Why Use It?

Improve health outcomes. Rates of obesity and associated health problems are highest and have risen the most rapidly among low-income communities and people of color. A healthy diet that includes fruits and vegetables has been shown to reduce incidence of obesity and other chronic illnesses in children, adults, and seniors.

Individuals make choices about their diet, but their decisions are influenced by the food that is locally available. Unfortunately, too many Americans live in unhealthy food environments. There is increasing evidence that our eating habits, patterns of obesity, and related health conditions are influenced by the foods available in the neighborhoods in which we live.

Increase employment opportunities. New food retailing outlets bring needed jobs to communities that often have high levels of unemployment. Each supermarket creates anywhere between 100 and 200 permanent jobs, many of which go to local residents, and they also provide temporary construction jobs. For example, a new grocery store in a low-income neighborhood in Philadelphia created 258 jobs, over half of which went to local residents. Furthermore, large proportions of grocery employees belong to unions and receive benefits.

Improve economic development and access to opportunities. Low-income residents often live in distressed, high-poverty communities that have experienced years of population and job loss, and physical and economic decline. New food retailing outlets can help revitalize these communities, contribute to economic development, and improve access to important services.

• New stores create local shopping opportunities that can capture dollars being spent outside of the community. One study estimated that residents of inner-city communities across the United States spend $85 million per year at stores located outside their community.
• New stores can also contribute to the physical revitalization of communities by returning abandoned and vacant land to productive use.
• New developments often pave the way for additional private sector investment, since grocery stores are high-volume magnets that support complementary stores and services like pharmacies, banks, and restaurants. With more places to spend money locally, these stores capture even more of residents’ dollars that were formerly “leaking” out to other communities. When community-serving institutions like community development corporations (CDCs) hold ownership interests in the stores, they reinvest profits into the community through their other activities such as local affordable housing construction or small business development.
• Grocery store developments bring needed revenue to cash-strapped municipalities through sales and property taxes. Community residents benefit through tax-financed city services.

Improve access to services and healthy food. Full-service grocery stores carry a wide selection of low-priced goods. Supermarkets enable one-stop shopping and often house additional services that are difficult to find in underserved neighborhoods, such as pharmacies or in-store banks.

Tax revenue for municipalities. Grocery store developments bring needed revenue to cash-strapped municipalities through sales and property taxes. Community residents benefit through tax-financed city services.