In a surprising twist, the announcement of Family Dollar closing nearly 1,000 stores has been hailed as a positive development by some community leaders. The closures, however, also highlight the risks of relying heavily on dollar store chains and the need for alternative retail options in underserved areas.

Vanessa Hall-Harper, a city councilor in Tulsa, Oklahoma, has been leading the effort to restrict the growth of major dollar store chains in the predominantly Black neighborhood of North Tulsa. In 2018, Tulsa became the first major city to pass legislation blocking the opening of new dollar stores within a mile of an existing location. Since then, 60 cities and counties, including Cleveland, New Orleans, and Akron, have implemented similar restrictions.

While dollar stores are often praised for providing affordable food and essentials to low-income Americans, critics argue that their business practices and proliferation in certain communities have negative consequences. These include a decline in the number of grocery stores and reduced access to fresh produce for lower-income households, as indicated by a study by researchers from the University of Toronto and UCLA.

Local leaders, like Hall-Harper, hope that the closures will spur the development of independent supermarkets and grocery stores, as well as alternative retail options. They believe that reliance on dollar store chains is detrimental to communities in the long run. The aim is to create "healthy neighborhoods" that offer fresh meats, fruits, and vegetables.

Dollar General and Dollar Tree, two of the major dollar store chains, argue that these restrictive measures harm communities by limiting customer choice, convenience, and affordability, especially during times of inflation. Dollar General also highlights that it is not designed to be a grocery store, yet it does offer essential components of a nutritious meal in all its stores. However, critics of the chains maintain that their narrow assortment of fresh foods does not adequately address the access gaps and nutritional needs of communities.

The expansion of dollar stores across the United States since the Great Recession has significantly reshaped the retail sector. However, these chains have faced opposition as they are accused of targeting low-income and minority neighborhoods. Moreover, concerns have been raised about crime, violence, and sanitation issues associated with these stores.

The recent closures of Family Dollar stores have ignited discussions about the importance of independent stores and a wider array of retail options. Local leaders emphasize the need for a shift towards a local resilience strategy, promoting neighborhood markets that cater to specific community needs. Nevertheless, challenges remain for independent stores amid consolidation in the grocery sector and the dominance of larger retailers.

Stacy Mitchell, co-director of the Institute for Local Self-Reliance, calls for stronger antitrust enforcement and increased investment in capital programs for small businesses to revitalize independent grocers. The Federal Trade Commission has taken steps in this direction by investigating large suppliers and retail chains for practices that disadvantage small stores.

As the push for more diverse retail options continues, the closure of dollar stores presents an opportunity for communities to explore sustainable alternatives and foster economic growth. The focus now turns to striking a balance between providing affordable options for low-income Americans and ensuring the long-term viability and vitality of local economies.