No more new dollar stores in Detroit? City Councilwoman proposes moratorium

(CBS DETROIT) – There’s no shortage of dollar stores throughout Detroit. According to Dollar General, they have 22 stores in the city. For Detroit City Councilwoman Angela Whitfield Calloway, she’s hoping more do not pop up.

“I have transportation, but I may not want to drive really far, or it might be an emergency, it might be an item I know they have,” Kyirea Lewis said.

Lewis is all for convenience and good prices, which is why sometimes she shops at a dollar store.

Now with Whitfield Calloway proposing that a moratorium be placed on new dollar store openings, Lewis wonders what the future will hold.

“It’s not like it’s a bargain like it used to be, so whether it’s here or not, they’re pretty convenient to the community,” she said.

“Dollar stores can displace local businesses, reduce competition, and reduce economic diversity. This can result in limited choices for consumers and economic hardship for small, independent retailers,” said Whitfield Calloway.

Economists believe grocery stores have a hard time competing with dollar stores, especially in a short radius.

“There’s been talk about food deserts…where large areas where fresh produce isn’t available dollar stores may have exacerbated the trend towards food deserts,” said Wayne University Economics Department Chair  Kevin Cooter.

According to Cotter, many Detroiters lack access to transportation, which prevents locals from venturing to other options.

“Say if it’s like an elderly person or college kid that lives in the area—like everyone doesn’t have cars to shop at Kroger or Walmart and such,” Lewis said.

Whitfield Calloway says the stores can ultimately weaken the well-being of Detroiters. Experts echo the councilwoman’s notion, pointing out safety concerns.

“Because these stores are small, they are not likely to be well staffed, which makes them more prone to robbery and theft,” Cooter said.

The councilwoman hopes the moratorium can help diversify Detroit’s local economy.

We reached out to Dollar Tree, Family Dollar, and Dollar General. 

Dollar General issued the following response:

“With approximately 75 percent of Americans within five miles of one of our 19,000+ stores, thousands of our customers rely on Dollar General for convenient access to affordable everyday household essentials.

“We do not believe moratoria are the solution to community concerns such as the availability of healthy eating options and competition. To the contrary, we believe the passage of moratoria harm customers who depend on us to help them stretch their budgets, particularly in inflationary times.

“We are disappointed anytime we are unable to serve our customers due to a moratorium. We believe our mission of Serving Others and our intense customer focus differentiate Dollar General from other seemingly similar retailers, something we demonstrate in communities where we are provided the opportunity to engage with government and community leaders. 

“While we are not a grocery store, every Dollar General store offers components of a nutritious meal, including canned and frozen vegetables, canned fruits, proteins, grains, dairy, and more.  Additionally, we’ve worked with a registered dietician and nutritionist to create Better For You recipes to help our customers create healthier meals from products sourced primarily from our stores. We also offer fresh produce in more than 4,400 DG stores with plans to have fresh produce in more than 10,000 total stores in the coming years, with a meaningful number in USDA-defined food deserts.

“We opened our first store in Detroit nearly 14 years ago and currently operate 22 stores in Detroit city limits.”