On the 100th day in office, New York Mayor Zohran Mamdani is moving in earnest to push socialist policies. He said he would open the "budget grocery store" he pledged during last year's campaign next year.
According to the Washington Post (WP) on the 13th, Mamdani said in a speech the previous day marking 100 days in office, "I was elected as a democratic socialist, and as a democratic socialist I will run the city," adding, "Socialism is a choice to fight for all New Yorkers."
In that regard, Mamdani said he would continue to pursue plans to open five city-run grocery stores. The first store is set to open in East Harlem next year. He said the city grocery store plan he first proposed during the campaign would help ease the problem of soaring grocery prices.
The first store is slated to go on city-owned land next to a food hall in East Harlem in northern Manhattan. In East Harlem, about 40% of residents receive public assistance benefits. Several grocery retailers, including Aldi, Target and Costco, currently operate there. Mamdani plans to open one city-owned grocery store in each of New York's four other boroughs by the end of the term in 2030.
He said, "In our store, even eggs and bread will be cheaper, and buying groceries will no longer be a burden," adding, "Some say a city-owned corporations cannot be run properly and that the government cannot compete with big companies, but my answer is simple: I expect competition."
But Mamdani's "budget grocery store" plan is drawing backlash from the retail industry. Earlier, grocery store businessman John Catsimatidis said he would close his chain "Gristedes" if Mamdani were elected. Last year, members of the National Supermarket Association also said they were concerned the plan could harm private corporations and workers.
In addition, over the past few years, public-support grocery stores were piloted in several places, including Illinois, Georgia and Wisconsin, with poor results. In Kansas City, Missouri, a grocery store that opened in 2018 with city support posted large losses and closed last year, and a store in Florida also shut its doors in 2024 after failing to withstand competition from a nearby Walmart.
There is also no shortage of predictions that Mamdani's plan will be difficult to realize in practice. WP said, "In theory, a government-run grocery store can set lower prices by negotiating with suppliers and reduce expense by easing profit pressures," but added, "They often struggle to compete with large retailers that can buy in bulk."
According to CBS News, a Spokesperson for the National Supermarket Association said, "With only five stores, it will be hard to serve all 8 million residents," adding, "Cooperation with existing businesses is necessary."
Even Mayor Mamdani has not clearly explained the specific opening expense for the city grocery stores or how products would be supplied at prices lower than the market. In an interview with the progressive outlet "More Perfect Union," he only noted that New York City could contract with private firms and require that subsidies be passed directly to consumers in the form of discounts.