The recent increase in food prices may send even the most loyal shoppers of small grocery stores to the big-box stores, but at what cost? In some major cities, like New York City, there is a severe shortage of neighborhood grocery stores and many of its citizens are finding it difficult to get to stores for fresh produce and other healthy foods.

Why Are Small Supermarkets Shutting Down?

Although New York City is facing a crisis, many other communities are facing similar problems. Increased rent, increased competition with the growth of big-box stores, expanded product lines in traditionally non-food stores such as drug stores and high food prices all equate to loss profit, inevitably forcing some small grocers to close the doors for good.

As a result, many people are spending more money on gas to get to stores and prices are increasing as competition dwindles. For those who rely on public transportation, buying a substantial amount of groceries, then trying to juggle it home on city busses can be problematic. Ultimately many turn to non-traditional sources for food, such as the nearest convenience store which generally sells unhealthy processed foods at high prices. In New York City this trend coincides with the increase in obesity and diabetes among its citizens.

In April 21, 2008, a study by the Department City Planning did a survey on the need for supermarkets in the City of New York. The analysis showed a widespread shortage of supermarkets and neighborhood grocery stores in the city. It also measured the areas with the greatest level of need for fresh food suppliers based on neighborhoods with the highest levels of diet-related diseases and largest populations with limited opportunities to purchase fresh foods. Approximately three million New Yorkers live in high need areas.

“Many people in low-income neighborhoods are spending their food budget at discount stores or pharmacies where there is no fresh produce,” said Amanda Burden, the city’s planning director to the New York Times. “In our study, a significant percentage of them reported that in the day before our survey, they had not eaten fresh fruit or vegetables. Not one. That really is a health crisis in the city.”

Why Was This Study Needed?

NYC's population increased by approximately three percent from 2000 to 2006, yet several neighborhoods lost supermarkets and more are in jeopardy of closing. According to the NYC Department of City Planning, closures are also occurring in neighborhoods already poorly served by fresh food suppliers. Residents in Harlem and the Bronx have been particularly vocal about the loss of neighborhood grocery stores and supermarkets.

Residents in some areas have limited opportunity to buy fresh, nutritious food, which may reduce their chances of preparing healthy meals. Large amounts of the household food budget may be spent in stores not carrying fresh foods, such as discount stores and convenience stores.

More neighborhood grocery stores and supermarkets would reduce food costs. Additional stores could also increase convenience and the availability of fresh foods, empowering shoppers to make healthier decisions about what to buy and what to eat.

Rates of obesity and diabetes have dramatically increased in New York City. A recent study found New Yorkers gained an accumulative 10 million pounds over the past two years. Diabetes now affects over 700,000 people in New York City, over 1.1 million New Yorkers are obese and another 2 million are overweight.

In 2006, a study published in the American Journal of Preventive Medicine found the presence of a supermarket within a Census tract alone or in combination with a grocery store was associated with lower prevalence ratios of obesity and overweight residents.

Supermarket Need Index

A Supermarket Need Index (SNI) was created to determine the areas in the city with the highest levels of diet-related diseases and largest populations with limited opportunities to purchase fresh foods. The index measures the need for supermarkets based on high population density, low access to a car at the household level, low household incomes, high rates of diabetes, high rates of obesity, low consumption of fresh fruits and vegetables, low share of fresh food retail and capacity for new stores.

The index shows:

• Three million New Yorkers live in neighborhoods with high need for grocery stores and supermarkets.

• Three quarters of a million New Yorkers within high need neighborhoods do not have supermarkets within a comfortable walking distance (five city blocks), making food shopping particularly problematic for households with no car.

• Low income households may be further adversely affected without competitively-priced fresh food available at the neighborhood level. The consequences include more time and money being budgeted for grocery shopping.

• There is enormous capacity for new supermarkets throughout the city. NYC has the potential to capture approximately $1 billion in lost grocery sales to suburbs. The loss in sales is enough to support more than 100 new neighborhood grocery stores and supermarkets.

Innovative solutions to New York's problem and other cities may be the only way to solve the shortage of convenient neighborhood stores. Possibilities include community revitalization initiatives such as seen with the nonprofit based organization, The Food Trust, which was instrumental in creating a $120 million initiative in Pennsylvania to assist in financing supermarkets and healthy bodegas in underserved communities. Other efforts could include rezoning as necessary for future supermarkets in high-need areas.

Other initiatives could include:

• Free public transportation supermarket tokens given to those living five or more miles from a grocery store.
• Low or no fees for fresh fruit vendors to set up fruit and vegetable stands in challenged areas.
• City-sponsored fruit and vegetable weekend markets in city-owned facilities.
• Incentives for supermarket owners to expand delivery services to problematic areas.

The Spirit of a Neighborhood

There are other benefits in having a neighborhood store beyond the convenience of shopping. Such stores add a sense of neighborhood charm, familiarity and add to the quality of life to its residents.

See Also:

• The Lost Supermarket: A Breed in Need of Replenishment
• Inexpensive Meals - Dinner Recipes for Under $1.00 Per Serving

  Source: New York City Department of City Planning

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