The rise of discount retailers, particularly Dollar Tree, has become a point of contention in small communities across the U.S., with local economies grappling with the consequences of their proliferation.
Recently, the town of Washington, Maine, demonstrated this growing conflict as residents overwhelmingly voted for a six-month moratorium on any major non-residential projects, directly targeting the proposed opening of a Dollar General store. This decision reflects broader concerns shared among local residents about how such chains threaten the character of their community and the livelihood of independent businesses. Sean Donaghy and his wife Amy opened the Washington General Store back in 2015 and quickly became beloved fixtures within the community. But with the potential threat of Dollar General's establishment, they rallied locals to oppose the move.
“It’s a place where people love to go, have a chat, get a hot coffee,” noted Kathleen Gross, fervently opposed to the development, emphasizing the store's role as more than just a marketplace. It is, for many, the heart of the town. Residents worry about the impact of dollar stores on local jobs, business vitality, and the diversity of product offerings. They fear not only for the store’s fate but also the overall character of Washington.
Proponents of dollar stores argue they provide low-cost alternatives for consumers, especially those on limited incomes. Yet, Washington is not alone; other nearby communities, like Lincolnville and Thomaston, have also instituted moratoriums against these chain stores. These towns see the development of large retailers as detrimental to the community ethos and economy. A longstanding example includes Belfast, which has limited box store establishments since 2001 following plans for a Wal-Mart.
Research backs up these apprehensions. A recent study published in Applied Economic Perspectives and Policy reveals significant impacts following the launch of dollar stores. When these stores enter a new market, independent grocers face a 2.3% increase in the likelihood of closures, employment decreases by 3.7% at these stores, and overall sales plummet by 5.7%. Kennedy Smith from the Institute for Local Self-Reliance has been vocal about the risks associated with dollar stores, stating, “If you get three dollar stores within a two-mile radius of each other, they’re almost certain to kill or put at risk an established grocery store.”
The chain's structure often rewards shareholders over local economies, siphoning profits to out-of-state headquarters and leaving only minimal contributions to community growth, such as property taxes. “The main source of funds coming back to the community are property taxes and the employees’ lower wages,” Smith noted, raising concerns about the sustainability of communities reliant on such retail models.
Despite community pushback, there are groups advocating for the inclusion of dollar stores. The Consumer Choice Center released statements claiming the moratorium would limit choices for low-income residents and those on fixed incomes, arguing for deregulation and support of more affordable options for purchasing goods. “The arguments made in favor of the moratorium do nothing but limit the choices of others,” the group contended.
With Washington’s recent vote, town officials plan to reconsider retail development regulations to potentially disallow large, non-residential retailers permanently. Change is inevitable, as Donaghy points out, but he and other residents want to steer the future of Washington rather than allowing outside corporations to dictate their community’s character and economy. “Washington just wants to be at the helm of whatever change is coming, and not have something like Dollar General come in and lower the bar,” he asserted.
This localized resistance embodies broader concerns as communities find themselves at the crossroads between convenience and preserving the unique spirit of their towns. The struggle continues as small towns assess their priorities and vision for sustainable growth.