Dollar stores are taking over as pharmacies shutter. Why some say it’s hurting communities

Discount stores will soon replace five pharmacies that closed last year, raising concerns from some who say such businesses hurt high-poverty communities.

Dollar General has filed plans to open new locations within four former Walgreens and CVS sites, while Dollar Tree has claimed a vacant Walgreens in Taylor Berry, according to city permits.

The new stores will increase the two companies' locations to more than 70 in Louisville, generating conflicting feelings for some in the community who say the businesses use predatory tactics to draw profits from mostly low-income neighborhoods.

Rachel Roarx, executive director of the Southwest Dream Team and a state representative, said she's happy to see a vacated building in Beechmont filled. But the South End business advocacy group does not think a dollar store is a best use for the space.

"It will be utilized. It's not a vacant space," she said. "On the other hand, it's not ideal in terms of growing the community or identifying a unique sense of place," like a local business might.

Trinidad Jackson, assistant dean for culture and liberation at the University of Louisville School of Public Health, who has a doctorate in public health sciences, said government officials should be concerned by the trend — stores carrying unhealthy foods replacing pharmacies needed to treat chronic illnesses that are often caused by poor diets.

"We've seen or heard undercurrents of 'we need full-service grocery stores within our living areas,'" Jackson said. "I don't think immersing communities in dollar stores is the answer, especially when it's something that is not needed nor asked for by community members."

In an emailed statement, Dollar General said meeting customers' needs is the company's top priority when choosing locations.

"We believe the addition of each new store provides positive economic benefits including additional access to affordable products for customers; the creation of new jobs for local residents and career development opportunities for our employees; (and) the generation of additional tax revenue for the City," the statement said.

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Three of the new stores are within half a mile of a similar business, including one Dollar General that will be just a block from an existing Family Dollar. (Dollar Tree and Family Dollar are owned by the same company.)

The new locations will open at:

• 700 Algonquin Parkway in Taylor Berry

• 7500 Terry Road in Pleasure Ridge Park

• 2106 Brownsboro Road in Clifton

• 200 E. Broadway downtown

• 4149 Taylor Blvd. in Beechmont

A new Dollar General is also planned on vacant property at 7717 St. Andrews Church Road near Pleasure Ridge Park.

A map of current and coming stores shows the vast majority are located in Louisville's west and south ends, where poverty rates are as high as 75% of individuals, according to U.S. Census data.

A 2023 report from the Institute for Local Self-Reliance states, "One might assume that the dollar chains are simply filling a need, providing basic retail options in cash-strapped communities. ... (But) in small towns and urban neighborhoods alike, dollar stores drive grocery stores and other retailers out of business, leave more people without access to fresh food, extract wealth from local economies, sow crime and violence, and further erode the prospects of the communities they target."

The report says communities nationwide have increasingly pushed back against dollar stores, with more than 50 cities enacting laws to limit their expansion — typically by prohibiting new locations from opening within one or two miles of an existing one.

In 2018, Louisville residents successfully prevented Family Dollar from receiving liquor licenses at 22 locations within the west and south ends. But the city does not have legislation limiting the stores' density.

That's something Jackson said Louisville officials should consider, especially if they want to improve health equity in low-income areas.

"People consume the items because that's what's available," he said of food sold at the stores. "... They don't have any say in this. Decisions are being made without their consultation, their input."

Two health entities are stepping up to fill a pharmacy gap left by the closure of the Walgreens in Beechmont.

Family Health Centers has filed a permit to open a pharmacy next to its Iroquois location, across the street from the former Walgreens. And this week, UofL Health — Mary & Elizabeth Hospital opened a new full-service pharmacy less than a mile away.

However, Jackson said Metro Council and planning officials must be prepared for future pharmacy closures, with both Walgreens and CVS announcing plans to close even more locations nationwide.

"When you're extracting pharmacies from the communities and replacing them with dollar stores, what is that doing for the needs that people in poverty have?" he said.

Reach reporter Bailey Loosemore at bloosemore@courier-journal.com, 502-582-4646 or on Twitter @bloosemore.

This article originally appeared on Louisville Courier Journal: Louisville pharmacies replaced by new dollar stores, causing concerns