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When Zohran Mamdani sailed to a surprising but decisive victory in New York City’s Democratic mayoral primary last month, he did so propelled by a platform laser-focused on making the country’s largest city more affordable for working people. Among his proposed policies for achieving that vision – which include free childcare and a rent freeze for tenants – is the proposal to create a network of city-owned grocery stores focused on keeping food prices low rather than on making a profit.

“Without having to pay rent or property taxes, they will reduce overhead and pass on savings to shoppers,” Mamdani said on his website. “They will buy and sell at wholesale prices, centralize warehousing and distribution, and partner with local neighborhoods on products and sourcing.”

The proposal seems to be resonating. Two-thirds of New Yorkers polled said they support the creation of municipal grocery stores, according to an April 2025 report published by the Climate & Community Institute and Data for Progress. Another 85% said they were paying more for groceries this year than last, and 91% were concerned about how inflation is affecting food costs. (While inflation is one factor contributing to sticker shock at the cash register, US food companies’ profits have soared as they have continued to raise prices faster than both inflation and wage increases.)

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[-] megopie@beehaw.org 16 points 6 days ago

Even if the stores them selves end up having issues, or if most people choose to continue to go to private stores, the presence of a public option with competitive pricing will anchor prices at other stores.

Specifically, I could see it undermining any attempt to implement software based price fixing among the private grocery stores, where they all use a common piece of software to “recommend prices”, with the software set up to increase prices at an even rate among all the clients so that none of them are undercutting each other. It should be illegal, but since technically no one at the companies are communicating about it, it falls in to a legal grey area. I haven’t heard about grocery stores doing this yet, but it’s been well documented in everything from real estate and renting to frozen potatoes.

[-] Powderhorn@beehaw.org 9 points 6 days ago

We must crush Big Frozen Potato.

[-] wallybeavis@lemmings.world 4 points 6 days ago

hmmmm frozen potatoes...brb, I just remembered I've got fries in my freezer

To @megopie@beehaw.org's point, there is almost no competition where I live. There's Kroger, and if you're very lucky an ALDI. A decade ago there were half a dozen within a 30m drive of my home. I remember going through all the Ads, putting together a list of what was on sale where, and setting out early Saturday morning to hit 2-3 of them. Today it's all Kroger stores everywhere, and they set the prices based on the the lack of competition

[-] megopie@beehaw.org 4 points 5 days ago

A lot of supermarkets like Kroger are particularly bad about pricing. They will stock stuff that barely anyone buys, lose money because the case goes bad long before it sells out, and waste space on super obscure goods, necessitating a larger floor plan. Then they take the cost of that and spread it over all the items that move regularly, pushing up prices for everyone.

Why do they do this? Because it helps kill competition. If they didn’t have the obscure item, the one customer in a 1000 who wants it might go to a second store, and they might buy some of the quickly moving items there as well. By incentivizing shoppers to buy everything at one store, they are able to kill off smaller competitors that can’t afford to take losses or are unwilling to stock superfluous items.

Aldi’s is a fairly good example of a store that doesn’t do this. They tend to avoid stocking products that won’t move quickly. Keeping the inventory, and thus floor plan, small saves them money and prevents them from having to spread costs over staple goods. This model is much more common in Europe, but in the US, particularly in suburbs where the density is super low, it easier for them to absorb all the local demand and thus push out smaller more affordable stores.

this post was submitted on 25 Jul 2025
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