7 Save A Lot stores on Chicago's South and West sides at risk of closing

The food deserts on Chicago's South and West sides could spread even wider if seven Save A Lot grocery stores close at the end of the week.

All the stores opened within just the past couple of years. Now they are at risk of closing this coming Saturday if Yellow Banana, the Ohio-based company that owns and operates the stores, does not find a new investor to help keep them open.

At risk are Save A Lot stores at 420 S. Pulaski Rd. in West Garfield Park, 10700 S. Halsted St. in Morgan Park, 2858 E. 83rd St. in South Chicago, 7240 S. Stony Island Ave. in South Shore, 7908 S. Halsted St. in Auburn Gresham, and 4439 W. 63rd St. in West Lawn all of which reopened as Save A Lots in 2024 and 2025 after renovations backed by the city's tax incentives.

In addition, a Save A Lot store at 832 W. 63rd St. in Englewood could close. Many neighbors spent months protesting the opening of that Save A Lot in the former Whole Foods space at 63rd and Halsted streets in 2023.

Neighbors and community leaders in Englewood said at the time that they could not trust the Save A Lot brand — saying the discount grocer has a reputation for selling a lackluster product.

Yellow Banana had been using the Save A Lot brand and supply chain to operate the stores, but the grocery store chain has terminated its operating agreement with Yellow Banana.

In a statement, Save A Lot said the stores owned by Yellow Banana have faced "significant financial headwinds" in part due to "dramatic cuts to SNAP benefits."

"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," the company said.

The chief executive officer of Yellow Banana, Joseph Canfield, died of a stroke this past April.

While the Save A Lot stores are still operating, Canfield's sudden death sparked a default in Yellow Banana's redevelopment agreement with the City of Chicago, which provided $13.5 million in taxpayer financing in 2022 to renovate and reopen six Save A Lot locations. The default means the city could seek to force Yellow Banana to return that taxpayer funding to the city.

Canfield was billed as the force behind the stores. The Chicago Sun-Times reports the company did not submit a succession plan to the city after Canfield's death as required.

People living and working in the neighborhoods where the stores are located said they're already living in food deserts, and for many of them Save A Lot is the only location they an walk to, and the closest they can drive to for groceries.

"It's going to make an impact to the community; a real big impact," Carolyn Milon said.

Many of the shelves inside some Save A Lot stores in Chicago were empty on Wednesday, and remaining items like produce, dairy, baked goods and meat, were being sold at 50% off.

Milon and her husband, Brandell Kemp, were stocking up for their family at the Englewood store, where they spent $270 on 12 bags of groceries.

While the discount is welcome for the couple and their five children, Milon said the possibility of the store closing by Saturday will have an impact on those who rely on it for affordable groceries each week.

"I hate it's closing, because now we don't have a grocery store to go to. So now we have to travel even farther, and this was very convenient for us and for the seniors around here, because we didn't have to go that far," she said.

Lolita Butts works in Englewood, and has shopped at the neighborhood's Save A Lot since it opened.

"It's an affordable option," she said. "My hope is that someone will take it over, keep the prices where people can afford it, so this community can thrive and survive."

Peter Strazzabosco, Deputy Commissioner of the Chicago Department of Planning and Development, said efforts are still underway to prevent the closures. At the same time, the city is exploring options to recover the $13.5 million in taxpayer funds used to renovate many of the stores.

"The City's priority is for the stores to remain open with a current or new operator. If they go dark, the goal is for each building to expediently re-open with a full-service grocer," Strazzabosco said. "Yellow Banana, Save A Lot, DPD and other financial partners are discussing opportunities to keep the stores open with potential investors or new suppliers. These are all turnkey locations ready for continued occupancy."

If the stores do close, Strazzabosco said each of the six locations renovated with taxpayer funding must be taken over within 12 months to avoid defaulting on their agreement with the city. While the seventh location in Englewood did not receive taxpayer funding, the property was part of a land sale agreement when it was first built as a Whole Foods, and if a new grocer isn't brought in to take over that site within 18 months, that property also would risk defaulting on its agreement with the city.