Marketplace All-in-One Do city-owned grocery stores work?
Nov 18, 2025
Nancy Marshall-Genzer, a correspondent specializing in international lending, and Carla Javier, a reporter focused on city-backed grocery stores, delve into the innovative concept of city-owned grocery stores proposed by New York City's mayor-elect. They discuss the potential for lower prices due to a lack of rent and tax expenses. Past experiments in other cities reveal mixed outcomes, raising questions about affordability and efficiency. Additionally, the conversation touches on rising utility costs and the implications for economic stability.
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Public Ownership Can Cut Grocery Costs
- City-owned grocery stores can lower prices by removing rent, property taxes, and profit margins from costs.
- Models in other cities show potential savings around 5–10% and larger discounts in commissary-style operations.
Commissary Comparison Shows Bigger Savings
- Nevin Cohen compares municipal supermarkets to military commissaries that deliver discounts through scale and noncommercial aims.
- Commissaries offer 15–25% lower prices, suggesting public models can yield deeper savings than the 5–10% estimate.
Kansas City Store Closed After Crime Impact
- A city-backed grocery in Kansas City closed after nearly a decade due to collapsing customer traffic tied to neighborhood crime.
- That closure highlights local conditions can sink publicly supported stores despite municipal investment.