Mamdani proposed the city-owned stores not have to pay rent or overhead taxes, leading to lower consumer prices. They would buy and sell groceries at wholesale prices, centralize warehousing and distribution, and partner with local neighborhoods to source products.
Grocery stores don’t have a lot of margins, so this move won’t reduce prices by much or at all. What it will do is improve low income areas the “market” has left alone to improve the availability and quality of nearby food. I’ve heard a lot of people skeptical of the “lower prices” part, when I think the food desert part is a much more important part of the plan tbh.
They have low margins because they have high costs (like rent, logistics and insurance stuff), so if those get reduced then they can lower prices by exactly that amount while keeping the same margin.
Thats a great idea actually
City-owned, does this mean all ‘profit’ goes back into the city and the business is not operated in a way to maximize profit?
Grocery stores don’t have a lot of margins, so this move won’t reduce prices by much or at all. What it will do is improve low income areas the “market” has left alone to improve the availability and quality of nearby food. I’ve heard a lot of people skeptical of the “lower prices” part, when I think the food desert part is a much more important part of the plan tbh.
They have low margins because they have high costs (like rent, logistics and insurance stuff), so if those get reduced then they can lower prices by exactly that amount while keeping the same margin.
I agree, socialism is a great idea.