NetSpend and Family Dollar Take a Bite Out of the Poor

The Austin Business Journal reports that NetSpend inks deal with Family Dollar. Netspend's debit cards are scheduled to be sold by Family Dollar nationally starting this month. Since I was going grocery shopping anyway, I stopped off at the Family Dollar nearest my house with the purpose of looking for the new debit cards and comparing prices for any identical items on my shopping list.

When I parked I noticed the following grouping of stores: Ace Cash Express, Family Dollar, RAC rent-a-center, Dollar Tree, and Title Bucks auto title loans. There were two employees in the Family Dollar, and they both greeted me. I found this both surprising and pleasant. There were displays at the front of the store with what is evidently a rotating selection of items for sale for a dollar. Most of the items in the remainder of the store cost more, but I found my usual brand of toothpaste for $1.00. The exact same tube was selling for $0.85 at my usual grocery store, however. A phone card for my pay-as-you-go cell phone was $19.99 as Family Dollar and $19.88 at my usual store. The only other identical item on my list that was stocked by both stores was my wife's favorite toilet paper, which was $8.50 at Family Dollar and $6.97 at my usual store. In summary, Family Dollar's higher prices fit the convenience store model, not a grocery store. This despite the fact that only two employees are present, the store is open for much shorter hours than most grocery stores, and there is none of the hassle of dealing with the Alcoholic Beverage Commission's licensing and regulations since they don't sell beer and wine.

I looked for the debit cards scheduled for this month, but didn't find them. Perhaps their roll out has started in another part of the metroplex or the country.

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