Dollar Tree, Dollar General, and others could face new restrictions in Chicago

City of Chicago lawmakers will have a chance to consider a measure that would prohibit dollar stores opening within a mile of one under the same owner or manager, reports the Chicago Sun-Times.

The city’s Committee on License and Consumer Protection approved the measure and the full city council will vote on it next week.

Chicago currently has 150 discount grocers.

The proposal does not mention dollar stores like Dollar Tree and Dollar General by name but refers to small-box retailers that could not be within a mile of an existing store with the same owner or manager. The measure includes stores that are between 4,000 and 17,500 square feet in size and sell most of their product for $5 or less. Locations with pharmacies, gas stations, or those that have 10% of their floor occupied by fresh foods would be exempt.

There were only two “no” votes against the proposal coming from Alderman Felix Cardona Jr. (31^st precinct) and Alderman Gilbert Villegas (36^th precinct). Supermarket News has reached out to both for a comment.

According to the Chicago Sun-Times, both aldermen did not want to limit the food choices of those residents in the areas they serve.

Dollar General had this to say about the measure:

“We believe restrictive measures harm communities by limiting customer choice, convenience, and affordability, particularly in inflationary times, and forcing customers to travel farther and/or spend more to access basic household and food items. Our mission of serving others and our intense customer focus differentiate Dollar General from other seemingly similar retailers.”

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Chicago certainly has its share of food deserts. According to a WBEZ-Chicago Sun-Times analysis, low-food access has jumped 63% in the city over the last decade.

A few major grocers have left over the last few months, including a Walmart Supercenter in Chatham, a Whole Foods in Englewood, and an Aldi in Gresham.

Chicagoans, however, want the right grocery store to serve their needs. When the decision was made to close the Whole Foods in the Englewood neighborhood and Save A Lot took over the lease in April of 2023, residents protested the move and voiced concerns at a town hall meeting with Save A Lot CEO Leon Bergmann.

Chicago Mayor Brandon Johnson announced a plan late last year that involves the city owning grocery stores in order to prevent the spread of food deserts.