Updated Jan 12, 2019

The dollar store future

If you are one of the tens of millions of Amazon Prime members in the U.S., it’s easy to presume that online shopping will be future for everyone.

Expand chart
Data: Dollar General, U.S. Census Bureau; Chart: Harry Stevens/Axios

But over the next five years we will see an America that is divided by how and where we shop, with low income and rural Americans depending on discount outlets like Dollar General and Family Dollar, where the primary value proposition is not convenience but price — a fact that isn't likely to change.

  • In a new survey by Axios/SurveyMonkey, 71% of respondents with a household income of less than $50,000 a year said they preferred shopping in a store over online, compared to only 54% of those in households with income over $100,000.
  • "To shop [online] at Old Navy, you need to spend $50 for free shipping. And if you don't spend that much, there is a $5 shipping charge, which is half of one additional item.... It’s material for some consumers," Kimberly Greenberger, an analyst with Morgan Stanley, tells Axios.
  • Even Walmart has a $35 minimum for free delivery, a threshold that is too high for many consumers.

The bottom line: Online shopping will continue to grow in popularity with higher and middle-income shoppers, but won't compete with the flexibility and rock bottom prices of dollar stores.

Special report: The future of retail

Go deeper

Updated 3 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 3 a.m. ET: 6,898,613 — Total deaths: 399,832 — Total recoveries — 3,087,714Map.
  2. U.S.: Total confirmed cases as of 3 a.m. ET: 1,920,061 — Total deaths: 109,802 — Total recoveries: 500,849 — Total tested: 19,778,873Map.
  3. Public health: Why the pandemic is hitting minorities harder — Coronavirus curve rises in FloridaHow racism threatens the response to the pandemic Some people are drinking and inhaling cleaning products in attempt to fight the virus.
  4. Tech: The pandemic is accelerating next-generation disease diagnostics — Robotics looks to copy software-as-a-service model.
  5. Business: Budgets busted by coronavirus make it harder for cities to address inequality Sports, film production in California to resume June 12 after 3-month hiatus.
  6. Education: Students and teachers flunked remote learning.

George Floyd updates

Protesters gather north of Lafayette Square near the White House during a demonstration against racism and police brutality, in Washington, D.C. on Saturday evening. Photo: Jose Luis Magana/AFP via Getty Images

Tens of thousands of demonstrators have been rallying in cities across the U.S. and around the world to protest the killing of George Floyd. Huge crowds assembled in Washington, D.C., Philadelphia and Chicago for full-day events on Saturday.

Why it matters: Twelve days of nationwide protest in the U.S. has built pressure for states to make changes on what kind of force law enforcement can use on civilians and prompted officials to review police conduct. A memorial service was held for Floyd in Raeford, North Carolina, near where he was born. Gov. Roy Cooper ordered all flags to fly at half-staff to honor him until sunset.

Updated 7 hours ago - World

In photos: People around the world rally against racism

Despite a ban on large gatherings implemented in response to the coronavirus pandemic, protesters rally against racism in front of the American Embassy in Paris on June 6. Photo: Julien Mattia/Anadolu Agency via Getty Images

Tens of thousands of people have continued to rally in cities across the world against racism and show their support this week for U.S. demonstrators protesting the death in police custody of George Floyd.

Why it matters: The tense situation in the U.S. has brought the discussion of racism and discrimination onto the global stage at a time when most of the world is consumed by the novel coronavirus.