Dollar stores’ food options may not be hurting American diets overall, analysis shows

Using dollar stores for food purchases may be a common practice for Americans looking to free up funds for the rest of their grocery list, researchers from Tufts University School of Medicine, the Gerald J. and Dorothy R. Friedman School of Nutrition Science and Policy at Tufts University, and the USDA-Economic Research Service report in the Journal of the Academy of Nutrition and Dietetics.

Their multi-year analysis of where households buy their non-restaurant calories found that dollar store food purchases are rising. Although the food purchased is less healthy compared with other food outlets, families are balancing this with more nutritious items elsewhere.

To measure the impact of the accelerating expansion of dollar stores and the convenient, calorie-rich snacks that line their shelves on the American diet, the researchers examined food purchases made by 180,000 nationally representative households in the United States between 2008 and 2020.

They then combined this data with the USDA’s Economic Research Service’s Purchase to Plate Crosswalk tool, which allowed them to estimate the dietary quality of these households’ food purchases.

The analysis found that calories obtained from dollar store items have nearly doubled, growing from 3.4% to 6.5% of a household’s total purchases, especially in households with lower incomes or those headed by people of color.

But the study also reflected more nuanced shopper behaviors, particularly for those in rural areas—where the nearest grocery store could be much farther away than the local dollar store. While these budget-friendly outlets do provide discounts for lower-quality products, even those who use these retailers the most are, on average, getting over 90% of their calories from other outlets.

“The literature suggests that people go to different types of stores for different reasons and the dollar store is one that people choose because of the price advantage,” said first author Wenhui Feng, Tufts Health Plan Professor of Health Care Policy Research and assistant professor of public health and community medicine at the School of Medicine.

“There are a lot of concerns that foods on dollar store shelves are less healthy, but what’s on the shelf does not equal what each household takes home. Our study looks at how healthy the foods purchased in dollar stores are and compares that with the healthfulness of each household’s overall food purchases.”

As the fastest-growing food retailer in the United States in the past decade, dollar stores have transformed the retail landscape with at least 37,000 physical locations nationwide.

While known for carrying a wide range of products, they also sell packaged foods and beverages that are high in calories and low in nutrients, with only a small percentage of outlets carrying produce or meats. The study noted their presence is particularly strong in the South and outside of cities.

While dollar stores have raised concerns about public health, competition with local businesses, and security issues due to reported understaffing, more research is needed to validate their actual impact on Americans. At least 25 local governments have established policies restricting their expansion, but the effectiveness of these measures is unknown.

The research confirms that items purchased from dollar stores are, on average, less healthy than those purchased elsewhere, but also notes that the average household is getting 55% of their non-restaurant calories from grocery stores and 22% from club stores.

“Some people seem to be going to dollar stores strategically to buy sweets and snacks, along with other packaged foods,” said senior author Sean Cash, Bergstrom Foundation Professor in Global Nutrition and Chair of the Division of Agriculture, Food and Environment at the Friedman School, but he notes that people who buy more of those at dollar stores seem to be buying less elsewhere.

“We need more data on the real effects of dollar stores on healthy eating as some communities may be putting the policy cart before the horse.”

Using dollar stores for food purchases may be a common practice for Americans looking to free up funds for the rest of their grocery list, researchers from Tufts University School of Medicine, the Gerald J. and Dorothy R. Friedman School of Nutrition Science and Policy at Tufts University, and the USDA-Economic Research Service report in the Journal of the Academy of Nutrition and Dietetics.

Their multi-year analysis of where households buy their non-restaurant calories found that dollar store food purchases are rising. Although the food purchased is less healthy compared with other food outlets, families are balancing this with more nutritious items elsewhere.

To measure the impact of the accelerating expansion of dollar stores and the convenient, calorie-rich snacks that line their shelves on the American diet, the researchers examined food purchases made by 180,000 nationally representative households in the United States between 2008 and 2020.

They then combined this data with the USDA’s Economic Research Service’s Purchase to Plate Crosswalk tool, which allowed them to estimate the dietary quality of these households’ food purchases.

The analysis found that calories obtained from dollar store items have nearly doubled, growing from 3.4% to 6.5% of a household’s total purchases, especially in households with lower incomes or those headed by people of color.

But the study also reflected more nuanced shopper behaviors, particularly for those in rural areas—where the nearest grocery store could be much farther away than the local dollar store. While these budget-friendly outlets do provide discounts for lower-quality products, even those who use these retailers the most are, on average, getting over 90% of their calories from other outlets.

“The literature suggests that people go to different types of stores for different reasons and the dollar store is one that people choose because of the price advantage,” said first author Wenhui Feng, Tufts Health Plan Professor of Health Care Policy Research and assistant professor of public health and community medicine at the School of Medicine.

“There are a lot of concerns that foods on dollar store shelves are less healthy, but what’s on the shelf does not equal what each household takes home. Our study looks at how healthy the foods purchased in dollar stores are and compares that with the healthfulness of each household’s overall food purchases.”

As the fastest-growing food retailer in the United States in the past decade, dollar stores have transformed the retail landscape with at least 37,000 physical locations nationwide.

While known for carrying a wide range of products, they also sell packaged foods and beverages that are high in calories and low in nutrients, with only a small percentage of outlets carrying produce or meats. The study noted their presence is particularly strong in the South and outside of cities.

While dollar stores have raised concerns about public health, competition with local businesses, and security issues due to reported understaffing, more research is needed to validate their actual impact on Americans. At least 25 local governments have established policies restricting their expansion, but the effectiveness of these measures is unknown.

The research confirms that items purchased from dollar stores are, on average, less healthy than those purchased elsewhere, but also notes that the average household is getting 55% of their non-restaurant calories from grocery stores and 22% from club stores.

“Some people seem to be going to dollar stores strategically to buy sweets and snacks, along with other packaged foods,” said senior author Sean Cash, Bergstrom Foundation Professor in Global Nutrition and Chair of the Division of Agriculture, Food and Environment at the Friedman School, but he notes that people who buy more of those at dollar stores seem to be buying less elsewhere.

“We need more data on the real effects of dollar stores on healthy eating as some communities may be putting the policy cart before the horse.”