Dollar stores are an interesting beast. There used to be a time when everything in the stores was only a dollar. Pricing changes, inflation, and other economic factors have changed that. While still cheaper than they could be, the prices at these stores are often connected with generic brands or smaller quantities of an item. So you may not be getting something cheaper than you would elsewhere anyway, which is one of the ways these stores survive. As it turns out, there might be something even more nefarious at foot, according to the State of Missouri.
The Lawsuit
In 2023, the midwestern state filed a lawsuit against Dollar General following an investigation. Inspectors went to various Dollar General locations across the state and looked at how items were priced. They compared the price of the items on the shelf to the price they rang up with at the register. The inspectors noticed a disturbing trend. Frequently, items rang up at a higher price at the register than they were marked for rin the aisles. Sometimes these markups were minimal, in the realm of cents, but those add up.
Deputy Attorney General Jeremiah Morgan gave very clear remarks on this. “Some people might say, well, it’s just, it’s a few cents, right? $0.10, $0.15. But you take that across just one store. Then you take it across hundreds of stores. and you’re talking about millions of dollars every year that consumers are being overcharged for products that they anticipated, or was represented to them, should have been cheaper, and was not.”
Dollar General’s Reponse
In return, Dollar General has stated that they believe their customers “knowingly and intelligently” shop. Also, price discrepancies can be easily remedied by declining to purchase incorrectly marked items. While that is true, that’s only an accurate statement if the customer notices the price difference. One could argue that it’s not up to the client to have to notice this. The prices should be consistent from aisle to register.
It may not be the case that Dollar General is deliberately doing this either. These stores, as personal experience can attest to, are notoriously understaffed. Your own encounters may vary on this of course. From our own perspective though, Dollar General stores can be very disorganized and unkempt. The lack of staffing would make it difficult for anyone to keep an accurate check of price variations. If this is the primary culprit behind price differences, it still speaks to problems with the chain of stores. Better staffing could create a better experience all around.
A Potential Outcome
These kind of lawsuits aren’t new. Other states such as Ohio, Pennsylvania, and Vermont have also brought Dollar General to court. Settlements were reached in each one and it’s not hard to imagine that happening here either. Maybe the state will be more aggressive and want to see an actual verdict. The trial starts in July so there’s still time for things to settle out. Whichever way it turns, we’ll let you know as the case continues.
