonly known for: the groceries market. 

Going forward, whether that remains the case won't be the million dollar question, but simply, the "dollar" question.

Where do you shop for groceries most often? Leave your answer in the comments.

About the Author:

Keith is a member of Graham Media Group's Digital Content Team, which produces content for all the company's news websites.