The Chicago City Council is moving forward with new rules that could brake on the city's expansion of dollar store chains. On Monday, the council's Committee on License and Consumer Protection took a significant step by endorsing a proposal from Ald. Matt O'Shea (19th Ward).
This proposed ordinance aims to restrict where new 'small-box retailers,' including popular dollar stores, can open their doors. Additionally, the new regulations ensure these stores are more attentive to customer feedback and concerns.
Chicago's New Law Targets Dollar Store Expansion
The proposed law in Chicago targets a specific segment of retail stores - those with a floor area ranging from 4,000 to 17,500 square feet and primarily selling items priced at $5 or less. However, this regulation would not affect stores that include pharmacies, gas stations, or those dedicating at least 10% of their space to fresh food items like fruits and meat.
If passed, Chicago would join approximately 60 other cities, towns, and communities that, since 2018, have been actively working to regulate the spread of dollar stores, as reported by the Institute for Local Self-Reliance. These efforts range from legal measures similar to Chicago's proposal to outright bans, like the one seen in Stonecrest, Georgia, in 2019.
In some instances, communities have resisted specific dollar store projects. For example, a town in Southern Michigan initially opposed a Dollar General store but later conceded after facing legal action from the company.
The proliferation of dollar stores often raises concerns about the lack of fresh and healthy food options. In response, chains like Dollar Tree and Dollar General have started to modify their store formats, incorporating more space for fresh produce and refrigerated items.
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Chicago Council's Vote Draws Mixed Reactions
In a recent decision by the Chicago City Council, only two members, Alderman Felix Cardona Jr. (31st precinct) and Alderman Gilbert Villegas (36th precinct), voted against a proposal affecting dollar store chains. Supermarket News has attempted to contact both for their comments on the matter.
As reported by the Chicago Sun-Times, the primary concern of these aldermen is the potential restriction of food options for residents in their districts. Dollar General, one of the major chains affected by this proposal, expressed concern that such restrictive measures could negatively impact communities, especially during inflation.
They argue that limitations could force customers to travel further or spend more for basic household and food items.
Chicago's struggle with food deserts is a growing issue. A joint analysis by WBEZ and the Chicago Sun-Times revealed a 63% increase in areas with low food access over the past decade. The situation has been exacerbated by the closure of major grocery stores, including a Walmart Supercenter in Chatham, a Whole Foods in Englewood, and an Aldi in Gresham.
The closure of the Englewood Whole Foods and its replacement by Save A Lot in April 2023 met resistance from residents. Concerns were raised at a town hall meeting with Save A Lot CEO Leon Bergmann, indicating a strong desire for grocery stores that adequately meet community needs.
In response to the growing issue of food deserts, Chicago Mayor Brandon Johnson announced a plan last year to potentially involve the city in operating grocery stores, aiming to provide better food access across the city.
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