A recent study from the University of Florida has some interesting findings about dollar stores and food access. Researchers looked into whether opening a dollar store affects grocery availability in different neighborhoods.
Published in the American Journal of Agricultural Economics, the study aimed to answer a simple question: Do dollar stores reduce food access when they open nearby? The findings show that, in some cases, the answer is yes.
In urban neighborhoods with only one grocery store, the arrival of a dollar store can actually decrease food access. Areas with larger Black populations, limited vehicle access, high public transportation reliance, and high poverty rates are particularly affected, according to Conner Mullally, an associate professor involved in the study.
The number of dollar stores has soared since the 2000s, leading some cities to limit their growth due to concerns about food access. The study was sparked by these worries and sought to find out if they were justified.
Using machine learning and data from 2006 to 2020, the researchers analyzed various factors, including demographics and retail options. They found that in 14% of urban areas with just one grocery store, opening a dollar store led to a noticeable decline in food access. Chuck Grigsby-Calage, another study author, noted that while rural areas were also impacted, the effects were less pronounced than in urban settings.
Mullally adds that the overall impact is small in most areas. However, neighborhoods with only one grocery store face significant challenges when a dollar store opens, and these challenges increase with every new dollar store.
While there are valid concerns about dollar store expansions, Mullally believes that more research is needed. Some dollar stores might help food access in specific situations, or improve consumer well-being despite their challenges to traditional grocery stores.
To make informed decisions, policymakers need to consider the varied effects of dollar stores on food access. The study aims to provide insights that reflect the complexities involved in this growing retail trend.
In a broader context, food deserts, where access to affordable and nutritious food is limited, are an ongoing issue in many cities. According to a 2021 USDA report, over 6% of the U.S. population lives in food deserts, often impacting vulnerable communities. Understanding the dynamics of dollar stores and their influence on these areas could play a crucial role in creating effective solutions.
For more details, you can view the full study here.
