Showing posts with label retail. Show all posts
Showing posts with label retail. Show all posts

Wednesday, January 07, 2026

Dollar General settles multiple suits for $15 million. Suits claim the chain regularly overcharged customers.

Dollar General headquarters in Goodlettsville, Tenn.
(Wikipedia photo)
Dollar General, a company that promises affordable food and staples in communities with few options, agreed to a $15 million settlement after being accused of consistently charging higher prices at the register than the prices it displayed on shelves. Many rural and urban customers can apply for repayments, reports Barry Yeoman of The Guardian.

The settlement ends lawsuits in several states that claimed Dollar General "overcharged customers at many of its 20,000 U.S. stores," Yeoman writes. "Many of the stores are located in rural towns and low-income urban neighborhoods with limited retail."

The day before the $15 million settlement was announced, Dollar General announced it settled for $1.55 millions with the state of Pennsylvania to "resolve similar allegations," Yeoman adds. "The chain’s 900 Pennsylvania stores failed more than 40% of their pricing accuracy inspections between 2019 and 2023."

Provided the $15 million is approved by a New Jersey court in March, shoppers will be able to file a "claim award starting at $10 and rising to the full amount of the overpayment," Yeoman explains. Filers will need to provide documentation proving the overcharge, such as receipts or photos of receipts and shelving sale signs.

"Consumers who cannot supply documentation can still claim a $3 discount on one $10 purchase, available on certain days," Yeoman reports. "The company has denied wrongdoing in the cases."

Friday, September 05, 2025

Rural Assembly Everywhere 2025 is all about rural people and regions flourishing even when resources are limited

Rural Assembly Everywhere is less than two weeks away. 

It's time to rev your rural engines and sign up for the virtual Rural Assembly Everywhere event happening on Wednesday, Sept. 17, from 1 to 2:30 p.m., E.T.

Rural leaders, community members, advocates and allies are invited to join this free, virtual gathering. Register here.

Virtual participants will have access to all programming, speaker panels and real-time chat with rural leaders across the country. The event is broadcast live via Crowdcast, which allows participants to ask questions and engage in discussions with one another before and during the event. Find more details here.

Everywhere 2025 highlights this year's theme: "A Bigger Pie: Cultivating Abundance in a Time of Scarcity." Event conversations and resources will delve into actionable ways to shift scarcity mindsets, enabling more rural communities to continue growing with renewed and resilient spirits.

The Rural Assembly and Everywhere 2025 are part of the Center for Rural Strategies.

Tuesday, August 26, 2025

Cracker Barrel faces backlash after logo rebrand

The old logo was first used in 1977. 
(Cracker Barrel image)
Since its launch in 1977, Cracker Barrel's signature logo, with its rustic charm, bib-overall-clad farmer and barrel, has symbolized a cozy place where weary travelers could eat a hearty meal, shop in the old-timey store and hit the road refreshed. When the company released its logo update last week without the farmer or the barrel, an uproar ensued.

The chain replaced its nearly 50-year-old logo with a "streamlined version featuring just the chain’s name," reports Heather Haddon of The Wall Street Journal. "The move engulfed the restaurant in a culture-war firestorm, with commentators online and some customers accusing Cracker Barrel of eschewing its country charm and heritage for a sanitized image."

The heated dust-up has "shaved tens of millions of dollars from the public company’s market value, spawned calls for boycotts and risked the casual-dining chain’s turnaround plan," Haddon explains.

Cracker Barrel hasn't made any move to step back from the logo update, but released a statement saying, "We could’ve done a better job sharing who we are and who we’ll always be. . . .We know we won’t get everything right the first time, but we’ll keep testing, learning and listening to our guests and employees.”

The new logo is part of the company's 3-year rebranding plan aimed at addressing declining sales and mediocre scores by remodeling stores and updating menu options. Haddon reports, "After catering to retirees and families on road trips, Cracker Barrel now aspired to court younger guests."

Meanwhile, online forums have continued to push Cracker Barrel to ditch the new logo and store changes. Haddon adds, "Others wondered why the controversy was occurring in the first place."

Friday, July 25, 2025

Coca-Cola sweetened with cane sugar could be more expensive; corn farmers worry they'll be hurt by the changes

Soft drink companies use high-fructose corn syrup to
reduce production costs. (Photo by J. Yarema, Unsplash)
If Coca-Cola wants to eliminate high-fructose corn syrup in Coke and replace it with cane sugar, it will need to find cane sugar suppliers outside the U.S. because the country already faces a cane sugar shortage. Since cane sugar is more costly than high-fructose corn syrup, the switch would increase the cost of Coke while simultaneously hurting U.S. corn farmers.

"Each year, America consumes about 12.5 million tons of sugar, but produces only 4 million tons of cane sugar. The rest is made up by imports and sugar sourced from sugar beets," report Patrick Thomas and Laura Cooper for The Wall Street Journal. "The beverage industry relies heavily on high-fructose corn syrup as its sweetener of choice. Each year, more than 7 million tons are produced by mills that grind up corn to make sweeteners and other products."

