Residents of low-income, low-access neighborhoods across the United States are grappling with the loss of nearby Family Dollar stores, a critical source of affordable groceries and essentials for those using the Assistance Program Supplemental Nutrition Supplement (SNAP).
The closure of nearly 1,000 Family Dollar stores, out of a total of 8,200, was a strategic decision by the chain’s parent company, Dollar Tree, to improve profitability. However, this decision has had a significant impact on the communities that rely on these stores for their daily needs.
In Nashville, Latrina Begley, a mother of six and an employee of the city’s housing agency, expressed the challenges she now faces with the closing of the Family Dollar store near her home. The store’s closure left her with few affordable shopping options within a mile, leading her to rely on extra support from her mother and consider turning to food banks.
Family Dollar’s closures have been concentrated in areas where there is competition from other low-cost retailers, like Walmart, but the impact is being felt hardest in high-poverty urban neighborhoods, where only convenience stores and pharmacies are within a one-mile radius. According to HSA Consulting, SNAP purchases represent $11 out of every $100 spent at Family Dollar, highlighting the importance of these stores to SNAP recipients.
The closures exacerbate challenges in accessing affordable, healthy food in areas already identified by the United States Department of Agriculture (USDA) as having low access to such options. Policy experts and community leaders warn that the closures, after a period of high inflation, will worsen access to groceries in poor communities.
Family Dollar has historically served as a convenient shopping destination for low-income people, offering a wider variety of affordable private label items. The retailer’s parent company, Dollar Tree, reported gross profit of $4.6 billion in the six months ended Aug. 3 and is exploring options for Family Dollar, including a potential sale or spinoff.
A Dollar Tree spokesperson noted the company’s commitment to long-term success and mentioned that customers can use SNAP benefits on the Instacart delivery app to order from Family Dollar, although at higher costs than in-store purchases.
The closures have left residents like Stanley Chase, a veteran and SNAP recipient in Nashville, with limited options for purchasing affordable food. Chase now faces an hour-long bus ride to reach a supermarket, with the Family Dollar store he was counting on having closed.
Family Dollar’s decision to accept food benefits about two decades ago proved lucrative, with sales surging after the 2008 recession and during the COVID-19 pandemic. Still, the company announced it would close about 600 stores over the next six months and another 370 when leases expire, with 657 stores already closed from early February to early August.
In Columbus, Ohio, senior resident Felicia Manns is also feeling the impact of a local Family Dollar closing. Without a car and often using a wheelchair, Manns is left with limited and more expensive shopping options, highlighting a sense of neglect in her community since the store closed.
Family Dollar store closures present a significant challenge for SNAP recipients and low-income families, reducing their access to affordable food and essentials and increasing their reliance on less economical alternatives.
Reuters contributed to this article.
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