This US city only has one supermarket for 45,000 people. New legislation seeks to fix that
Big grocery can use anti-competitive clauses to block other stores from entering a market. Rhode Island is the second state to ban that practice
TL;DR
- Rhode Island has banned restrictive covenants, where large grocery stores prevent competitors from opening in former store locations.
- This practice has contributed to food deserts and limited grocery choices in communities like Woonsocket, Rhode Island.
- The ban aims to increase competition and improve food access and affordability.
- Other cities, Washington D.C., and the state of Washington have implemented similar bans.
- California is considering a ban with a retroactive provision, and federal action is being explored.
- Independent grocers believe these bans will allow them to better serve community needs.
- Challenges remain, including the cost of retrofitting spaces and the need for capital for smaller operators.