Dollar store chains would be prohibited from opening stores within one mile of each other if a proposed Chicago law passes
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- A proposal in Chicago would keep dollar store chains from opening stores within a mile of each other.
- The bill is slated for a vote in Chicago's city council this week.
- Dozens of other cities and towns have pushed back on Dollar General and Dollar Tree opening new stores.
Chicago is the latest city to consider limiting the number of dollar stores.
A proposed law that would keep stores from a single chain from opening within a mile of each other won approval from a committee of the Chicago City Council on Monday, the Chicago Sun-Times reported. The full council will vote on the measure on Wednesday, according to public broadcaster WTTW.
"This is a Fortune 200 company that has demonstrated absolutely no interest in being a good neighbor or being responsive to local government," Matt O'Shea, the council member who introduced the proposal, said at a Monday hearing, according to the Sun-Times. O'Shea was discussing Dollar Tree, which has about 20 stores in the Chicago area. The council's Committee on License and Consumer Protection, of which O'Shea is a member, approved the bill.
A spokespeople Dollar Tree, which also owns Family Dollar, did not immediately respond to requests for comment on the proposal from Business Insider. Through a lawyer, Family Dollar said at the hearing that it believed the council's zoning committee should consider the proposal rather than the license and consumer Protection committee.
"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," a Dollar General spokesperson said. "Our mission of serving others and our intense customer focus differentiate Dollar General from other seemingly similar retailers."
The proposed law doesn't mention dollar stores by name. Instead, it says that new "small-box retailers" could not be located within a mile of an existing store with the same owner or manager.
The law takes aim at stores with floor areas between 4,000 and 17,500 square feet and that sell most of their products for $5 or less. It wouldn't apply to stores with pharmacies, gas stations, or that dedicate at least 10% of their floor space to selling fresh foods, such as produce and meat.
If it becomes law, the proposal would add Chicago to the list of about 60 cities, towns, and other communities that have tried to curtail dollar store openings since 2018, according to the Institute for Local Self-Reliance.
Some have followed the path of the Chicago proposal, enacting laws limiting the opening of new dollar stores. Stonecrest, Georgia, even banned the stores in 2019, according to The Hustle.
Other towns have pushed back on specific store openings. One community in Southern Michigan pushed back on a proposed Dollar General store but ultimately approved the store after the company sued.
Many dollar stores lack fresh, healthy food options. Dollar Tree and Dollar General have responded by opening more stores with space for produce and refrigerated foods.
Dollar stores also suffer from clutter and understaffing, employees previously told BI.
Do you work at a Dollar General, Dollar Tree, or Family Dollar store and have a story idea to share? Reach out to this reporter at abitter@businessinsider.com