Due to U.S. sugar production limits, if Coca-Cola shifts to cane sugar on a broader scale, it will have to import sugar "from countries such as Brazil and Mexico — countries that face Trump administration tariffs of 50% and 30%, respectively, on Aug. 1," the Journal reports.

Although the soda giant has agreed to produce some American Coke with cane sugar, the switch will increase its expenses. Ron Sterk, a senior editor at SOSland Publishing, an information provider for the ingredients industry in the U.S., told Reuters, "Food and beverage industries started to use corn syrup in the U.S. in the past because of costs. It is cheaper than sugar."

U.S. corn farmers rely on domestic corn syrup production to drive grain market prices. Reuters reports, "The Corn Refiners Association said the complete elimination of high fructose corn syrup from the U.S. food and beverage supply would cut corn prices by up to $.34 a bushel, resulting in a loss of $5.1 billion in farm revenue."

Tuesday, June 24, 2025

Rural communities that once enjoyed bustling shopping malls struggle to repurpose the failing properties

The Berkshire Mall in rural Lanesborough, Mass., once 
bustled with customers but has fallen into disrepair.
Rural communities that seemed lucky to have a big shopping mall two decades ago have watched the glory days of their mall fade. The communities are often left with a sprawling abandoned building, frustrated property owners and a town budget still reliant on mall property taxes.

The once-packed Berkshire Mall in Lanesborough, Mass. is a striking example of how small-town malls have declined and closed throughout the United States. "The 720,000-square-foot mall, which opened in 1988, has long been Lanesborough’s single largest taxpayer. . . . In its heyday, [it] was the place to go," reports Jim Zarroli of The New York Times. "Business had fallen off sharply by the mid-2010s. Big-box stores like JCPenney and Sears closed. . . . The movie theater went dark in 2019."

What to do with Berkshire Mall remains a problem. "As the mall sits unused, the town wants its owners, Boston-based JMJ Real Estate Holdings and its partners, to sell the property for redevelopment," Zarroli explains. "But the owners have refused, and the standoff has no end in sight."

The challenges of reinventing a mall space are more difficult and take longer in rural America. "In small towns like Lanesborough, malls are often the largest tax generator, and local officials can be reluctant to admit the big-revenue days are over, continuing to rely on that money," Zarroli writes. "They can also find themselves butting heads with mall owners, who may have different ideas about what should be done with the site."

Meanwhile, communities deal with a stretch of decaying buildings and an owner who often lives miles away. "In Maine, town officials sued the owner of the Bangor Mall, accusing it of failing to make basic repairs," Zarroli adds. "In Massachusetts, the parking lot is mostly empty. . . .Break-ins have been frequent, the police said."

The best bet is to have old mall properties repurposed or torn down, but there are obstacles. "It can take years for redevelopment to begin. In West Mifflin, Pa., near Pittsburgh, a sharp drop in business at the Century III Mall left schools, in particular, short of funds, and the owners refused to make even modest repairs, Mayor Chris Kelly said," Zarroli reports. "Century III closed in 2019 and is now being demolished. Kelly said the town was optimistic that it could redevelop the 50-acre site."

Wednesday, May 28, 2025

Buying only U.S.A.-made goods can be 'next to impossible,' but some Americans find ways to get close to the goal

Many items are no longer made in the U.S.A. (Adobe Stock photo)

Even when consumers want to buy purely American-made products, it can be tough, if not impossible, to get everything on the list. "Many Americans say they want to buy domestic products, but global supply chains built over decades of outsourcing have made it challenging," report Natasha Khan and Rachel Louise Ensign of The Wall Street Journal. "No matter how committed these shoppers are, some products just aren’t made-in-U.S.A."

Domestic-only shoppers are tenacious about their choices and often face uphill battles to get U.S.A.-made products. "Dianna Huff has been on a decade-long quest to buy only 'Made in America' goods," Khan and Ensign write. "She recalls crawling inside her fridge in search of a manufacturer’s label only to see the tiny words 'Made in Mexico,' and returning a bathroom scale because, despite the assurance that the company made products in its U.S. facilities, it didn’t."

Huff was able to purchase linens and socks made in the U.S.; however, "for things such as her phone, glasses and weed whacker, it was next to impossible," the Journal reports. "Manufacturers moved production overseas where labor costs were much lower, spurred in part by free-trade agreements."

While many Americans would prefer to purchase U.S.A.-made products, their higher costs can be a deterrent. Khan and Ensign add, "In a May Morning Consult survey of about 1,000 U.S. adults, more than half said they intentionally bought domestically produced goods at least sometimes, but only 11% of those who were willing to pay more for U.S. goods could stomach a price increase greater than 15%."

