Stop & Shop is the new sensation in downtown Acton, rising from the ashes of the old K-mart building. It now competes with local gas stations and restaurants for the attention of ABRHS students looking for snacks and goodies. Many shoppers even prefer it over Roche Bros. or Trader Joe’s for their weekly groceries. But what does the arrival of this grocery powerhouse mean for local businesses in Acton?
Stop & Shop, a Northeastern American supermarket chain, is known for its wide selection of groceries, pre-prepared foods, and in-store pharmacies. While it doesn’t offer unique products, it has remained popular in the region. Founded in 1892 by the Rabinowitz family as a small Boston grocery called the Greenie Store, it has now grown into a chain of 365 stores.
When large chain stores like Stop & Shop move into small towns, the impact on local businesses can be significant, a phenomenon known as the Walmart Effect. This effect occurs when big retailers with greater selection, lower prices, and higher purchasing power force local stores to raise their prices because they cannot compete at the same scale. Research supports this: a Chicago study found that 82 out of 306 small businesses closed within two years of a Walmart opening. A 2005 UC Irvine paper also found that Walmart openings reduce county retail employment by about 150 workers, with many local employees either losing their jobs or having to accept lower wages at the new store.
In Acton, Stop & Shop could similarly affect local businesses like Roche Bros. and nearby gas stations. Shoppers may prefer the new store’s larger selection and lower prices, reducing revenue for existing stores. Gas stations that rely on after-school sales from students buying drinks and snacks could also see declines, as Stop & Shop offers more options closer to home.
The approval of a new supermarket, despite the presence of well-established stores like Roche Bros., Donelan’s, and Trader Joe’s, also raises questions about the town government’s consideration of local business health.
In conclusion, while Stop & Shop may be a welcome addition for shoppers, the Walmart Effect suggests it could harm existing local businesses through increased competition, lower prices, and a wider selection. How Stop & Shop will ultimately change Acton remains to be seen.
Check out page 10 for our favorite Spectrum snacks from Stop & Shop!