More Homes In The U.S. Are Purchasing Food From Dollar Stores Over Past 15 Years, Study Finds

Topline

Dollar stores are the fastest-growing food retailers for homes in the U.S., according to a study published in the American Journal of Public Health Thursday, as more households shift away from grocery stores and supermarkets amid rising food prices.

Key Facts

Researchers from Tufts University found that the average spending on food purchases per household at dollar stores increased by 89.7% between 2008 and 2020, according to an analysis of approximately 50,000 homes across the U.S.

Homes in rural areas spent more on food purchases at dollar stores than any other region with an increase of 102.9% in average spending.

The researchers note that while food purchases at dollar stores still represent a small percentage of total food purchases (2.1%) in the U.S., households spent “significantly” less of their food budget at grocery stores in 2020 (58.3%) than in 2008 (62.3%).

The study suggests more households are spending money at dollar stores because of rising food costs, as the average costs of grocery store or supermarket food purchases increased by 12% between 2021 and 2022, according to the Department of Agriculture.

Big Number

$8.7 billion. That’s how much Dollar General earned in fourth-quarter sales in 2021, according to the company. This is an increase of 2.8% over the previous year as the dollar store chain opened nearly 2,000 more stores between 2019 and 2021.

Key Background

Dollar stores have rapidly multiplied in recent years, particularly in low-income and rural areas, according to the Center For Science In The Public Interest. These areas typically have less access to larger, national grocers, as more than half of the U.S. population lives within a five-minute drive of a Dollar General—which announced its expansion of 1,050 new stores in 2023. As dollar stores “become a major source of food-at-home purchases for rural communities,” researchers note, more attention should be taken to the quality of food offered by popular dollar store chains. Wenhui Feng, a co-author of the Tufts University study, said additional research is needed to better understand how communities limited to foods sold at dollar stores impact health and diets.

Further Reading

How Dollar General Is Spreading Like Hot Gossip In Tiny Towns Across The Country (Forbes)