Scouring for American-made goods has become hobby for some folks. "Anne Collins took up buying domestic after she retired," the Journal reports. To help others, she founded a Facebook group that promotes not shopping in China. She's taught group members how to sleuth for hard to find domestic products, such as, "mops, foil pans and artificial flowers."

Friday, April 18, 2025

Americans will have to wait for egg prices to decrease; some are dyeing potatoes or onions instead

Dyeing Easter eggs is a tradition some families will
continue no matter the price of eggs. (Adobe Stock photo)
The price of a dozen eggs continues to defy gravity by going up and staying up, despite "a drop in wholesale prices and no egg farms having bird flu outbreaks," report Josh Funk and Dee-Ann Durbin of The Associated Press. "U.S. egg prices increased again last month to reach a new record-high of $6.23 per dozen despite President Donald Trump’s predictions" that prices would decline substantially. 

The continued spike in egg prices means, "businesses that rely on eggs might not get much immediate relief," AP reports. USDA Secretary Brooke Rollins dubbed Easter "the Super Bowl of eggs" and reiterated that it may take a while longer for the price of eggs consumers pay to tip downward and balance with the wholesale market. In 2024, Americans spent roughly $45 million on eggs for Easter.

University of Arkansas agricultural economist Jada Thompson "said the wholesale prices did not start dropping until mid-March, so there may not have been enough time for the average price for the month to decline," Funk and Durbin write. "And grocery stores may not have immediately passed on the lower prices."

Some areas of the country are seeing lower prices. Funk and Durbin explain, "At a Walmart in Richmond, California, a dozen eggs were $6.34. In Omaha, Nebraska, Walmart was selling eggs for $4.97 per dozen. California requires eggs sold to be cage-free; Nebraska doesn’t."

Myhometravels photo
In some areas of the country,
Americans are getting creative with their Easter dyeing choices. "Videos on how to dye marshmallows, potatoes and even onions have begun to circulate on social media and news websites," reports Korsha Wilson of The New York Times. " For the first time in [this farm's] 40-year history of the hunt, the eggs laid on the green grass of the farm will be made of plastic, filled with a coupon for a free ride on their carousel."

Friday, March 28, 2025

Canadian travelers boycott visits to U.S., and the loss of Canadian dollars could 'upend local economies.'

Fearful of problems at the U.S.-Canada border, many
Canadians have canceled U.S. travel.  (Adobe Stock photo)
In a response to U.S. annexation and tariff threats, many Canadians are boycotting U.S. travel and opting to spend their vacation dollars in other countries. "Canadians have long been the top international travelers to the U.S.," reports Allison Pohle of The Wall Street Journal. The loss of Canadian travel dollars "threatens to upend local economies across the U.S. . . . Even a 10% reduction in Canadian travel could mean $2 billion in lost spending and 14,000 job losses."

Craig Treulieb, a Canadian who planned a celebratory trip to the U.S. with his wife, serves as an example of how costly the loss of Canadian visitors can be. "They spent about $3,500 on flights, hotels, an Airbnb booking and a rental car, with plans to spend freely on food and excursions during the nearly two-week trip," Pohle writes. "The day after (former Prime Minister Justin) Trudeau told business leaders that (President Donald) Trump might be serious about annexing Canada, they canceled the trip. They will instead travel to British Columbia."

Canadians' concern over border delays has kept some from visiting the U.S. simply because they fear they won't be allowed home. "Canadians say Trump’s threats of annexation have infuriated and scared them, so much so that they won’t cross the border to spend time or money," Pohle reports. "Recent news about lengthy detentions for tourists and green-card holders has further deterred would-be travelers."

Air travel to the U.S. from Canada has also decreased. "Calgary-based WestJet says it has 'observed a shift in bookings from the U.S. to other sun destinations such as Mexico and the Caribbean among Canadian travelers,'" Pohle writes. "In tiny Whitefish, Mont., which is just 60 miles from the border of British Columbia, spending by Canadians was down 14% in January compared with a year ago."

Tuesday, March 18, 2025

Mexican produce suppliers and U.S. grocers tap dance around tariffs to keep aisles stocked and prices steady

Trade with Mexico keeps fresh produce on American
grocery store shelves. (Adobe Stock photo)
Supermarket produce aisles are suffering from a bad case of tariff whiplash, leaving suppliers juggling orders to avoid levies and grocers searching for ways to hold costs down. "Companies that import and distribute tomatoes, broccoli and other fruits and vegetables are canceling orders and sometimes replacing them within days," reports Patrick Thomas of The Wall Street Journal. "Supermarkets and retailers are monitoring consumers’ tolerance for higher prices. . . and considering bigger changes in their supply chains."

The Trump administration's see-saw approach to tariffs is "becoming a day-to-day factor for businesses that rely on cross-border commerce," Thomas writes. "American consumers expect to see fresh produce in stores year-round, and for avocados, broccoli, peppers and mangos, that means buying from Mexico and South American countries."

