I experienced this first hand maybe a year ago when I randomly walked into a dollar general to get something, their prices often times are pretty close to the "regular" versions of the product, but packaged specifically for dollar stores.

I get why people shop at them in rural places because that's the only shop within 10-20 miles but in cities it makes no sense. Had prices been 20-30% cheaper but in a smaller size it would still be a ripoff but an understandable one, but often times I saw products that were priced just 3-5% below their standard counterparts while giving you maybe 30%-50% of the product.

Every store has some stuff that is overpriced compared to peers and some stuff that is underpriced. Dollar stores make their money more on drastic understaffing (leading to the issue in the article) and national scale than they do on being a consistently worse value. They have the cheapest freeze dried strawberries by weight you can get anywhere other than making them yourself.

Same. My city has a Walmart, Publix, Food Lion, Kroger, and Aldi. Yet they keep building dollar stores, I think there's now 5 within 10 miles of my house. They all seem to do decent traffic, which baffles me. The stores are a mess, items disheveled everywhere, and rare to see more than a single person working. Really depressing places, I cannot figure out their appeal.