I don’t know if you’ve ever driven across the (mostly) barren wasteland of western Kansas, but if you have then you know just how fully dollar stores dominate the landscape. It’s quite beautiful, the way you see a town in the distance made up of 4 or 5 houses, and the glorious concrete box of a Dollar General looming over them. This trend is common in many rural areas that are too small for other companies like Walmart or Target, and for good reason. Dollar stores tend to live up to their name, with much cheaper products than other chain stores, filling a niche needed by small towns that might not have many other options for food and other necessities. However, I feel the issues with this become clear when considering the effect that these stores have on individual grocery stores. 

According to the Economic Research Service (EDS) the appearance of dollar stores in a census tract decreased the number of independent stores by 5%, and decreased sales by 10%. In urban areas, the dropout rate of independent stores was three times less. Dollar stores’ ability to outcompete independent grocers comes from various factors, but the greatest is how cheap dollar stores are, largely due to their massive supply chains. This makes it significantly cheaper to ship their goods than it is for any independent business. Another comprehensive study by the EDS found that between 1990 and 2015, single-location grocery stores in rural areas have steadily trended down, with some spikes, while dollar stores have steadily increased their presence. 

Although dollar stores definitely have some benefits, as they are cheap, they also can limit access to fresh produce or healthier options, since they tend to focus on prepackaged and prepared foodstuffs. Without independent stores, there are less options and less freedom of choice for consumers to find healthy options, which can lead to detrimental health impacts in rural communities. According to Investigate Midwest, dollar stores don’t only put grocers out of business, but also impact pharmacies, hardware stores, and other local businesses. The majority of dollar stores in the US are owned by Dollar General, Dollar Tree, or Family Dollar, all of whom do extremely well out of their mildly predatory strategy, targeting low income areas and pushing out single-location stores. 

All in all, dollar stores clearly fulfill a vital need in many low-income areas. However, competition is also deeply important for any service, and massive conglomerates are not well known for their altruistic natures. Potential health impacts and the loss of locations where communities can gather and interact, such as a local grocery store, definitely can harm the communities that are served. Unfortunately, though, the upward trend of dollar stores throughout the US seems unlikely to slow or stop anytime soon.