Despite the scale of Mexican produce sales to the United States -- worth roughly $20 billion annually -- suppliers operate with razor-thin profits, which leaves "little room for sellers to absorb higher costs without passing them along to customers," Thomas explains. "That leaves retailers and suppliers to determine whether consumers can stomach still-higher prices after inflation fatigue has eroded sales at supermarkets and restaurants over the past year."

To hold prices steady, grocers are reworking their supply chains. "Grocery giant Kroger said it is attempting to shift its purchasing of produce and other products to avoid the Trump administration’s tariffs, and ward off further price increases in its stores," Thomas reports. California grocer, Dynasty Farms is "considering moving its broccoli production to the U.S., where the company operates farms from California’s Salinas Valley to Scottsdale, Ariz."

Friday, January 03, 2025

With its $12.98 T-shirt, this company shows how retail apparel production can thrive in the U.S.

American Giant photo via The Wall Street Journal
It isn't fancy -- it's practical. It's sold at Walmart, but it's no import. It's a "Made in America" T-shirt woven with U.S. cotton sold by an American company making a tidy profit off its $12.98 tee, reports Suzanne Kapner of The Wall Street Journal. The T-shirt maker, American Giant, used the "heft" of Walmart's guaranteed sales contracts to garner enough investor support to make affordable "Made in the USA" apparel items possible.

American Giant's success wasn't spurred by tariffs on Chinese imports. Instead, it was Walmart's 2013 pledge to spend more on items that were made, grown or assembled in the U.S. that helped the company grow. Kapner explains, "In 2021, Walmart increased its goal and promised to spend billions more each year through 2030."

Bayard Winthrop, the chief executive of American Giant, said that "without Walmart acting as a backstop by committing to buy a predetermined number of shirts over time, American Giant’s suppliers wouldn’t have had the confidence to make the investments in automation and other upgrades that drove down production costs," Kapner writes. "The T-shirt project brought together what Winthrop has called 'strange bedfellows.'"

The T-shirt is made out of "yarn that is grown, spun, dyed and sewn in the U.S., contracting with suppliers mainly in the Southeast," Kapner reports. "It also owns a cutting and sewing facility in Middlesex, N.C., and is part owner in another sewing facility in Los Angeles, which opened specifically to make the Walmart T-shirts."

Even with its $12.98 price tag, American Giant's Walmart T-shirt competes against similar 100% cotton tees at half the price. American Giant differentiates itself with American emblems, which other apparel makers cannot use. Kapner explains, "Walmart bars suppliers from using the term 'American Made' or the American flag on products that aren’t made in the U.S."

So far, the $12.98 T-shirt boasts solid sales and "American Giant is making 100% cotton sweatshirts for Walmart that will sell for $38.98," Kapner reports. Despite the company's success, "it is unclear how much Americans care about buying products made in the U.S. . . . With the uptick of inflation in recent years, budget-minded shoppers have become even more price conscious."

Friday, December 13, 2024

Kroger-Albertsons merger blocked by judge who sided with Federal Trade Commission's anti-trust argument

The merger would have 'nearly doubled Kroger's
store count.' (Kroger and Albertsons graphics)

The planned $20 billion merger between Kroger and Albertsons was blocked by a federal judge who "agreed with the Federal Trade Commission’s argument that Kroger would become the dominant player in traditional supermarkets if allowed to add nearly 2,000 stores by taking over Albertsons," report Dave Michaels and Patrick Thomas of The Wall Street Journal. U.S. District Judge Adrienne Nelson "rejected the companies’ counterargument that selling 579 stores to C&S Wholesale Grocers would replace the lost competition."

The ruling is a victory for FTC Chair Lina Khan, "who has waged legal battles to stop megadeals rather than accept companies’ proposed fixes to address competition concerns," Michaels and Thomas write. Kroger and Albertsons executives marketed the deal as a necessary move to compete with Walmart and Amazon.

Nelson's ruling cited the fierce "head-to-head competition" between Kroger and Albertsons, which the proposed merger "would have removed." Michaels and Thomas write, "An FTC spokesman said the ruling 'protects competition in the grocery market, which will prevent prices from rising even more.'"

If the deal had succeeded, Kroger's store count would have almost doubled, "exceeding the scale of Walmart’s 3,500 supercenters," Michaels and Thomas add. "Rodney McMullen, Kroger’s longtime chief executive, had pledged to eventually invest $1 billion annually in lowering prices at the acquired Albertsons stores. . . . FTC attorneys argued the deal would only give Kroger a reason to increase prices by removing a competitor." 

Earlier in the year, Albertsons CEO Vivek Sankaran told a federal court that "if Albertsons’s sale to Kroger was blocked, the supermarket chain would consider closing stores or laying off workers," the Journal reports. "He said that while the company’s business is sound for now, in the next two to three years it could need to find another buyer."

