PILOT ROCK — Pilot Rock, which lost 11% of its population in the last census, also is the hottest market for dollar stores in Umatilla County.

On Tuesday, Oct. 26, local officials and other people associated with the project gripped their shovels and grinned for the camera during a groundbreaking ceremony near 241 S.W. Fourth St. Eyes North Corp. of Chicago will build the store and then lease it to the Family Dollar chain of dollar stores.

At a reception at the old Pilot Rock schoolhouse next door, Eyes North President Randy Coakley said national dollar store chains realized Oregon was an untapped market and began expanding accordingly. Coakley said his company is working on dollar stores in Oregon locations as far flung as Lakeview and Port Orford.

Dollar store chains seemed to have taken a special interest in Umatilla and Morrow counties. When the Family Dollar in Pilot Rock is completed next year, it will complement its other location in Boardman. Family Dollar’s competitor, Dollar General, has been even more aggressive in the area. Dollar General intends to replace Pilot Rock’s old hardware store with a dollar store on top of the stores its already built or in the process of developing in Hermiston, Umatilla, Milton-Freewater, Irrigon and Heppner.

With the exception of Hermiston, all of the new dollar stores are going in towns with less than 10,000 people. Despite only having 1,328 people, the smallest population in the bunch, Pilot Rock is getting both dollar store chains.

While dollar stores are relatively new to the region, their decision to heavily populate Eastern Oregon is well within their previous expansion patterns.

According to a 2019 CNN Business article, Dollar General and Family Dollar usually target low-income areas across the population density spectrum. Dollar General especially focuses on rural America: about three in four Dollar General stores are in towns with 20,000 people or fewer.

Although dollar stores can bring new jobs and more shopping choices, critics told CNN the chains unfairly compete with locally owned retailers and grocers while failing to offer essential products like fresh produce. Some cities, including Birmingham, Alabama, and Tulsa, Oklahoma, passed laws restricting dollar store growth.

In a response to a request for an interview, Dollar General spokesperson Emma Hall touted the chain’s charitable efforts and its focus on convenience and affordability when choosing new locations.

“We also take demographic trends, competitive factors and traffic patterns into consideration,” she wrote in an email. “We know convenience is a major factor in our customers’ shopping decisions as we generally serve customers within a 3-5 mile radius, or 10 minute drive. We further strive to provide convenience for customers who may not have affordable nearby retail option.These locations were a great fit for Dollar General.”

Family Dollar is owned by Dollar Tree, another chain of dollar stores that has locations in Pendleton and Hermiston.

A statement from Family Dollar and Dollar Tree also highlighted the stores’ charitable efforts while adding its stores work in concert with local grocers and vendors to help cover “food deserts” where fresh produce and protein are scarce. In some areas, Family Dollar is piloting frozen meat and produce sections.

“We understand deeply the concerns of many local officials regarding the changing nature of our shared communities across the country, and — as part of those communities — we are always looking for ways to help our neighborhoods be healthier, stronger, and safer,” the store states.

For all the national contention, Local business and government officials aren’t sounding the alarm.

Dave Meade, the manager at Columbia Harvest Foods in Umatilla, said he thinks his store can find a niche and co-exist with Dollar General. Walmart is only a few minutes away by car in Hermiston, and it remains Columbia Harvest Foods’ main competitor, Meade said.

“Walmart is still the 800-pound gorilla,” he said.

Some Heppner residents were concerned enough about Dollar General to began circulating a petition before the store bought any property in town. But Heppner City Manager Kraig Cutsforth said protests died down as the store came to fruition. In his view, Dollar General is easy to work with while providing jobs and replacing a recreational vehicle park that drew community complaints.

Back in Pilot Rock, city recorder Teri Bacus said the only local retailer the dollar stores might affect is the Pilot Rock Market, the local grocery store. Bacus said she thinks the market still can thrive by focusing on what the dollar stores don’t have: liquor and fresh meat.

Meade, Cutsforth and Bacus all said they hoped the dollar stores would allow residents to spend more money in the community and spend less time shopping in Pendleton, Hermiston or elsewhere.

While the dollar stores are in development, local business has picked up. A new bar called The Vault Tavern has opened up in the old Archie’s Restaurant space and a new hunting store has opened right next door on Main Street. Bacus said Pilot Rock is working on an economic development plan with Eastern Oregon Business Source and expects all of these businesses to be a part of the revitalization effort.

Janelle Hampton and her family bought the old schoolhouse several years ago and are in the process of turning it into a venue and gathering space. She was the one who sold the neighboring space to Eyes North to make way for Family Dollar.

Much in the same way pioneers on the Oregon Trail used the Pilot Rock geological formation as a landmark on their journey, Hampton said the city of Pilot Rock could use the schoolhouse, local attractions and a couple of dollar stores to bring in visitors on their way to the Blue Mountains or California.