Skip to content

GRAPHIC: Dollar stores impact rural grocery stores more than urban ones, USDA analysis shows

Grocery stores in urban and rural areas risk closure, drops in employment and declining sales when dollar stores enter the marketplace. Rural stores are hit hardest, according to USDA researchers.

Why you can trust Investigate Midwest /Content type: Explainer
GRAPHIC: Dollar stores impact rural grocery stores more than urban ones, USDA analysis shows
The interior of Market on the Hill in Mt. Pulaski, Illinois, on Jan. 25, 2022. The market opened up after the last grocery store in the town closed down. photo by Darrell Hoemann, Investigate Midwest

For years, rural areas have dealt with declining food options — fewer restaurants and grocery stores. One option that has popped in recent decades is the dollar store.

When dollar stores enter a marketplace, whether rural or urban, grocery stores are affected negatively, according to U.S. Department of Agriculture researchers who used proprietary data.

The number of stores, the number of employees and the amount of sales all decreased after dollar stores opened nearby, according to the analysis, which used data from 2000 to 2019.

Rural areas were most affected. For instance, rural grocery stores were almost three times as likely to close than those in urban areas, according to the analysis.

More in Data Harvest

See all

More from Sky Chadde, Investigate Midwest

See all

THANK YOU TO OUR FUNDERS

Reva & David Logan Foundation, Inasmuch Foundation, Lumpkin Family Foundation, Builders Vision Philanthropy, Gary Marx Journalism Fund, Kirkpatrick Foundation, Chicago Region Food System Fund, Illinois Food Movement Fund, GRACE Communications, Good Chaos, Donald W. Reynolds Journalism Institute, Fund for Investigative Journalism, Pulitzer Center for Crisis Reporting, Rural News Network, Google News Initiative, Data-Driven Reporting Project, Arnold Ventures.

We are proud to hold the Candid Seal of Transparency, demonstrating our commitment to openness and accountability in all that we do.

MEMBER OF