Tuesday, December 03, 2024

Christmas tree growers are 'overcoming historic challenges' to provide live trees to holiday buyers

Fraser firs are a holiday tree
favorite. (Photo by W. Hicks)

Picking out a live Christmas tree, even with the family haggling that often comes with it, is how many Americans officially begin their holiday season. But this year, Christmas tree farmers had to work harder and with more creativity to get those trees ready for sale, reports Valerie Bauerlein of The Wall Street Journal. "Growers are having to overcome historic challenges to get them to the lots."

The difficulties Christmas tree farmers face aren't limited to growing perfectly shaped trees. They also face tree disease, labor shortages, plastic tree competitors, and "inflation on everything from seeds to tractors," Bauerlein writes. "And that was before Hurricane Helene wreaked havoc on the western part of North Carolina, which produces more Christmas trees than any state except Oregon."

The beloved Fraser fir tree crop grows primarily in western North Carolina where flooding "left 95 people dead, washed out roads and destroyed homes," Bauerlein adds. Tree farmer Waightstill Avery III lost a barn, equipment and "60,000 trees, a third of the total at family-owned Trinity Tree Company-Avery Farms. Many of the damaged trees were partially submerged by floodwater. Others were covered in clingy silt that resists washing. . . . Avery’s staff have been recovering what they can."

Besides dealing with unpredictable weather, most tree farmers are short-staffed, with many using migrant workers to shore up labor gaps, but that solution has become more difficult and expensive. Bauerlein reports, "Tree farmer Rusty Barr said the regulations around hiring foreign workers have become increasingly cumbersome. . . . The hourly rate he pays is increasing to more than $16 next year, another cost to absorb."

The industry also faces a smaller pool of customers as "baby boomers stop putting up live trees," Bauerlein explains. "There is increasingly stiff competition from China-made artificial trees, which have become easier to assemble and more lifelike, sometimes boasting scents like 'white winter fir.' . . . Such challenges have buffeted market size: The number of trees harvested in the U.S. has declined 30% since 2002."

Even as the industry looks at this obstacle-filled season, "the North Carolina Christmas Tree Association said there should be enough supply for anyone who wants a real tree this year, though growers say that buyers might need to adjust their expectations," Bauerlein adds. "Some church groups that flock to the mountains to stock their tree lots back home have been intentionally seeking out scraggly 'Charlie Brown' trees as a show of support."

Tuesday, November 26, 2024

Shopping rural helps small communities -- and it's a romp through one-of-a-kind gifts, practical gear and artful whimsy

Celebrating all the holidays in November and December can be more fun when shopping rural in-store or online. When gift-givers choose to buy from small-town businesses, they support local communities and get to spend their hard-earned gift-giving dollars on delightful, original items that can't be found at larger retailers. Below are just a few stops for readers to browse and hopefully, take time to enjoy the ingenuity, resourcefulness and craftsmanship rural businesses offer.

Mohr's art captures rich rural moments.
The art of Bonnie Mohr captures the beauty and spirit of life lived closer to nature. Whether it's cows, cats, old trucks, luscious landscapes or children playing in the snow, Mohr's work captures the unique perspective and warm wisdom of rural living. 

Inspired by the 1803 diary writings of midwife and tallow candle maker, Martha Ballard, 1803 Candles celebrate the nostalgia of simpler times. Like Ballard's candles, 1803 Candles are made by hand. Located in tiny, Waterman, Illinois, many of the company's employees are moms who work while their children are in school. 1803 Candles can be purchased online but can be discovered and smelled at a local shop with this handy finder.

Rural Cloth promotes rural as a lifestyle and strives to sell
high quality clothes that tout fashion and function.
Rural clothing styles are just as diverse as rural people, but for giftgivers seeking ranch, farm or outdoor life gear, the options start with flannel and go beyond. There's Rural Cloth for "those who live in small towns, like rodeos, bull riding, hunting, fishing, cold beer, backyard BBQs, and football." Duluth Trading is also a very rural pick. Headquartered in Mount Horeb, Wisconsin, the company is serious about rural Americans being comfortable and ready for anything. The company even has "Fire Hose Workwear" and heirloom gardening bib overalls. Find a local store here.

Shop Rural can supply ideas and inspiration for gift-giving budgets of all sizes. The site supports "Small Towns and Small Batches" for hand-picking gifts that are special and support local artisans. The options go from craft woodworking to whimsical gnome-shaped soaps made from goat milk. Shop Rural is for small-town businesses only, so there's no mass production and the site does not take commissions. Shop Rural is still growing and has artist listing packages from $2 to $8.

Bookshop.org makes supporting independent bookstores simple. Avid readers need books, and bookgivers can choose a favorite rural/local bookstore to receive the full profit from their Bookshop.org purchases. Many smaller bookstores also offer book purchases through their own websites, which are "powered" by Bookshop. In Hazard, Kentucky, a local bookstore called "Read Spotted Newt" has a website full of local offerings along with the option to order books directly from its site through Bookshop.

