Dollar stores are feeding more Americans than Whole Foods, and it's leading some communities into crisis

pulse

December 10, 2018 10:02 PM

Dollar stores may be provoking economic distress in rural communities and low-income black neighborhoods.

Plastic grocery bags from a 99 Cents Only Store in Los Angeles.

At first glance, the Dollar General slogan is music to a bargain-hunter's ears: "Save Time. Save Money. Every day!"

With prices that are 20% to 40% lower than those at traditional grocery and drug stores, the company has become a staple in retail-starved towns and small urban neighborhoods.

It's also a source of controversy following the Institute for Local Self-Reliance's (ILSR) recent report, which said dollar stores are preventing disadvantaged communities from getting ahead — and, in some cases, even contributing to decline of local businesses.

One of the biggest concerns outlined in the report is that stores like Dollar General and its competitor, Dollar Tree, are targeting rural communities and low-income black neighborhoods, many of which already lack access to healthy food.

It's a business model that's worked well for Walmart, which has had its own struggles competing with Dollar General. After piloting a series of "mini" stores called

According to Saunders, selling fresh foods is a "big part" of these stores' expansion plans. He also said dollar stores have become increasingly popular among middle and higher income consumers.

Dollar General stores are spreading across the country. BusinessInsider

Dollar General has made an effort to provide healthier options to consumers by adding

Peterson's visit to a Dollar Tree store in Richmond, Virginia, revealed an appalling display of messy aisles, cardboard-covered doors, and abandoned check-out registers.

Dollar General's fresh food section. BusinessInsider

Business Insider's Mary Hanbury also toured a Dollar General store in Brooklyn and found basics such as milk and eggs, but no fresh fruits or vegetables.

"There definitely wasn't enough here to do your weekly grocery shopping," she wrote.

A nearby Dollar Tree store had a larger grocery section, but no fresh produce at all.

The availability of healthy items becomes an even bigger problem when a neighborhood's alternative options are pushed out.

s a trend of closures among indepen

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