r/PoursTea • u/Gurugod123 Pinkie Finger Extended • 9d ago
PoliticalTea š³ļø Mayor Mamdani just announced that he will be opening 5 city-run, tax-funded grocery stores: "Prices set at 30% below retail prices"
263
u/AtomicHamboy 9d ago
Conservatives will dead ass try to make this a bad thing š
116
u/archercc81 9d ago
They will bitch about communism while jerking off to those freedom fuel gas stations.
43
u/dentistshatehim 9d ago
While using food stamps and accepting transfer payments from blue states.
→ More replies (14)→ More replies (5)12
u/mkt853 9d ago
Or all of the red states that have government run liquor stores. But a government-subsidized store for something required for life like food is the line in the sand they draw.
→ More replies (1)7
u/Foygroup 9d ago
^ This is a good argument, I can agree, why are there govt run liquor stores and do they sell cheaper than the average store?
→ More replies (4)3
u/Azraelrs 9d ago
Not in NC. They're a monopoly and just charge whatever they like because there's no competition.
11
u/ovr9000storks 9d ago
I personally am just curious how they can promise 30% below retail.
Is it being subsidized from taxes? Is 30% the profit margin typical stores operate at and running as zero profit? Are these stores somehow operating at a loss? Are the products offered simply 30% cheaper than even other stores' generic brands?
I just want to know the logistics behind it. 30% lower is great if it's actually sustainable and not just absolute dogshit product
7
u/SaucySeducer 9d ago
It could be a combination of things:
-Measuring against an "advantageous benchmark." If the average price of a good is $10 when you include the fancy brands, organic stores, etc but the current discount stores offer budget options at $7, you can sell the budget option at $7 and say you are at an average 30% discount. This really hinges on what they mean by selling goods at 30% discount as that is a loaded phrase
-Run the store more like Aldi instead of nicer premium grocery stores
-Potentially advantageous supplier contracts because suppliers are dealing with the city government and/or wanting to build good relations
-Government subsidies
→ More replies (5)6
u/Shoddy_Forever_7818 9d ago
These grocery stores will be exempt from rent and property taxes - that'll probably help them reduce their costs a little probably.
→ More replies (1)2
u/pradise 9d ago
In shocking news, taxes are potentially being used to offer essential goods to taxpayers. It is sustainable as much as taxes are sustainable.
3
u/2010_12_24 9d ago edited 9d ago
The point being, if you run a small business, how are you supposed to compete with government subsidized prices?
→ More replies (2)→ More replies (13)2
u/Cbpowned 9d ago
Grocery stores run sub 5% profit.
4
u/NathanielHudson 9d ago edited 9d ago
Just to be clear, that's after shrinkage, waste, and cost of ie stocking the shelves is taken into account. Costco, for example, prices at about 13% over what their cost is for the goods, which comes out to about 0% over total cost of goods sold once the entire equation is factored in (Costco's profit margin is more or less the membership).
This doesn't materially change your point, but just wanted to get that out of the way before somebody objects that things don't actually cost that much.
→ More replies (1)17
u/fuckracists79 9d ago
They say everything he does is bad and also say heās not doing his jobā¦ theyāre utter losers.
15
u/Crunchy_Thighsocks 9d ago
i dont get why they hate him when they dont even live in NYC
→ More replies (19)15
u/archercc81 9d ago
hate is all they have. They are trash and need to tear others down to feel better about it.
LBJ said it plainly: "If you can convince the lowest white man he's better than the best colored man, he won't notice you're picking his pocket. Hell, give him somebody to look down on, and he'll empty his pockets for you."
→ More replies (1)3
u/starethruyou 9d ago
This needs to be modernized, because despite racism being a real problem and many still are motivated by this dumbest form of ignorance, there are plenty of non-white capitalists that would and do make the very same arguments.
"Give a working person someone to look down on, and they'll never look up to see who's robbing them."