When perusing the web for outdoor adventure and nature lover gifts, Rural is Rad is a stop that offers an online database featuring local businesses in Colorado. The site has beanies, nature notebooks, hand-knitted hats and gloves, specialty ski apparel, hiking equipment and hiking guides and journals to go with it.

Shopping rural helps small communities -- and it's a romp through one-of-a-kind gifts, practical gear and artful whimsy

Celebrating all the holidays in November and December can be more fun when shopping rural in-store or online. When gift-givers choose to buy from small-town businesses, they support local communities and get to spend their hard-earned gift-giving dollars on delightful, original items that can't be found at larger retailers. Below are just a few stops for readers to browse and hopefully, take time to enjoy the ingenuity, resourcefulness and craftsmanship rural businesses offer.

When perusing the web for outdoor adventure and nature lover gifts, Rural is Rad is a stop that offers an online database featuring local businesses in Colorado. The site has beanies, nature notebooks, hand-knitted hats and gloves, specialty ski apparel, hiking equipment and hiking guides and journals to go with it.
Mohr's art captures rich rural moments.

The art of Bonnie Mohr captures the beauty and spirit of life lived closer to nature. Whether it's cows, cats, old trucks, luscious landscapes or children playing in the snow, Mohr's work captures the unique perspective and warm wisdom of rural living. 

Inspired by the 1803 diary writings of midwife and tallow candle maker, Martha Ballard, 1803 Candles celebrate the nostalgia of simpler times. Like Ballard's candles, 1803 Candles are made by hand. Located in tiny, Waterman, Illinois, many of the company's employees are moms who work while their children are in school. 1803 Candles can be purchased online but can be discovered and smelled at a local shop with this handy finder.

Rural Cloth promotes rural as a lifestyle and strives to sell
high quality clothes that tout fashion and function.
Rural clothing styles are just as diverse as rural people, but for giftgivers seeking ranch, farm or outdoor life gear, the options start with flannel and go beyond. There's Rural Cloth for "those who live in small towns, like rodeos, bull riding, hunting, fishing, cold beer, backyard BBQs, and football." Duluth Trading is also a very rural pick. Headquartered in Mount Horeb, Wisconsin, the company is serious about rural Americans being comfortable and ready for anything. The company even has "Fire Hose Workwear" and heirloom gardening bib overalls. Find a local store here.

Bookshop.org makes supporting independent bookstores simple. Avid readers need books, and bookgivers can choose a favorite rural/local bookstore to receive the full profit from their Bookshop.org purchases. Many smaller bookstores also offer book purchases through their own websites, which are "powered" by Bookshop. In Hazard, Kentucky, a local bookstore called "Read Spotted Newt" has a website full of local offerings along with the option to order books directly from its site through Bookshop.

Shop Rural can supply ideas and inspiration for gift-giving budgets of all sizes. The site supports "Small Towns and Small Batches" for hand-picking gifts that are special and support local artisans. The options go from craft woodworking to whimsical gnome-shaped soaps made from goat milk. Shop Rural is for small-town businesses only, so there's no mass production and the site does not take commissions. Shop Rural is still growing and has artist listing packages from $2 to $8.

Friday, October 25, 2024

Report: Chain drugstores get $23.55 to fill a blood pressure prescription, but a small drugstore gets only $1.51

Adams Family Pharmacy often loses money filling
prescriptions. (Photo by A. Miller, KFF Health News)

Even as independent pharmacists face low or no profits from medication sales, pharmacy middlemen reimbursements favor large drugstore chains. The Federal Trade Commission and several lawmakers are starting to take aim at prescription benefit managers' power and repayment practices.

"On Sept. 20, the FTC sued three of the largest PBMs. . .The lawsuit followed a scathing FTC report that said the 'dominant PBMs can often exercise significant control over which drugs are available, at what price, and which pharmacies patients can use to access their prescribed medications,'" reports Andy Miller of KFF Health News.

How PBMs dominate reimbursement in Georgia is a drastic example of smaller pharmacies being shorted. The American Pharmacy Cooperative, which represents independent pharmacies, "reviewed the price differential paid to a north Georgia pharmacy and nearby chain stores," Miller explains. "The analysis showed chains were paid well beyond the family business. For example, the chains received an average of nearly $54 for the antidepressant bupropion, while Bell’s Family Pharmacy in Tate, Georgia, got $5.54. . . . For a drug used to treat blood pressure, amlodipine, chain pharmacies received an average of $23.55, while Bell’s got $1.51. . . Bell’s Family Pharmacy closed earlier this year."

