7 Chicago Save A Lot stores set to close as SNAP cuts deepen food access concerns

CHICAGO - There is growing concern on Chicago’s South and West sides, where seven Save A Lot stores are set to close Saturday, July 25.

The stores serve communities where access to fresh, affordable food is already limited.

The backstory:

Even one fewer grocery store could have a major impact on neighborhoods already struggling with food insecurity. As it stands, many families continue to navigate significant cuts to SNAP benefits.

The following Save A Lot stores are slated to close Saturday:

• Auburn Gresham: 7908 S. Halsted St.
• Englewood: 832 W. 63rd St.
• South Chicago: 2858 E. 83rd St.
• South Shore: 7240 S. Stony Island Ave.
• West Garfield Park: 420 S. Pulaski Road
• West Lawn: 4439 W. 63rd St.
• West Pullman: 10700 S. Halsted St.

The closures are a result of Save A Lot cutting ties with Yellow Banana, which operates the stores — leaving the financially troubled operator with no choice but to shut them down.

"Grocery stores run on really tight margins and the redemption of SNAP benefits is a part of their business model. You take away SNAP dollars, and that can be the breaking point for a grocery business," explained Jim Conwell, vice president of marketing and communications for the Greater Chicago Food Depository. 

A Save A Lot spokesperson says SNAP cuts have contributed to a decline in business, pointing to a 26 percent drop in SNAP and EBT transactions compared with last year.

Community members and local leaders are calling the closures a blow to their neighborhoods.

"We believe that grocery retail is a really important part of a strong and resilient food system. A strong food system is one that not just makes sure that everyone has access to the food they need, but it also generates economic opportunity and jobs," Conwell said. 

Conwell says local food pantries will do what they can to help but underscores the importance of residents being able to shop for their own food.

"The closure of grocery stores is making a challenging situation even worse. In most of these neighborhoods, one-third or even one-half of residents are likely facing food insecurity," Conwell said. "We have amazing partner food pantries in these neighborhoods, but we want to be clear, a food pantry does not replace a grocery store. Folks who have SNAP dollars to spend need a grocery store to spend them at."

In 2022, the City of Chicago approved $13.5 million in taxpayer money for Yellow Banana to acquire and rehabilitate six West and South side Save A Lot supermarkets.

Officials with the Chicago Department of Planning and Development tell FOX Chicago that in the midst of the looming closures, conversations with Save A Lot, Yellow Banana, and financial partners are still underway.

What they're saying:

Department of Planning and Development Deputy Commissioner Peter Strazzabosco shared the following statement with FOX Chicago on Friday:

"Save A Lot, Yellow Banana, DPD and other financial partners continue to discuss opportunities to establish a viable financial structure for long-term grocery operations at the seven store locations.

"If the stores close, the City’s goal is their prompt reopening, potentially with one or more new suppliers or operators."

Ald. Stephanie Coleman, 16th Ward, issued the following statement to FOX Chicago:

"I have remained steadfast with community leaders in our collective effort to attract a quality and affordable grocer that aligns with our vision of revitalization inclusive of housing, public safety, and community spaces. Englewood remains the heartbeat of Chicago, and we are committed to addressing the bigger issue of food deserts as well as ensuring that major retail developments in underserved communities are accessible and affordable. It has always been the opinion of myself, along with the residents of Englewood, that SAVE a Lot did not meet this standard.

"Over the past seven years Englewood and the surrounding communities that make up the 16th Ward of Chicago have experienced tremendous growth in economic development, housing, manufacturing, infrastructure improvements, parks improvements, and business retention. Our community has earned the right to have a major grocer that can provide quality produce and foods that eliminate the stain of food insecurities and diet-related health inequities."

Save A Lot's spokesperson said:

"Since 2023, Save A Lot has worked alongside its Retail Partner, Yellow Banana, to ensure uninterrupted operations of seven store locations in Chicago. When these stores encountered significant financial headwinds under Yellow Banana’s ownership, Save A Lot took on additional operational responsibilities to keep these stores open and maintain continued service to customers.

"Unfortunately, these stores have continued to face significant challenges, including dramatic cuts to SNAP benefits which have severely impacted these stores. Compared to last year, the stores have experienced a 26% decline in SNAP/EBT tender types. As a result of this and other financial headwinds, Save A Lot made the difficult decision to end our arrangement with Yellow Banana. Yellow Banana is exploring alternatives in order to keep the stores open. If they are unable to find an alternative, the stores will cease operations, effective July 25th.  

"We are committed to the wellbeing of the communities we serve. We will continue to engage with City and Community leaders to explore ways to provide access to quality food and services for residents, and we are actively supporting impacted Yellow Banana team members throughout the transition."

What's next:

The seven locations mentioned above are scheduled to close Saturday. There is still merchandise on the shelves in some locations, including the West Garfield Park store — with 50 percent off signs posted on some items. 

West Garfield ParkFood and DrinkConsumerNews