Chicagoans voice concerns as 7 Save A Lot stores face possible closure amid declining SNAP use

Grocery stores primarily on South, West sides could close Saturday
Updated 1 hour ago
CHICAGO (WLS) -- Community members and local leaders are raising concerns over the possible closure of seven Save A Lot stores in Chicago, including a location in Englewood, amid financial challenges involving store operator Yellow Banana and declining Supplemental Nutrition Assistance Program usage.

Residents gathered at a monthly meeting of the Resident Association of Greater Englewood to discuss the potential loss of one of the community's few grocery options.



Concern was evident throughout the meeting, with attendees expressing frustration over the possibility of losing access to nearby food retailers.

"This is our tax dollars that funded this," one attendee said during the meeting.



"They need to return our money back to us," another said.

The Englewood Save A Lot at 63rd and Halsted streets is one of seven Chicago locations -- primarily on the South and West sides -- that could close by Saturday if an alternative operator is not found.

"We need to have several options. This is a big community. We still have over 50,000 residents. We need on every corridor, on every corner, a healthy food option," said Asiaha Butler, founder and CEO of the Resident Association of Greater Englewood.

Shoppers said they were surprised by the news.

"I was shocked. For most people, this is the closest store they have in the area," John Godinez said.



Godinez said the effects of a possible shutdown are already visible inside at least one store.

"The store is practically almost empty in there," he said. "Everybody's coming in to get what they can for half price."

According to Save A Lot, the company recently decided to end its arrangement with Yellow Banana, which operates the seven Chicago stores.

In a statement, a Save A Lot spokesperson said the stores had experienced "significant financial headwinds" and that the company had taken on additional operational responsibilities to keep them open.

"Unfortunately, Save A Lot made the difficult decision to end this arrangement with Yellow Banana," the spokesperson said. "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."



Save A Lot also cited "significant financial losses" and "dramatic cuts to SNAP benefits," saying the stores experienced "a 26-percent decline in SNAP/EBT tender types" compared with last year.

The Chicago Department of Planning and Development said Save A Lot recently notified the city that it expected to terminate its license agreement with Yellow Banana at the end of the month. The department said the situation was influenced by operational issues involving SNAP benefit reductions and the April death of Yellow Banana CEO Joe Canfield, who handled day-to-day store operations.

Mayor Brandon Johnson also pointed to reductions in SNAP benefits as a factor affecting the stores.

"What's happening at the federal level is what's causing the disruption at the local level. Right? You know, eliminating SNAP benefits has cost communities across Chicago," Johnson said.

Three years ago, the city provided $13.5 million in tax-increment financing, or TIF, funding to support the stores in areas considered food deserts. According to the city, six of the seven locations are covered by redevelopment agreements tied to that funding, while the Englewood store is covered by a separate land sale redevelopment agreement.



Under those agreements, the stores must be reoccupied by another grocer within a specified cure period to avoid default. Six locations have a 12-month period, while the Englewood store at 63rd and Halsted has 18 months.

City officials said their priority is to keep the stores operating under either the current operator or a new one. If closures occur, the goal is to reopen each location with a full-service grocer as quickly as possible.

The city also said it is exploring opportunities to recoup taxpayer funding if necessary and noted that the TIF investment paid for capital improvements that remain in place, leaving the stores as turnkey locations ready for continued occupancy.

Meanwhile, Save A Lot said it will continue working with city officials, community leaders and other stakeholders to explore ways to maintain food access and support affected employees during the transition.
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