Nikki Bryant is a pharmacist and co-owner of Adams Family Pharmacy in rural Cuthbert, Georgia, who has worked to find creative ways to bolster the business' income because the pharmacy loses money. "Bryant and other independent pharmacists say they lose money filling certain prescriptions while reimbursements favor chain pharmacies like CVS that have corporate ties to pharmacy benefit managers," Miller adds. "Bryant said she can make more profit on cake and coffee than with many medications."

Some lawmakers are scrutinizing PBMs. "Members of both parties in Congress have tackled PBM reform," Miller reports. "House members recently introduced another proposal, known as the Pharmacists Fight Back Act, which supporters say would add transparency, limit costs for patients, ensure they get the benefit of drugmaker discounts, and protect their pharmacy choices."

Years of underpayments by PBMs to smaller pharmacies have disproportionately harmed rural communities by "accelerating closures of mom-and-pop pharmacies across the country, said the National Community Pharmacists Association," Miller reports. "The U.S. loses almost one such pharmacy a day, said Anne Cassity, a senior vice president of the association."

An Ohio county with big Amish community is becoming an economic hub. Economists say the model can be replicated.

Horse-drawn buggy in rural Holmes
County (Wikipedia photo)
Hard work, generosity and 'extreme networking,' are a few of the reasons the Amish community in Holmes County, Ohio, is thriving. The group's unique ways of supporting new businesses can serve as a model for other places looking to bolster economic mobility, reports Scott Calvert of The Wall Street Journal. "Between 2005 and 2019, average household income in Holmes County rose 24% for 27-year-olds raised in lower-income homes."

By some measures, Holmes should be struggling, but instead, it's becoming an economic hub. "Economists and local business leaders believe much of the progress stems from entrepreneurial growth fueled by cooperation and innovation, all buttressed by tight family and community ties," Calvert explains. "Mark Partridge, an Ohio State University economist who has studied Holmes County, points to an 'extreme networking effect,' where companies — and cousins — routinely help each other out."

Location of Holmes County
in Ohio (Wikipedia photo)
Experts point out that being Amish isn't necessary to replicate what's going on in Holmes County. Partridge told Calvert, "You can have a tight social network with effective social organizations, chambers of commerce, business organizations, and other kind of nonprofits.” Calvert reports, "While rural areas are often hampered by young talent moving away for better job opportunities, many Holmes County natives remain, held in part by the Amish tradition of staying near one’s community."

Sharing -- even with business competitors -- is a key ingredient in this community's success. Calvert writes, "Steve Miller, 31, started Grand Design Roofing in his 20s with a partner. Their Covid-era boom is over, he said, but business is still robust enough to sometimes overextend him and his six workers." Miller told Calvert, "If we’ve got plenty of jobs, I just go to my competitor and I give him a couple jobs. . . . I’m here so my employees can make a good, honest living. . . . I’m not here to collect all the wealth I can absolutely collect.”

Friday, October 18, 2024

Grocery store chains still use 'old-school' spying to out-price competitors. The practice has piqued antitrust interests.

Kroger ads provide competitors price information, but
"spies" also visit stores in person.
When big grocery stores battle for market share, most chains deploy old-timey spies who sleuth prices, quality and customer behaviors. The "old-school tactics are fueling the government’s case against Kroger-Albertsons deal," reports Patrick Thomas of The Wall Street Journal. "Grocery-store operators scrutinize the websites and promotions of rivals and send managers to walk through competitors’ stores to help establish what shoppers will pay for items."

In the case of the proposed $20 billion merger between Kroger and Albertsons, how grocery stores compete matters. Government antitrust lawyers seek to block the merger because grocery companies "commonly use rivals’ prices as a benchmark in setting their own," Thomas explains. "Federal Trade Commission attorneys argued that Kroger won’t have the same incentive to lower prices in its stores without Albertsons. Price checks can provide a ceiling for what grocers charge shoppers."

While antitrust lawyers say competition between big grocery store chains helps keep prices down, attorneys for Kroger say merging with Albertsons will enable them to compete with Walmart. Thomas adds, "Kroger and Albertsons also said they price check against a number of different competitors in a given area, including Walmart, Target, and Amazon.com’s Whole Foods Market, not just each other."

Still, the active competition between grocers demonstrates how prices can be affected by grocery store sleuthing. James McCann, the former chief executive of grocery chain Ahold USA, told Thomas, "It’s about the perception of price in your store. If you are expensive, a lot of customers will migrate to other places." Thomas reports, "McCann said it is common to send an employee across the street to a competitor three times a week to check prices on about 30 items."

Even though Walmart is the world's largest retailer, it also uses old-school spying to gain market knowledge, and in turn, the company uses that on-the-ground information to squeeze cheaper prices out of suppliers. Thomas adds, "The retailer also has regional managers visit competitors and its buyers pressure suppliers to offer lower wholesale prices if managers find items sold cheaper elsewhere, people familiar with the process said."

