How new openings sustain the income gradient in unhealthy retail: evidence from a statewide establishment panel, Rhode Island, 2016-2025

Unhealthy retail outlets, including liquor stores, bars, convenience stores, and fast food, are concentrated in lower-income neighbourhoods. This is a well-documented cross-sectional fact; the process that sustains it is not. A neighbourhood can hold more because more open there or because those already there survive longer, and these point to different responses. We assembled an establishment-level panel of every business in Rhode Island from 2016 to 2025 (480,923 geocoded establishment-years across nine annual cross-sections), following the same outlets year to year, and classified and counted unhealthy outlets by census tract. We estimated the tract income gradient three ways (negative binomial regression, a concentration index, and a Bayesian spatial model), tested its stability, and decomposed it into openings and closures. The gradient was strong, stable, and robust: about 30 percent fewer unhealthy outlets per resident per standard deviation of higher income, with racial composition and poverty no longer associated once income was included. It was reproduced through entry, not survival: closures were even-handed across income, while new unhealthy outlets opened about 2.2 times as often per resident in the lowest-income tracts as in the highest. This entry was not unhealthy-specific: new healthy food retail tilted toward lower-income tracts at least as strongly, and the unhealthy share of openings did not rise as income fell. The standing burden was nonetheless dominated by convenience stores and off-premise alcohol. Efforts to reshape the retail environment will have more leverage on new openings than on the existing stock, through instruments defined by outlet type.