The Shocking Closure of Family Dollar Stores: How It Impacts Low-Income Communities and Your Wallet
By Jessica DiNapoli and Kaylee Kang
NASHVILLE (Multibagger) - For Latrina Begley, a 37-year-old Nashville resident, the local Family Dollar was a lifeline. Nearly every day, she or one of her six children would visit the store, utilizing federal food benefits to purchase essentials like milk, Hot Pockets, and frozen pizza. But earlier this year, that lifeline was severed.
In an effort to boost profits, Family Dollar decided to shut down nearly 1,000 of its 8,200 stores. These closures come after cuts to the Supplemental Nutrition Assistance Program (SNAP) — previously known as food stamps — significantly affected sales. According to retail research firm HSA Consulting, purchases made with SNAP account for $11 out of every $100 spent at Family Dollar.
For Begley, the closure means fewer affordable options in her low-income neighborhood, which the U.S. Department of Agriculture (USDA) classifies as having low access to healthy, affordable food. "It's harder for us and me," she says, now relying on her mother for childcare and additional support.
Implications of Store Closures
Most of the closed Family Dollar stores are in areas with high competition from other low-cost food retailers like Walmart. However, 15 of these stores are in urban neighborhoods with high poverty rates and limited access to affordable food.
According to Sean Cash, an economist at Tufts University, "It's removing a place where people are shopping, where they've been buying more food than ever before. This is going to make food access harder."
Why This Matters: An Analysis
- Economic Impact on Low-Income Families: The closure of Family Dollar stores exacerbates the financial strain on low-income families. For example, a package of eight Ball Park beef hot dogs costs $4.95 at Family Dollar but $5.99 at Walgreens. Similarly, Honey Bunches of Oats cereal costs $3.75 at Family Dollar compared to $5.99 at a convenience store.
- Limited Access to Essentials: Many Family Dollar locations do not offer fresh produce, but they do provide budget-friendly household items like laundry detergents and toiletries. "When these close, it is exacerbating an already existing problem," says C.J. Sentell, CEO of the Nashville Food Project.
- Increased Dependence on Food Pantries and Non-Profits: With the closure of Family Dollar stores, community members are increasingly turning to local non-profits for food and personal items. For instance, Tonya Young, a Nashville resident, has had to rely more on the resource center at Healing Minds and Souls since the closure.
- Challenges for Disabled and Elderly Residents: Stanley Chase, a 64-year-old veteran who uses a wheelchair, now faces a one-hour bus ride to the nearest Kroger. He used to make full dinners from the goods bought at Family Dollar, but now spends more than double the price on food at local convenience stores.
Family Dollar's parent company, Dollar Tree, is exploring options to sell or spin-off Family Dollar, while also continuing to open new stores in select areas. However, these new openings are not necessarily in high-poverty areas, leaving many communities underserved.
Conclusion: What You Need to Know
The closure of nearly 1,000 Family Dollar stores has a ripple effect that significantly impacts low-income communities. Families like Latrina Begley's face increased financial strain and limited access to affordable food and essentials. While Dollar Tree may see a boost in profits, the human cost is profound.
For those affected, understanding the broader economic implications can help in seeking alternative support systems, such as local food pantries and non-profits. Moreover, it highlights the need for policy interventions to ensure that low-income families are not left in the lurch.
Bottom Line: The closure of Family Dollar stores underscores a critical issue in the U.S.: the widening gap in food accessibility for low-income communities. It's a wake-up call for policymakers, community leaders, and everyday citizens to advocate for more equitable solutions.