IN THE PAST TWO DECADES, DOLLAR STORES EVOLVED FROM REGIONAL DISCOUNT RETAILERS, CONCENTRATED IN THE SOUTHERN AND MIDWESTERN UNITED STATES, TO NATIONAL CHAINS THAT DERIVE THE MAJORITY OF THEIR REVENUE FROM CONSUMABLE PRODUCTS, AND INCREASINGLY, PERISHABLE FOOD PRODUCTS. DOLLAR STORES EXPANDED RAPIDLY FOLLOWING THE GREAT RECESSION, AS MANY U.S. HOUSEHOLDS ECONOMIZED ON EVERYDAY ESSENTIALS. BY 2017, THE DIFFERENCE BETWEEN THE TOTAL NUMBER OF DOLLAR STORES AND SUPERCENTERS REACHED 25,073 STORES. HOWEVER, LITTLE IS UNDERSTOOD REGARDING THE ECONOMIC IMPACTS OF DOLLAR STORES AS NON-TRADITIONAL FOOD RETAILERS.USING A SMALL-BOX BUSINESS MODEL, DOLLAR STORES PREFER LOCATIONS IN LOW-INCOME, RURAL AND DENSELY POPULATED URBAN AREAS, MARKETS IN WHICH CONVENTIONAL SUPERMARKETS OFTEN FIND UNPROFITABLE. DOLLAR STORES MAY PROVIDE IMPROVED ACCESS TO BASIC PRODUCTS AND RETAIL ACTIVITY IN ECONOMICALLY-DISTRESSED COMMUNITIES. OPPONENTS OF DOLLAR STORES ARGUE THAT THEY NEGATIVELY AFFECT COMMUNITY HEALTH AND ECONOMIC DEVELOPMENT BY TARGETING HIGH-POVERTY NEIGHBORHOODS, OFFERING INSALUBRIOUS FOOD PRODUCTS, AND CAUSING THE EXIT OF SMALL GROCERS. SEVERAL CITIES HAVE IMPLEMENTED DOLLAR-STORE ZONING ORDINANCES.BY COMBINING PUBLIC AND PRIVATE DATA SOURCES WITH MACHINE LEARNING, GEO-SPATIAL, AND ECONOMETRIC METHODS, THIS RESEARCH INVESTIGATES (1) THE GROWTH AND LOCATIONAL PATTERNS OF DOLLAR STORES WITH RESPECT TO THEIR STORE DEMOGRAPHIC, SOCIOECONOMIC, AND MARKET-LEVEL CHARACTERISTICS; (2) THE IMPACT OF DOLLAR-STORE GROWTH ON CHANGES IN HOUSEHOLD PURCHASING BEHAVIOR; AND (3) THE EFFECT OF DOLLAR-STORE ENTRY ON THE VIABILITY OF INDEPENDENT GROCERY STORES. OUR RESEARCH WILL ELUCIDATE THE CONSEQUENCES OF DOLLAR-STORE GROWTH ON U.S. RETAIL MARKET STRUCTURE, INFORM POLICYMAKERS, AND CONTRIBUTE TO SUSTAINABLE U.S. FOOD SYSTEMS AND ECONOMIC DEVELOPMENT.
$623,756FY2022National Institute of Food and AgricultureUSDA
University Of Florida, Gainesville FL