Some communities have few nearby places to buy a wide selection of affordable food.
For households, that can mean longer trips, higher shopping costs, or fewer choices. A supermarket may offer more products, but households still need to be able to reach it and afford what it sells.
How can food policy improve the options people have?
Vote: Would you fund a new supermarket?
A neighborhood has few nearby grocery options.
The city proposes a grant to bring in a supermarket, with the goal of improving food access and residents’ diets.
Would you support the proposal?
YesNoI need more information
How could a new supermarket improve food access?
A closer store could reduce the time and cost of shopping and offer foods that were difficult to obtain nearby.
For the proposal to improve diets, residents would also need to buy and eat more nutritious food.
To understand whether this will happen, we need to look at two decisions:
where households shop
whether a retailer can keep the store operating
Why might an area struggle to attract a supermarket?
A retailer may expect too few sales to cover its costs because there are too few customers, limited purchasing power, or strong competition for those customers.
The store must pay for inventory, labor, space, refrigeration, and deliveries. Fresh food also creates a risk of spoilage if it does not sell quickly enough.
Residents can need better food options even when expected sales are too low to support a supermarket.
A grant can help a store open. What keeps it open?
A grant can cover part of the upfront investment, such as equipment or refrigeration, and make a location financially feasible.
Once the store opens, it still needs enough sales to cover ongoing costs such as inventory, wages, rent, and electricity.
The city therefore needs to ask both whether the store can remain in business and whether residents will use it in ways that improve food access or diets.
Researchers studied a supermarket opening in Philadelphia supported by the Pennsylvania Fresh Food Financing Initiative - a program that helped fund the opening of a new store in a “food desert.”
Residents reported better perceptions of food access, but the study found no detectable improvement in reported fruit-and-vegetable intake or body mass index.
Opening the store improved how residents viewed their options. That did not automatically translate into a change in what they ate.
Would better shopping options change what people buy?
Another set of researchers wanted to understand whether higher-income households bought more nutritious groceries, on average, than lower-income households. The comparison concerns the nutritional quality of groceries purchased.
They asked: If lower-income households could buy the same products at the same prices as higher-income households, how much of that difference would disappear?
A. Less than one-quarterB. About halfC. Most of it
They examined purchases before and after a new supermarket opened nearby, and when households moved to a different neighborhood.
They asked whether households changed what they bought when their shopping options changed.
They also used a model of purchasing decisions to estimate what would happen if lower-income households faced the same products and prices as higher-income households.
Most of the nutritional difference in purchases remained
In the model, giving lower-income households the same products and prices as higher-income households closed about 9% of the difference in the nutritional quality of their purchases.
Most of the difference remained. Access to the same products and prices alone did not explain why grocery baskets differed.
A nearby supermarket can still make shopping easier. But opening it does not, by itself, establish that residents will eat more nutritious food.
Helping households afford produce: Double Up Food Bucks
Colorado’s Double Up Food Bucks matches SNAP purchases dollar for dollar at participating locations, up to $20 per day, for fresh fruits and vegetables.
An eligible $10 SNAP purchase earns $10 in Double Up benefits for produce.
This approach helps a household buy more food from participating sellers. It does not require the city to build another supermarket.
Double Up Food Bucks Colorado. Program rules checked October 8, 2026; purchase and redemption procedures vary by location.
Researchers tested a produce rebate in Massachusetts
The Healthy Incentives Pilot (HIP) offered a 30% rebate on eligible fruit and vegetable purchases made with SNAP benefits.
Researchers randomly assigned 7,500 SNAP households to receive the offer. Other SNAP households in the county received their usual benefits.
They compared fruit and vegetable intake between the groups to test whether the incentive changed what people ate.
Adults offered the rebate consumed about one-quarter cup more per day of the fruits and vegetables targeted by the program, compared with adults receiving usual SNAP benefits.
The estimated increase was 0.24 cup-equivalents per day.
This trial provides evidence that making eligible produce more affordable can change consumption. It does not establish the effect of Colorado’s Double Up program.
Could other stores help meet the same food-access need?
