Save A Lot’s Plan to Close More Locations Could Impact Food Access Throughout the Country

Since the onset of the COVID-19 pandemic, shoppers have seen a sharp increase in food prices. As a result, both budget shoppers and those who have previously splurged have had to become more savvy with what to buy and where to buy it from. And while there are plenty of places to stop by to catch a good sale, some budget-conscious shoppers will be on the hunt for a new discount grocer later this year if Save A Lot is their preferred place to shop. 

 Following a December 2020 announcement of plans to convert to a wholesale business model, the budget grocery chain has been permanently closing stores in various locations. In addition to the closing of locations, the new wholesale strategy will also include selling 300 corporate stores to independent retailers while still providing budget-friendly, healthy choices for shoppers. The remaining stores will be transitioned to this new model by the end of 2021. 

Although the closures have allowed some new budget-friendly grocers to step in and assist low-income communities, many communities have yet to see a new store take Save A Lot’s place. For some low-income communities, this means little to no access to nutritious and affordable food as Save A Lot is the only grocery store within a few miles.

As the new shift continues, Save A Lot doesn’t have plans to leave shoppers everywhere without a replacement. This past summer, the company transferred ownership of 32 corporate locations to Yellow Banana, a newly-formed retail grocery platform. Similarly to Save A Lot’s initial model, the  grocery chain will “invest in underserved, predominantly minority communities” in Cleveland, Chicago, and Milwaukee with hopes to fill the void for the communities once dependent on the budget-focused grocer. The new ownership claims it will broaden each store’s selection of local and regional products, and hire from local communities. Each of the stores will undergo a significant remodel in 2022.