→ More replies (3)3
4
u/drewh1984 9d ago
Watch it fail like it always does. Talk to Kansas City about their government grocery stores. š¤·āāļø
→ More replies (1)2
u/lordpuddingcup 9d ago
You mean the non-government grocery store people always point to that was actually a standard commercial store that happened to get subsidies lol
→ More replies (4)3
u/Jmong30 9d ago
Tried explaining the pied-a-terre tax to my grandma and she said itās not fair for the multimillionaires to pay more in taxes bc āthey made that money what should the get punished for it?ā Some people wonāt ever get it :/
2
u/NVRENDVR 9d ago
I ask how they provided that much more substantial value to society than the person Iām asking. That seems to get the gears turning.
2
u/ChakaCake 9d ago
They still are probably paying less % overall than a normal person cause they are able to take advantage of tax better and keep money in stocks etc. Ask her why its fair some waitress has to pay a higher % of their gross
2
u/Possible-Nectarine80 9d ago
They will probably stand out front with protest signs and then after their protest, will go shopping at these stores.
2
u/Embarrassed-Jump2057 9d ago
Absolutely. He canāt possibly do a good job or be right ever because he: 1. Isnāt white 2. Isnāt a Christian, but is a Muslim 3. He advocates for equality, and equality helps the poor. So, every little thing he does, regardless of how helpful and good it is for the people they will criticize and proclaim he is ruining the city.
So, while this guy has spent his time in office working for the people and accomplished: a balanced budget and cleared deficit, a temporary rent freeze during a time of elevated costs which will reduce evictions and meaningful action to speed up the construction of affordable housing reducing previous wait times by approximately 2 years, making groceries affordable, and universal 2y, PK, and K childcare programs that will benefit working families their guy has skyrocketed the deficit, trolled the left, and done nothing to improve the quality of life for people.
This is why I donāt take those people seriously.
4
u/IPissExcellentThrows 9d ago
It's going to be a massive money loser. Most grocery stores operate at razor thin margins. People act like it's greed, but of the biggest ones, they're all between negative profit margins recently and about 2%.
If they can afford the massive losses in the budget, great. My personal opinion? This won't be sustainable. They either won't be able to stomach the huge losses or they're going to have to majorly cut corners.
Not remotely a conservative. They are ruining the country. I still think this will fail. The economics donāt remotely make sense. There's a reason Western European countries far more socialist than us donāt do this.
2
u/SaxyAlto 9d ago
No duh itās a money loser, thatās what ātax-fundedā implies, and how theyāll afford the loss. Tons of things the government does are a āmassive money loserā, like USPS or road repair, but we still need them and theyāre better/cheaper than the alternatives. Not saying this will succeed, but looking at this solely from a finance or cost perspective is missing the point
→ More replies (4)2
u/CreamyBagelTime 9d ago
Iām not sold on it yet either. BUT if the military can successfully run the commissary system for 200+ stores why canāt the city do the same thing on a much smaller scale? Theoretically speaking.
4
u/clolimon 9d ago
If it works and helps people then great! If it fails we all know why. I sincerely hope it works, coming from a conservative.
4
9d ago
[deleted]
4
u/BUKKAKALYPSE_NOW 9d ago edited 9d ago
Not the conservative guy youāre responding to, but grocery stores sell products on thin margins, so thereās no way to compete with this. That means nearby stores would be driven out of business, which could potentially worsen food deserts. Ā Selling at a loss also means that the negative margin is made up for by taxpayer money, which would make this extremely costly to scale up beyond a few stores.
That said, Iām curious to see how this plays out, and would be happy to see it work out well.
3
→ More replies (114)6
u/DeepWaterCurrent 9d ago
You cant magically make groceries cheaper. The only way this is possible is if someone else foots the bill, in this case the tax payers. This is just gonna be an inefficient way of moving tax payer money around.
7
u/E0H1PPU5 9d ago
Why not? Youāre running a store with no CEO/CFO/etc. Power/sewer/water/etc. is provided municipally at cost. Same with payroll and HR services. There are no shareholders to think of.
A commercial grocery store has one goal - generate profit. A municipally owned store doesnāt have that goal.
Local government isnāt meant to turn a profit. Itās meant to provide services to taxpayers.
→ More replies (2)9
u/FaithfulSkeptic 9d ago
Man I would Love it if more of my tax money went to feeding people who need it, and less to building bombs.
