Project Summary

The rapid expansion of dollar stores, particularly in rural and low-income areas, has reshaped the retail landscape, with over 32,000 locations established since the 2008 Great Recession. While much research has focused on the health implications of dollar store food offerings, the competitive dynamics between dollar stores, independent grocery stores, and supermarkets remain underexplored.

This study aims to examine the role of dollar stores as horizontal competitors, assessing their impact on the survival of local grocery stores, retail market competition, and employment patterns in rural communities. Existing research has primarily analyzed Walmart’s influence on independent grocers, leaving a gap in understanding the specific effects of dollar stores. Moreover, employment implications tied to dollar store expansion require deeper analysis, as these stores employ a labor-intensive model that could significantly affect rural job opportunities.

By addressing these research gaps, this project will contribute valuable insights into the economic and retail transformations occurring in rural America, guiding policymakers and stakeholders in making informed decisions regarding food accessibility, retail sustainability, and employment trends.