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Economics in Brief: Dollar Stores Make Up Nearly Half of All New Store Openings This Year


About 45% of the 3,500 reported retail openings this year are Dollar General, Dollar Tree or Family Dollar, according to CNN.
Dollar store openings had been on the rise even before the pandemic, but economic fallout over the last year has exacerbated wealth inequality. And as Next City has previously reported, dollar stores proliferate in low-income neighborhoods where fresh produce and other healthy food access are scarce. According to a 2018 Institute for Local Self-Reliance report, “While dollar stores sometimes fill a need in cash-strapped communities, growing evidence suggests these stores are not merely a byproduct of economic distress. They’re a cause of it. In small towns and urban neighborhoods alike, dollar stores are triggering the closure of grocery stores, eliminating jobs, and further eroding the prospects of the vulnerable communities they target.” Pre-pandemic, cities such as Tulsa, Birmingham, New Orleans and Kansas City banned the opening of new dollar ....

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