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# GRAPHIC: Dollar stores impact rural grocery stores more than urban ones, USDA analysis shows
- URL: https://www.investigatemidwest.org/graphic-dollar-stores-impact-rural-grocery-stores-more-than-urban-ones-usda-analysis-shows/
- Published: 2024-06-10T19:00:00.000Z
- Updated: 2024-06-10T19:00:00.000Z
- Description: Grocery stores in urban and rural areas risk closure, drops in employment and declining sales when dollar stores enter the marketplace. Rural stores are hit hardest, according to USDA researchers.
- Author: Sky Chadde, Investigate Midwest
- Tags: Data Harvest, rural America, TP::Explainer, grocery stores, rural affairs, #wp, #wp-post, #Import 2026-06-18 04:56

For years, rural areas have dealt with declining food options — fewer restaurants and[ grocery stores](https://www.investigatemidwest.org/when-a-grocery-store-closes-up-and-its-your-last-one-you-feel-it-immediately/). One option that has popped in recent decades is the dollar store.

When dollar stores enter a marketplace, whether rural or urban, grocery stores are affected negatively, [according to U.S. Department of Agriculture researchers who used proprietary data](https://www.ers.usda.gov/amber-waves/2024/may/dollar-store-entry-affects-rural-grocery-stores-more-than-urban/?cpid=email&ref=investigatemidwest.org).

The number of stores, the number of employees and the amount of sales all decreased after dollar stores opened nearby, according to the analysis, which used data from 2000 to 2019.

Rural areas were most affected. For instance, rural grocery stores were almost three times as likely to close than those in urban areas, according to the analysis.

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