Full Citation
Title: CDFI Financing of Supermarkets in Underserved Communities: A Case Study
Citation Type: Miscellaneous
Publication Year: 2008
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Abstract: The concept of food security has received significant public attention in recent years. Nearly 11% ofall U.S. households manifest some level of food insecurity, with low-income minority householdsshouldering a disproportionately large share. One of the primary causes of food insecurity in lowincomeareas is inaccessibility to full service supermarkets. This study examines whether (or the extentto which) there are economic reasons for the lack of supermarkets in distressed urban areas, such aslocation-dependent expense differences between urban and suburban locations. We also explore howvarious financing strategies help to mitigate those expense differences. Finally, we assess some of theimpacts of supermarket development in urban and other underserved places.Findings suggest that 1) the addition of a supermarket in an underserved area offers residents a bettervariety of healthy food and enhances consumer choice; 2) urban supermarket employees tend to residein distressed areas within close proximity to their store; 3) these employees obtain jobs with a positivewage trajectory and at wage levels comparable to their industry peers; 4) supermarket customers residein close proximity to the stores at which they shop; 5) supermarkets may serve as retail employmentanchors, although this finding remains ambiguous; and 6) supermarkets reduce leakage of food retailexpenditures, resulting in a net increase in employment for the local communities. We believe thesefindings substantiate the role that the CDFIs can play in this sector, and that our analysis offers lessonsto be learned about various approaches to financing supermarket development.
User Submitted?: No
Authors: Califano, Cathy; Loethen, Lance; Kako, Edward; Goldstein, Ira
Publisher: The Reinvestment Fund
Data Collections: IPUMS USA
Topics: Other, Poverty and Welfare
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