Even in ‘Food Deserts,’ Independent Grocers Struggle to Survive

In 2018, Illinois launched a $13.5 million initiative aimed at bringing grocery store options to areas known as ‘food deserts’ — “defined by the U.S. Department of Agriculture as any low-income urban neighborhoods without a grocery store within a mile, and any rural communities without one within 10 miles” — where residents have a hard time accessing healthy and affordable foods. 

But of the six stores that opened that year, four have closed, highlighting the problem of longevity for such projects that receive initial fanfare but little ongoing support.

As Molly Parker explains, “Capitol News Illinois and ProPublica examined 24 stores across 18 states, each of them either newly established, preparing to open or less than five years old when they received funding through the federal USDA Healthy Food Financing Initiative in 2020 and 2021. As of June, five of these stores had already ceased operations; another six have yet to open, citing a variety of challenges including difficulties finding a suitable location and limited access to capital.”

Ultimately, the investigation found, “For all the benefits the opening of a store can bring to a community, if it can’t compete on pricing, it will struggle to survive.” Although food deserts are defined by distance, other factors — the ability to buy in bulk, broader options — can still prompt people to travel farther for better deals. Meanwhile, some suppliers won’t work with small, independent stores.

To support the growth and longevity of local stores, Illinois launched a new program that will focus on supporting startups and small, independent stores. “And for the first time, government-owned stores in Illinois are eligible to apply for state aid. Chicago is the first major city in the nation to consider this option, though underwriting losses with taxpayer funds is controversial.”