Zohran Mamdani, a candidate with the potential to win New York City’s Democratic mayoral primary, has put forward a plan to create a network of city-run grocery stores.
While this idea has generated significant attention, it has also raised eyebrows among local business owners and consumers.
Hamza, who owns Appleton’s Marketplace on West End Avenue, expressed understanding of Mamdani’s motivations, stating, “The cost of living is only getting higher. If these stores were limited to those on lower incomes, then I’m not necessarily opposed.”
Despite this, Hamza remains unconvinced that the city could effectively implement such a scheme.
“His intentions might be great,” he remarked about Mamdani, “but it could easily result in corruption and money laundering, like we’ve seen in some of the other agencies.”
When questioned if Mamdani’s plan might pose unfair competition to his grocery business, Hamza reiterated that it could be acceptable if the city stores cater solely to low-income residents.
Interestingly, he suggested that these stores might even alleviate some of his financial burdens, given the persistent issues of theft and threats his staff face.
However, the Mamdani campaign has yet to clarify whether access to these government-operated grocery stores would be limited to low-income shoppers.
This ambiguity points to a greater issue: the establishment of municipal grocery stores may not resolve the root causes leading to grocery store closures in certain city neighborhoods.
As noted by Steven Malanga, crime and poverty are significant underlying factors, with rampant shoplifting contributing to the decline of retail establishments in recent years.
Proponents of the city-owned grocery stores argue they could offer lower prices by cutting profit margins.
Nevertheless, it’s important to note that private grocery chains typically operate on razor-thin profit margins, averaging just 1 to 2 percent.
A woman affiliated with a food cooperative in Lower Manhattan expressed skepticism about the viability of Mamdani’s plan, questioning how it would significantly reduce prices when her nonprofit’s prices are comparable to those of standard grocery stores.
While eliminating rent by utilizing city-owned land could theoretically help keep costs down, concerns arise regarding the city’s lack of experience in retail operations.
Mamdani would also face challenges in achieving the economies of scale that larger retailers benefit from, along with the absence of established supply chains.
Carlos, a bodega owner in Hell’s Kitchen, remarked, “He’s trying to be Amazon, but New York just doesn’t have that capacity at this point.”
Many individuals I spoke with echoed worries about potential corruption linked to the plan.
A clerk at Gardenia Deli in midtown remarked that city-run groceries would likely just “line the pockets of those in charge.”
Another customer commented that such operations would likely be “as well-run as the U.S. Postal Service.”
Mamdani’s campaign website indicates that the city currently spends millions subsidizing private grocery operators, noting their lack of obligation to accept SNAP benefits.
This raises a critical question: what specific issue is Mamdani truly aiming to address?
If the intention is to tackle “food deserts,” which may or may not necessarily exist within New York City, further analysis is essential to identify existing barriers.
Are the challenges due to crime, insufficient available land—which might be remedied through zoning reform—or primarily low incomes?
Mamdani appears to presuppose that corporate greed is at the root of the problem and tailors his solution to fit this assumption.
However, as grocery stores are not typically generating significant profits, it is unclear whether his plan would result in noticeably lower prices for consumers.
Any savings from eliminating rental costs could easily be negated by supply chain inefficiencies and vulnerabilities to theft and criminal damage.
To sustain such an operation, substantial taxpayer subsidies would likely be necessary.
In conclusion, the prospect of a poorly managed city-funded grocery store raises valid concerns, and skepticism from New York’s small-business owners and the community at large is undoubtedly warranted.
image source from：city-journal
