Studies Link Dollar Store Growth to Grocery Gaps in Black Communities

For years, Rev. Donald Perryman of Toledo, Ohio, questioned why the once-thriving Black business corridor around Dorr Street couldn’t attract a grocery store. His concerns were validated by a 2020 city study showing that the rapid spread of Dollar General stores discouraged investment from full-service grocers. “They’re like an invasive species,” Perryman said. “They overpower all the resources and make the businesses in those neighborhoods vulnerable.” After an initial moratorium slowed new dollar store development, it quietly expired — allowing yet another Dollar General to open near his church. Perryman and fellow ministers now advocate for an outright ban, fearing these chains could derail a new $12 million food hub meant to serve the neighborhood.

This local fight is part of a growing national movement. Dollar General and Dollar Tree, which owns Family Dollar, have more U.S. locations than Walmart and McDonald’s combined and continue expanding aggressively — especially in Black, rural, and low-income communities. These stores, offering mostly packaged, low-nutrition foods, are blamed for deepening food insecurity and driving out potential grocery stores. According to Tufts University, rural Black households now spend nearly 12% of their food budgets at dollar stores, partly due to the lack of alternatives.

Andre Perry of Brookings Institution noted even wealthy Black neighborhoods lack grocery store access, saying, “If this community was not Black, you would see greater investment.” Ashanté Reese at UT Austin added, “This isn’t a money problem, but a racism problem,” calling the dominance of corporate food chains a barrier to community care.

Tulsa City Councilor Vanessa Hall-Harper led the way in 2018, enacting the nation’s first ordinance to restrict dollar store expansion in underserved areas and later helping bring in Oasis Fresh Market. “These dollar stores don’t proliferate white communities,” she said. Inspired by her efforts, at least 54 cities have enacted similar restrictions.

While some residents appreciate the affordability, others—like Maryland State Sen. Mary Washington—highlight hidden costs and predatory practices. Perryman remains steadfast: “You’ve got to protect [this investment] from the predators. Let’s raise this investment now. We’ve got it. We’ve got to maintain it.”

Link: Capital B News