Tuesday, May 14, 2024

When dollar stores open in rural places, local independent grocers take more of a hit than their urban counterparts

Rural groceries are less likely to survive a dollar store opening.
(USDA graphic)
The local grocery has long been an important fixture in small-town life. But as dollar stores have popped up across the country, rural grocers have had a more difficult time staying open than their urban counterparts, report Keenan Marchesi, Sandro Steinbach, and Rigoberto A. Lopez for Amber Waves. "In 2015, independent grocers represented about half of the food retailers in 44 percent of U.S. counties. Leading up to 2015, however, dollar stores were becoming increasingly visible in rural counties, according to the USDA Economic Research Service research."

Researchers analyzed data from urban and rural grocers from 2000 to 2019 to determine how a new dollar store's entry affected independent grocery stores. Amber Waves reports, "Results showed that when a dollar store opened in a census tract [rural or urban], independent grocery retailers were 2.3% more likely, on average, to exit the market. Employment at independent grocery stores fell about 3.7%, and sales declined by 5.7%"

ERS chart
The data revealed a contrast in the economic impact of a dollar store opening in a rural area compared to an urban one. "For instance, the likelihood of an independent grocery store exiting a rural census tract after a new dollar store opened was 5%, about three times greater than in urban census tracts," Marchesi, Steinbach and Lopez explain. "Similarly, the decline in employment in rural tracts was about 2.5 times as large as in urban tracts, and the decline in sales was nearly double in rural census tracts."

The research also showed that a rural independent grocery store was less likely to rebound from the negative financial impact caused by a dollar store opening. By contrast, urban independent grocers were able to weather a dollar store's entry. Amber Waves reports, "This could reduce grocery store options in rural areas for the longer term. Dollar stores generally have a more limited selection of food products, focusing more on prepacked and processed foods." When a local rural grocery closes and doesn't return, residents' access to fresher, healthier food will at least in part be decided by what dollar stores choose to stock, which could ultimately hurt a community's overall health.

Tuesday, March 26, 2024

Rural residents often have limited retail choices for groceries and staples; when dollar stores close, they have even less

In some small towns, dollar stores add grocery and staple options in remote areas with few or no alternatives. In other cases, dollar stores were built right next to the local grocery store, slowly chipping away profits and eventually closing the local business. In both scenarios, rural residents rely on dollar stores for affordable staples. When they close, rural people have fewer options.

"Even though inflation is cooling, prices are still higher than they were pre-pandemic. They've hit low-income consumers the hardest, which is why many shop at dollar stores," report Bianca Facchinei and Emily Grossberg of Scripps News. "Dollar stores aren't just about saving money; sometimes, they're the only option." Consumer Reports deputy editor Brian Vines told Scripps News, "So many smaller mom-and-pop and independent stores have had to shutter because of competition from dollar stores, and those very communities now are faced with the very real threat of having no retail."

Last week, Dollar Tree said, "It plans to close 600 underperforming Family Dollar locations between now and June," Facchinei and Grossberg add. "An additional 370 Family Dollar and 30 Dollar Tree stores will close at the end of each store's current lease term."

Vines hopes the closures may offer opportunities for new growth. Vines told Scripps: "We're thinking about independent grocery stores or other folks who can really provide robust offerings. They see fertile ground now that those value retailers who've undercut them in the past aren't operating in the space."

Larger retailers used their dominance to push suppliers and squeeze competitors during pandemic, FTC report shows

Larger retailers used the pandemic to 'come
out ahead.' (Photo by S. Lee, Unsplash)
American grocery prices remain usually high, and many smaller-scale grocers still struggle to recover from pandemic setbacks. A new Federal Trade Commission report sheds some light on how larger retailers used their power to push suppliers to deliver to them first, which caused more struggles for smaller competitors and may be partially to blame for why grocery costs have remained high even as overall inflation has cooled.

"Federal regulators said large grocery chains used their size and scale to keep shelves stocked during the pandemic, edging out smaller rivals when most stores struggled with product shortages and distribution bottlenecks," reports Liz Young of The Wall Street Journal. Many larger retailers put "stricter delivery requirements into place and fined vendors that didn't comply. . . The demands led many suppliers to route more goods toward those retailers to avoid the fines."

FTC Chair Lina Khan told the Journal, "Dominant firms used this moment to come out ahead at the expense of their competitors and the communities they serve." Young reports, "The agency said revenue growth at grocers outpaced the cost increases many of them faced from suppliers, suggesting that higher profits 'warrant further inquiry by the commission and policymakers.'"

While supply bottlenecks thwarted smaller grocers during the pandemic, "Some of the largest U.S. retailers, including Walmart, Home Depot, Costco and Target, chartered their own cargo ships in 2021 to import goods and get around the chokepoints," Young writes. "Small grocers say the pandemic exacerbated their longtime struggles to compete with bigger retailers." Robert Buche, chief executive of South Dakota grocery chain G.F. Buche, told Young, "Covid just made it more obvious what's been happening for years with us independents."