A Dollar General store in Sunnyside, Pennsylvania (Photo via Flickr | CC-BY-SA 2.0)
The rural landscape is experiencing a significant impact from the growing number of dollar stores, which are affecting grocery stores and small businesses in those areas, according to recent research.
A study released by the U.S. Department of Agriculture (USDA) found that the presence of dollar stores in rural communities leads to a higher likelihood of closure for independent grocery stores. These effects are more pronounced in rural areas, where employment and sales at grocery stores decline significantly.
Research shows that dollar stores strategically target low-income and rural communities, aiming to capture consumer sales that may not be as easily accessible in those areas. The impact of a dollar store’s entry into a rural community is about three times greater than in urban areas, resulting in substantial sales and employment declines at rural grocery stores.
The proliferation of dollar stores is dominated by two major companies, Dollar General and Dollar Tree, which have expanded their presence across the country. Dollar General alone has added thousands of locations in recent years, solidifying its position as the largest retailer in the U.S.
While dollar stores can provide access to food in food deserts and contribute positively to communities through non-profit initiatives, the negative effects on local businesses, such as pharmacies, hardware stores, and pet stores, are also observed. The closure of rural grocery stores not only impacts local economies but also affects the social fabric of communities.
Efforts to address the challenges posed by dollar stores include communities passing ordinances to regulate their presence and working with county planning and zoning commissions to prevent further expansion. Supporting local grocery stores over larger chains can help retain profits within the community and sustain local jobs and economic development.
Despite the challenges faced by rural grocery stores from various factors, including dollar stores, there is an ongoing need to address the underlying issues to ensure the viability of these important community assets.
This article first appeared on The Daily Yonder and is republished here under a Creative Commons license.
The post Study: Dollar stores entry into rural communities often adds to rural grocery challenges appeared first on Daily Montanan.
