Seven Save A Lot Chicago locations across the South and West Sides are set to go dark Saturday, marking one of the largest grocery pullbacks the city has seen in years. The closures cap years of financial turbulence for operator Yellow Banana, which took over the discount grocery stores with promises to revive food access in historically underserved neighborhoods.
A spokesperson from Save A Lot confirmed the shutdown in a statement. The company said it has worked alongside Yellow Banana since 2023 to keep the Save A Lot Chicago stores running, even stepping in to handle day-to-day operations when Yellow Banana hit financial trouble.
That support wasn’t enough to outlast the pressures piling up this year.
A Steep Drop in SNAP Spending
Falling SNAP benefits hit these stores especially hard, according to the Save A Lot spokesperson. Compared with last year, the locations saw a 26% decline in SNAP and EBT transactions, a sharp drop for stores that serve communities with high rates of food assistance enrollment.
“Unfortunately, these stores have continued to face significant challenges, including dramatic cuts to SNAP benefits which have severely impacted these stores,” the spokesperson said. “As a result of this and other financial headwinds, Save A Lot made the difficult decision to end our arrangement with Yellow Banana.”
That move effectively pulls the plug on Yellow Banana’s ability to keep the doors open. Save A Lot says Yellow Banana is still searching for a way forward. Barring a last-minute deal, the stores will close for good on July 25.
Beyond the SNAP decline, Yellow Banana has spent recent years navigating missed deadlines, protests, legal disputes and sudden closures. Also, the company lost CEO Joe Canfield to a fatal stroke in April, a setback that left the operation without the leadership that had driven its original investment.
Related Article: Save A Lot Expands Community Grocery Strategy
City Funding for Save A Lot Chicago Locations Now in Question
The stakes go beyond seven storefronts. Yellow Banana received a $13.5 million community development grant from the city in 2022. It was part of a broader $26.5 million investment aimed at expanding access to affordable, healthy food on the South and West Sides.
City officials aren’t ready to write the project off just yet. Peter Strazzabosco, deputy commissioner of Chicago’s Department of Planning and Development, said the city, Yellow Banana, Save A Lot and other financial partners are discussing options to keep the stores open with new investors or suppliers. If the stores do go dark, the city wants each building reopened quickly under a full-service grocer.
That urgency traces back to the original agreement. Six of the seven locations were required to stay open through 2035 under the redevelopment deal, and if they close, a new grocer must reopen within a year.
Mayor Points to Washington
Chicago Mayor Brandon Johnson weighed in during an interview with WGN9, tying the Save A Lot Chicago closures to decisions made far from City Hall.
“You know what’s happening at the federal level? That’s what’s causing the disruption of the local market,” Johnson said. “I’m going to continue to do my part to make these necessary investments. The hope is that our different leaders can come together to find a way.”
His comments point to a tension playing out in grocery aisles nationwide: as SNAP benefits shrink, discount grocers serving lower-income communities absorb the impact first.
Save A Lot says it isn’t walking away from the neighborhoods it served. The company plans to keep talking with city and community leaders about food access options and says it’s helping displaced Yellow Banana workers navigate the transition.
For now, residents of Englewood, Auburn Gresham, West Garfield Park, and other neighborhoods affected by the imminent closure of seven Save A Lot Chicago locations are facing a familiar problem: another gap in a food landscape already stretched thin.