News of Dollar General expanding to Wallowa County is cause for great concern. While these stores may offer convenience and affordability, their long-term impact on our community has far-reaching consequences that cannot be ignored.

A typical Dollar General captures over $2 million in sales every year. Those sales come out of the cash registers of existing small businesses. Dollar General’s ability to undercut prices due to its large-scale operations puts these small businesses at a severe disadvantage, ultimately leading to closures and job losses. Locally owned, independent businesses are the backbone of our community, providing unique products, personalized services and contributing significantly to the local economy. When you shop locally, 60 to 90 cents of every dollar you spend stays in the county.

In sharp contrast, Dollar General’s business model relies on a centralized distribution system, resulting in a significant portion of the revenue being funneled to regional or national headquarters. On average only 14 to 40 cents of every dollar spent at Dollar General will remain in the county, reducing the overall economic resilience and stability of our community.

What may appear to be a bargain at Dollar General is not. The chain has leveraged its purchasing power to coerce suppliers into providing special package sizes at lower prices while charging other retailers more and restricting the products available to them. These “cheater” packages create the appearance of a good deal when in reality consumers pay more on a per-ounce or per-item basis.

Dollar General has a track record of poor employment practices, deceptive advertising and pricing practices. It has been criticized for offering low wages, limited benefits, and precarious work conditions. This not only impacts the livelihoods of their employees but also puts additional strain on local social services and safety nets.

A 2020 study by the U.S. Government Accountability Office found that dollar store chains were among the companies with the greatest numbers of employees receiving SNAP and Medicaid benefits. While Dollar General has consistently paid workers some of the lowest hourly rates of any major retail corporation in the country, CEO Todd Vasos is compensated 935 times more than the median Dollar General employee, raking in over $16.5 million.

In a single year, 2,000 wage theft lawsuits were brought against Dollar General. And a quick search of active and settled lawsuits will reveal that the company’s problems persist. In January 2020 the Superior Court of California gave preliminary approval to a $9.95 million settlement involving more than 5,400 Dollar General store managers. Recently, Dollar General has been required to pay more than $8 million to settle claims for violations of the Fair Labor Standards Act, and the company has accrued more than $3 million in penalties from the U.S. Department of Labor’s Occupational Safety and Health Administration.

Rather than offering bargains and discounts, the chain is routinely overcharging consumers, leading attorney generals in Mississippi, Ohio, Arizona and Missouri to file lawsuits against Dollar General for deceptive pricing. In Missouri, the average overcharge was $2.71 on over 5,000 products, and price discrepancies were up to $6.50 per item.

While the chain profits, research has shown that communities continue to suffer as the presence of their stores has a negative impact on property values of the surrounding area ultimately affects homeowners and local tax revenues.

In more than 70 communities, people have organized and successfully blocked new dollar-store projects. More than 50 cities have enacted laws limiting dollar-store expansion. We must act quickly to stem the proliferation of these predatory merchants and their destructive effects on the residents, businesses and economy of Wallowa County.