When it comes to the U.S. economic barometer, it may make people laugh dumbly, but it is actually a discount merchandise store represented by a dollar store. But it does make sense to think about it, on the one hand, the boom in discount stores reflects

When it comes to the U.S. economic barometer, it may make people laugh dumbly, but it is actually a discount merchandise store represented by a dollar store.

On the one hand, the prosperity of discount stores reflects the real operating conditions of the social economy, as well as the real living conditions of the people at the bottom; on the other hand, the huge sales of goods in demand in dollar stores also reflect the real appearance of inflation.

In other words, if the social economy is in a downturn, the business of consumers who are strapped for dollar stores will explode, and the profits of dollar stores will also increase significantly.

But in the past year, there has been an extremely unusual phenomenon in dollar stores in the United States.

Take Dollar general, the largest dollar store giant in the United States, for example, their turnover in the second quarter increased by 2.4% year-on-year, exceeding $10 billion, the company's best performance in the past decade, but its net profit plummeted by 47%, which is miserable.

Another dollar store giant, Dollar tree, also saw its turnover increase by 5.4% and its profit fell by 24%.

According to the American Retail Association, this situation that divides business managers comes from two points: first, under the malicious competition of Chinese e-commerce companies at low prices, dollar stores have to sacrifice profits to ensure sales, and second, the U.S. supply chain transfer strategy has greatly increased the cost of small goods and reduced the competitiveness of retailers.

The impact of this external and internal impact, the US dollar store obviously can't withstand it, and it is estimated that punitive policies against Chinese e-commerce will soon be introduced.