From The Foundation for Economic Education
According to the US Department of Agriculture, at last count, 12.7 percent of US census tracts fell under the banner of “low-income, low-access.” This simply means a large portion of that tract’s population lives more than one mile from a food store in an urban area or more than ten miles from one in a rural area.
Dollar stores exist in these areas because of the lack of direct competition. Economically depressed areas often struggle to encourage new businesses, like full-service grocers, and struggle to maintain the ones currently operating. Dollar stores fill a very real need for families across this country. If they didn’t, they wouldn’t exist.
By banning dollar stores, especially without the assurance of a full-service grocer, governments are limiting families’ options, forcing them to travel farther and longer to purchase things like tuna, sugar, Pampers, or other name-brand, discount items.
Sarah Nassauer summed it up in her article about Dollar General:
“Dollar General is expanding because rural America is struggling. With its convenient locations for frugal shoppers, it has become one of the most profitable retailers in the U.S. and a lifeline for lower-income customers bypassed by other major chains.”
This statement rings true for both rural and urban low-income communities.
Banning or limiting dollar stores does not, in turn, usher in an age of full-service grocery stores in underserved neighborhoods. It just means fewer options for those who live there.
Read the whole article: