Tuesday, March 26, 2024

Rural residents often have limited retail choices for groceries and staples; when dollar stores close, they have even less

In some small towns, dollar stores add grocery and staple options in remote areas with few or no alternatives. In other cases, dollar stores were built right next to the local grocery store, slowly chipping away profits and eventually closing the local business. In both scenarios, rural residents rely on dollar stores for affordable staples. When they close, rural people have fewer options.

"Even though inflation is cooling, prices are still higher than they were pre-pandemic. They've hit low-income consumers the hardest, which is why many shop at dollar stores," report Bianca Facchinei and Emily Grossberg of Scripps News. "Dollar stores aren't just about saving money; sometimes, they're the only option." Consumer Reports deputy editor Brian Vines told Scripps News, "So many smaller mom-and-pop and independent stores have had to shutter because of competition from dollar stores, and those very communities now are faced with the very real threat of having no retail."

Last week, Dollar Tree said, "It plans to close 600 underperforming Family Dollar locations between now and June," Facchinei and Grossberg add. "An additional 370 Family Dollar and 30 Dollar Tree stores will close at the end of each store's current lease term."

Vines hopes the closures may offer opportunities for new growth. Vines told Scripps: "We're thinking about independent grocery stores or other folks who can really provide robust offerings. They see fertile ground now that those value retailers who've undercut them in the past aren't operating in the space."

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