Across the U.S., dollar stores are popping up everywhere with steep discounts that give local businesses a run for their money. Now, several towns are fighting back against the discount stores.
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The number of dollar stores in the U.S. is currently more than the number of Walmart and McDonald's locations combined. Their cheap food and products have been significant in low-income, big-city neighborhoods and small towns alike.
However, several small towns like Wabasso, Minnesota, are working together to push back against the Dollar General, Dollar Tree, and Family Dollar stores, the Star Tribune reported.
"It was a battle, but we won it," Carol Atkins, the mayor of Wabasso, said.
The town of 765 people in southwest Minnesota passed a one-year commercial development moratorium through its city council shortly after declining a request by Dollar General to annex a piece of farmland where it wanted to build a new store.
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"They just care about coming in and making money. They don't care about your town and your people," Atkins said. "The family that owns our grocery store, they make deliveries, and they support our schools and do everything they can to support the town. Dollar General ain't going do that."
On the other side of the battle, a Dollar General spokeswoman said that the Nashville company "strives to be a positive business partner and a good community neighbor."
She added that "millions of Americans rely on Dollar General to provide convenient, affordable access to the everyday products they need and want."
Altogether, there are 30,000 dollar stores nationwide with 17,000 Dollar Generals and 13,000 Family Dollar and Dollar tree stores — the same company owns both.
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Kennedy Smith, a senior researcher of the Institute for Local Self-Reliance, a nonprofit that fights corporate consolidation, has spoken about dollar stores' effects on the country.
"We are seeing more communities around the country concerned about this over-proliferation," Smith said. "It's likely you already have a couple in your area. Do you really need more?"
A report from ILSR has found that retailers are not incentivized to come to a town once a dollar store opens there. In 2018 the spread of dollar chain stores found that grocers typically see a 30% sales drop, the report found.
Minnesota is not the only state with small towns deciding to block dollar stores from opening. Cities in Wisconsin, Iowa, Ohio, Tennessee, Maryland, New Jersey, North Carolina, and Alabama have all rejected the development plans for the stores, according to ILSR.
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Not only small towns but also bigger cities like Tulsa, Oklahoma, have passed ordinances that restrict the number of dollar stores that are allowed to be in low-income neighborhoods.
Dollar stores have been slammed for their lack of fresh grocery options and low-quality food. But, unfortunately, when they affect grocery stores' profits, which then force them to close, the quality of food available to neighborhoods then goes down.
Across the country several Dollar General employees have expressed their frustrations with the company. In one case in Nebraska an entire store quit, leaving a sign in the window apologizing to customers.
The Tribune reported that Minnesota Attorney General Keith Ellison's spokesman John Stiles did not confirm or deny if they were planning on investigating dollar store practices. However, they did provide the Tribune a statement.
"It's hard enough for Minnesotans to afford their lives, and it's even harder for folks in rural communities, be it through higher prices or lack of access or competition in services, supplies, and retail," Ellison said.