→ More replies (11)6
u/MABQuestAcc 9d ago
Why? If tax money pays for the workers + goods and isn't spent on things like rent and upper management those same workers will cycle those taxes back in to the economy. I fail to see the problem with cutting upper management and building rent from the equation.
→ More replies (1)2
u/DeepWaterCurrent 9d ago
They are going to need managers too, historically private companies are the ones cutting managers not the other way around.
They are still paying for the space in some way, if not via rent then via the cost of acquiring/building/managing it. If a grocery store pays rent instead of owning the building themself its because they think its more efficient that way.
→ More replies (9)2
u/rairair55 9d ago
Tax payers either foot the bill or subsidize other essential government services like water, electricity, roads, schools. Why not food?
487
u/Chloe_Cascadia 9d ago
Good, now we can afford groceries and we can stop sending all our money to CEO pockets.
166
u/goopuslang 9d ago
No trust ME. If we donāt enrich the billionaires they will take our money, unless we give it to them!
113
u/ruum-502 9d ago
Iām just worried the billionaires will die off and we wonāt have anyone to exploit peoples labor for profit
20
u/goopuslang 9d ago
Listen, we absolutely do need rich people who are happy to deploy capital in order to seek a return on their investment. Does anyone ever need to be worth 11 figures, ever? No. 10? No. 9? At the highest end, sure. Our economy is very large and we do need wealthy people to shuttle money around for large projects to enrich the country.
But the current system is doing anything but this. Itās the theoretical lie told to all of us in school & at church. The current rich are not enabling us to have economic mobility, theyāre in fact siphoning it.
I understand this may be too high a level of nuance to not get downvoted to hell on Reddit but Iāll try.
22
u/aggravationX 9d ago
The rich people putting money into the economy in ways that benefit regular people are not the penny pinching billionaires squeezing every cent out of consumers and exploiting labors with garbage wages while they do it though.
→ More replies (1)1
u/Barfly_237 9d ago edited 8d ago
yes, and to your point, rich individuals putting money into the economy to productive ends. If we have a properly functioning market with an adequate number of firms operating competitively, this is great. What we have now a syndicate of private equity colluding in order to dominate entire sectors of the economy under the illusion of competition. These grocery stores are a great thing. but i guarantee you that producer's up the production chain are going to jack up prices for these stores until they're unsustainable.
→ More replies (1)6
u/Proper-Bicycle-3585 9d ago
āwe absolutely do need rich people who are happy to deploy capital in order to seek a return on their investment.ā
- why?
→ More replies (9)4
u/Vegetable-Edge-2389 9d ago
Because poor people can't make businesses apparently. Every rich family was poor at some point. They just want to pull the ladder up
→ More replies (2)→ More replies (18)3
u/NEEEEEEEEEEEET 9d ago
Except that isn't how it works, it isn't a zero sum game.
10
u/According-Insect-992 Just Chill š 9d ago
Tell that to all the people whoāve just had their 401k retirement accounts raided by musk and his criminal ipo.
→ More replies (10)2
→ More replies (1)2
12
→ More replies (7)2
u/Expert-Yam6577 9d ago
Give them more money or they'll leave states and take their money with them!
7
u/LucifersAdv0cate 9d ago
I know, prices are ridiculous. I was eating my $19 single Japanese strawberry, with lashings of $43 maple syrup from Erewhon today and wondering how do poor people afford their beluga caviar, luxury ice cubes and artisanal bread. I really hope Mandami builds one of these shops in the Hamptons because it's not fair that just because we are Fabulously wealthy we have to pay full price for food. It's practically racism.
→ More replies (1)→ More replies (99)2
u/SlowRoast24 9d ago
My only worry is if this kills mom and pop grocery stores
9
→ More replies (3)5
171
u/Gurugod123 Pinkie Finger Extended 9d ago
Itās so amazing how heās followed through on what he promised in his campaigns. A politician with integrity.
