New dollar stores blocked as Desert Hot Springs pursues broader retail growth

DESERT HOT SPRINGS, Calif. (KESQ) - The City of Desert Hot Springs has approved a temporary ban on new dollar stores, a move city leaders say is aimed at encouraging more business diversity and attracting additional retail options for residents.

The decision has sparked mixed reactions throughout the community, where some residents say dollar stores remain an important source of affordable shopping, while others believe the city needs larger retailers and more variety.

“Not enough... I frequent this store daily,” one resident told News Channel 3 when asked if the city already has too many dollar stores.

City officials say the moratorium is not intended to eliminate affordable shopping opportunities, but rather to create room for other types of businesses that residents have long requested.

“Maybe just a couple but leave the dollar stores alone because it’s more affordable for the economy,” another resident said.

Others say there is room for both discount stores and larger retailers.

“I don’t think it has too many but I think big-box stores would be good as well,” another shopper said.

Some residents pointed to the lack of major retailers within city limits, saying they often have to travel to neighboring cities for larger purchases.

“Any big stuff you need you can’t get right here, you have to go always to Cathedral City,” one resident said. “It would be nice to have a Walmart or a big store.”

According to city officials, Desert Hot Springs currently has five dollar stores serving its roughly 32,000 residents.

In a statement to News Channel 3, a city spokesperson said:

“The intention is not to take away affordable shopping options, but rather to explore opportunities for additional services and businesses that residents have also requested over many years.”

The city acknowledged that attracting major retailers remains highly competitive, but officials say Desert Hot Springs has changed significantly in recent years and is now better positioned for future development.

“Desert Hot Springs today is not the same city it was years ago,” the statement said. “The city has experienced significant growth and positive transformation.”

Officials added that the city is working to attract investment by streamlining development processes, identifying development-ready commercial sites and improving infrastructure.

Some residents support the city taking additional time before allowing more dollar stores to open.

“I think that taking time to make a decision is a good idea,” one resident said.

Still, others say they simply want to see continued growth and more shopping choices overall.

“I think they should put as much stores as they can,” another resident said. “The more the merrier.”

The moratorium will remain in effect for 45 days, though city leaders could extend it for up to two years.

Stay with News Channel 3 for more.