Our opening problem was limited access to affordable food. A new supermarket is one response, but households may already use small grocers, dollar stores, or several types of stores together.
Dollar stores may offer a nearby place to buy some foods, even when their assortment differs from a supermarket’s.
Do they fill a gap where supermarkets are absent, and how do they fit into households’ shopping?
Do dollar stores fill a gap in food access?
We tracked U.S. store locations from 2000 to 2017 and identified areas with low incomes and limited supermarket access.
We examined where dollar stores entered and whether those areas later gained supermarket access.
This allowed us to distinguish places with a temporary lack of access from places where supermarkets remained absent.
Dollar stores can remain where supermarkets are absent
Dollar stores were not disproportionately entering low-income, low-access areas overall.
But among low-income, low-access areas where a dollar store entered, more than 90% remained without supermarket access for the rest of the study period.
Dollar stores also had lower exit rates in those areas. This suggests they may fill part of a food-access gap where supermarkets do not locate.
Dollar stores and supermarkets can complement each other
We then modeled Dollar General expansion, and found that rival small-format stores lost net revenue, while supermarkets and supercenters gained net revenue and store density.
The results suggest dollar stores compete more directly with other small formats and can complement supermarkets, which offer a different assortment.
That raises a household-level question: could shopping at both help people stretch their food budget?
Shopping at two stores could stretch a food budget
Hypothetical example: the same size and quality of packaged item
Supermarket
Dollar store
Price for a 16-ounce item
$2.40
$1.60
Price per ounce
15¢
10¢
Cost of five items
$12
$8
Buying those items at the dollar store saves $4, which could be spent on other foods at the supermarket—if the extra trip does not use up the savings.
Illustration of a possible household response, not an estimate from either Chenarides paper. Dollar stores do not necessarily have the lowest unit price.
Households use several stores to fill their grocery basket
Households can buy some items at dollar stores and complete their grocery basket elsewhere.
Food-access policy needs to consider the combination of stores households use.
The city wants to fund a supermarket to improve food access and residents’ diets.
Would you support it?
Would it make food easier to reach, more affordable, or both?
What are residents already buying at other stores?
Would a produce incentive or support for existing stores address the problem more directly?
What evidence would show that the grant helped residents?
References
Bitler, M., & Haider, S. J. (2011). An economic view of food deserts in the United States. Journal of Policy Analysis and Management, 30(1), 153–176. DOI.
Bonanno, A. (2012). Food deserts: Demand, supply, and economic theory. Choices, 27(3), 1–4. Article.
Cummins, S., Flint, E., & Matthews, S. A. (2014). New neighborhood grocery store increased awareness of food access but did not alter dietary habits or obesity. Health Affairs, 33(2), 283–291. DOI.
Allcott, H., Diamond, R., Dubé, J.-P., Handbury, J., Rahkovsky, I., & Schnell, M. (2019). Food deserts and the causes of nutritional inequality. Quarterly Journal of Economics, 134(4), 1793–1844. DOI.
Double Up Food Bucks Colorado (2026). Program description and rules. Website. Accessed October 8, 2026.
Olsho, L. E. W., Klerman, J. A., Wilde, P. E., & Bartlett, S. (2016). Financial incentives increase fruit and vegetable intake among Supplemental Nutrition Assistance Program participants: A randomized controlled trial of the USDA Healthy Incentives Pilot. American Journal of Clinical Nutrition, 104(2), 423–435. DOI.
Chenarides, L., Cho, C., Nayga, R. M., Jr., & Thomsen, M. R. (2021). Dollar stores and food deserts. Applied Geography, 134, 102497. DOI.
Chenarides, L., Çakır, M., & Richards, T. J. (2024). Dynamic model of entry: Dollar stores. American Journal of Agricultural Economics, 106(2), 852–882. DOI.
Feng, W., Page, E. T., Sun, B., & Cash, S. B. (2025). The healthfulness of foods purchased at dollar stores: Insights from household scanner data from 2008 to 2020. Journal of the Academy of Nutrition and Dietetics, 125(11), 1736–1745.e6. DOI.