Dollar stores are thriving amid the pandemic, but their workers are among the lowest paid in the retail industry, according to a new report.
Among 25 major US retailers, Dollar General pays employees the least at $9.68 an hour on average, UBS said in a report that analyzed self-reported wages on Payscale. Dollar Tree and Dollar King follow closely behind at $10, and $10.11, respectively.
By comparison, Walmart pays employees $13.08 an hour on average per UBS. Target recently raised its minimum wage to $15 an hour.
Dollar General spokesperson Crystal Ghassemi declined to confirm the hourly wage, but said the company’s goal is to «pay competitive wages in the areas where we do business.»
Dollar General thrived during the COVID-19 pandemic as shoppers stocked up on cheap goods. Experts say the company’s strategy to open stores 40 miles from Walmart, typically in rural areas, paid off when Americans didn’t want to travel far distances to shop.
As a result of the pandemic- induced sales boom, Dollar General boasted a 27.6% quarterly increase in net sales this May, outpacing other dollar stores and big-box retailers like Walmart and Target.
While Dollar General is thriving, some employees say they face violence on the job. Recent reporting in CNN and ProPublica found dollar stores in general are prime targets for robberies and violent crimes due to their presence in «high-crime neighborhoods.»
One Dollar General employee recently sued the chain for $1 million after surviving three armed robberies between November 21, 2017 and November 9, 2018.
Business Insider reached out to Dollar King and Dollar Tree for additional comment.