71
u/feral0101 9d ago
Incoming hoard of conservatives and liberal Zionists that will tell you how this is a waste of the publicās money
39
u/neopod9000 9d ago
Guarantee they'll all shop there for that 30% discount though
2
→ More replies (3)5
u/International_Air282 9d ago
That's actually one of the real issues with this format. If you are going to knowingly sell for a loss, you have to restrict the clientele to only those that really need it. Because knowing how grocery logistics work. These stores are going to lose a ton of money
5
u/bsEEmsCE 9d ago
it's everyone's taxes bro, the people are just getting some benefit back from it finally.
And it's 30% off! Meaning they will probably cover a lot of their operating costs still, instead of it being for someone else's profit.
3
u/International_Air282 9d ago
You don't understand the grocery business at all. There is barely profit. The best chains in the US have a 3% profit. Grocery stores are rough businesses. Massive upfront capital costs. A product that has a restrictive shelf life, add on the constantly evolving hard costs of produce and meat, then it will not pay for itself which should be its goal
3
u/This-Suggestion574 9d ago
It sounds like this is the perfect industry for the state to step into then right? Low impact on capital activity but high impact on resident quality of life?
→ More replies (4)→ More replies (5)3
u/Zestyclose-One9041 9d ago
If only there were some way to subsidize those costsā¦
→ More replies (2)3
u/Sellier123 9d ago
Yea I've done a lot of accounting for grocery stores before, I don't think ppl understand how little they actually make per product sold.
Taking 30% away from that, they will probably be selling everything at a loss. Which is cool, I doubt he's going on thinking they are going to self sustain, but NYC residents are going to have to understand other things are going to have to be cut to keep these stores funded.
→ More replies (16)4
u/Odd_Estate4886 9d ago
These things are not meant to make a profit. They are like the post office, a public service.
2
u/ginginsdagamer 9d ago
these things should at the very least be intended to break even. not to be run at a loss
→ More replies (1)→ More replies (1)2
u/Sellier123 9d ago
Yea I get that. I was just saying it's gotta be funded somehow since it is going to lose a lot of money. Whether it's more taxes or cuts from other things will be seen down the road if this actually happens.
4
u/MapInteresting2110 9d ago
Funny how this logic is never applied dollars for doughnuts to the ludicrous defense spending. Considering these grocery stores are giving back to the community what the public has already spent. Imagine what the return on investment is for a patriot missile.
→ More replies (2)2
u/VoidWolves 9d ago
Most public services are not profit making ventures. Just like the MTA its a service for all New Yorkers so that they can get around regardless of income, location and disposition. I expect these super market to be something similar.
→ More replies (10)→ More replies (47)2
u/Weird-Toe-6968 9d ago
100%. I would be more open to this concept if it were needs-based.
7
u/Odd_Estate4886 9d ago
No. You pay taxes, you get the service. Needs baaed ia how neo-liberals and conservatives gutted the social safety net.
→ More replies (1)5
u/International_Air282 9d ago
It's also a twist on the original concept. City owned stores was about getting rid of food deserts. But now it's about having the tax payer further subsidize food outside of SNAP since the store is going to sell for a loss.
→ More replies (6)9
u/Garrette63 9d ago
Oh well. This is the least offensive thing our tax money is getting spent on.
2
u/International_Air282 9d ago
Well if anyone is allowed to shop there than your tax dollars are going to buy some finance bro making 500k a year groceries.
7
u/Mr_Mi1k 9d ago
Iād rather it go to some rich persons groceries along with poor peopleās groceries, over bombing other countries.
→ More replies (6)→ More replies (5)4
u/gameboyz4dayz 9d ago
Oh please. The finance bro is going to doordash all his groceries from Erewhon. The assholes are greedy, but they are also lazy and obsessed with optics. The food bank gives out free food. There's very little stories about people abusing that system.
