A number of jurisdictions have placed restrictions on the number of dollar-style discount stores based on what is regarded as predatory pricing and a limited range of foods.  The biggest concerns relate to the trend that proliferation of these chain stores drive small groceries out of business. This effectively deprives low-income consumers of access to fresh fruit, vegetables and perishable foods. The rise in dollar-style stores creates the phenomenon of "food deserts" since residents of these areas, frequently without transport, do not have convenient access to full-service supermarkets

Dollar stores are strategically located and clustered in areas with low income and also in rural areas without competition from major chains. Dollar discount stores including Dollar General and Dollar Tree, with its subsidiary Family Dollar, operate as many as 30,000 stores in the U.S. This volume represents a 10,000-unit increase over the past ten years with plans to increase units by an additional 20,000 within a decade.

Since stores are in the region of 7,000 square foot in extent compared to 40,000 square foot for a medium-sized Supermarket, capital costs are low favoring proliferation.  It is estimated that there are as many as 100 dollar discount stores located within a five-mile radius in moderate to low-income metropolitan areas.

According to a CNN Business report by Nathaniel Meyersohn, Birmingham, AL, Oklahoma City, OK, Mesquite, TX and Cleveland, OH have all introduced zoning rules that limit the location of dollar stores.

In response Dollar General is introducing fresh fruit and vegetables in 500 stores and is now stocking a range of "good & smart" nutritious items.  Although criticized for the limited initial approach it is evident that Dollar General and Dollar Tree will eventually provide a wider array of health foods.

With the advent of COVID-19 consumers are favoring smaller-format units including Aldi, and convenience stores for essentials including bread, milk and eggs.  Dollar discount stores may be a valuable outlet for eggs, making them available across a wide geographic area and specifically to lower-income consumers. 

Unfortunately, this may create problems of distribution given obvious logistic challenges.  Local producers may be able to service dollar-style discount stores using smaller vehicles and regular deliveries to maintain stock held in small store coolers.  Dollar stores should be regarded as a new and possibly beneficial retail channel to increase consumption.