Is it just a matter of zoning laws? Because in strictly economic terms, it seems to me like it would be very advantageous to open a grocery store in a neighborhood that is devoid of them.
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It’s a combination of zoning laws and the way competition works.
Zoning laws initially restrict where grocery stores can open. After grocery stores do open, market forces can drive them away.
For example, a neighbourhood grocery store at the edge of a community might open at first, but it can get dwarfed by a larger grocery store a couple of blocks away on the main drag. However, that store could later be closed for various reasons, such as the company moving to an area with more space a bit further away.
The original reason for the neighbourhood grocery store closing is gone, but it’s hard for a new one to open up again. This can be for a number of reasons, such as bus routes no longer serving that area, or a new restriction on truck sizes that got put in place since the grocery store left.
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