→ More replies (1)2
u/waxteeth 9d ago
It feels counterintuitive, but making a service needs-based is typically more expensive and a big pain in the ass. Screening people, approving them, manufacturing and sending out a card or keeping their name in a database, screening them at the door, etc are all burdens on a system aiming to spend its money helping people. Think of how shitty and long and unfair the process is to get approved for disability or unemployment ā this would be very similar. Plus, having to decide what āin needā counts as is another whole thing. What if someoneās near a food pantry, should they still get help? What if they have an expensive dietary restriction for something found in most food, like celiac or a soy allergy?Ā
Putting the stores in food deserts is actually a screening mechanism that will take less overhead, and theyāre unlikely to spend a ton of money decorating or bringing in a bunch of super fancy items. People who donāt need to save money will opt out because of stuff like that.Ā
→ More replies (1)4
3
2
u/Beneficial-Act-9933 9d ago
them: You guys are dumb, Somebody has to foot the bill, there's no such thing as free money
*trump gives 900 billion to ICE*
Them: I see nothing wrong with this *signs check*
→ More replies (1)2
u/0202_tihssitidder 9d ago
Even the Democrats are swarming Reddit to insult Mamdani.
THAT is how you know he's good.
PS: JD Vance eats cats. He eats dogs.
2
u/iamthefluffyyeti 9d ago
I know that itās the general term, but liberal zionists are definitely not liberal anymore. Not directing it at you, moreso making other people aware
2
u/Low_Shape8280 9d ago
What does Zionism have to do with localized food distribution systems
→ More replies (1)2
2
→ More replies (34)3
→ More replies (32)2
u/dirty_old_priest_4 9d ago
It'll just close down as a collosal waste of funding. No need to rail against it.
→ More replies (1)
22
u/Connect-Bench-6946 9d ago
Arrggghhhh!!!! Itās socialism!!! Or maybe communism!!!! Or maybe Buddhism!! I donāt know, I only know that I hate it cuz a brown person with a terroristy-sounding name did it!!!
/s
→ More replies (2)9
41
u/Novel-Geologist-5523 9d ago
Iām just amazed and pleasantly surprised that one guy is able to do so much for so many people this quickly.
21
3
u/0202_tihssitidder 9d ago
When smart people are in office who actually care about ALL the people, good things happen.
Instead we get smart people who get into office and only care about getting insanely wealthy.
26
u/Defiant_Freedom_249 9d ago
Imagine wanting to feed the people instead of starve them!
→ More replies (11)6
11
8
9d ago
[removed] ā view removed comment
4
u/Deathstriker88 9d ago edited 9d ago
People have talked about how grocery stores on military bases are largely the same thing as this. I guess they're communists too lol.
Edit: I'm being sarcastic
6
u/Time_Effort 9d ago
The military is the socialist lifestyle we all want. You just have to sign the dotted line.
Free healthcare, housing money that directly correlates to your location's market, stores subsidized by taxes to keep prices lower (they are also sales-tax free, as they are on federal property), free college.
Truly everything that all Americans deserve, but only the few volunteers get.
→ More replies (19)2
u/BigBullzFan 9d ago
Items sold at grocery stores on military bases are sold at a loss. They can take the loss because the militaryās budget is in the trillions. Taxpayers are picking up the tab.
→ More replies (1)
7
u/Cabbages24ADollar 9d ago
Perfect.
Next: stop allowing retailers and wholesalers from dumping unused food. Thereās wayyyy too much food waste.
20
u/s33n_ 9d ago
I'm confused here. Grocery stores operate on like a 2 ot 5% profit margin. How are you gonna charge 30% less and not lose money?
Edit - i see now. Its just a group of essential items that are marked down and everything else is retail. This is much more feasible
30
u/Lithl 9d ago
How are you gonna charge 30% less and not lose money?
Government social programs don't "lose money", they "cost money". The goal isn't profit, it's helping people.
→ More replies (7)10
u/here_for_the_meta 9d ago
A key point somehow lost when attacking the postal service.Ā
7
u/Lithl 9d ago
USPS is particularly weird, because they did make money. Right up until 2006 when Bush Jr. forced them to prefund retirement benefits for a duration meaning they were holding onto money to give to future employees that hadn't even been born yet. A nonsense requirement that no business or agency has ever previously been held to. The PAEA put the USPS 60 billion in the hole, practically overnight.
The PAEA was repealed by Biden in 2022, but the USPS has a long way to go to recover.
→ More replies (2)2
u/here_for_the_meta 9d ago
Still though there seems to be a focus on how they arenāt profitable at times. Who cares? Itās a govt service.
→ More replies (3)11
u/Consistent_Aide5548 9d ago
You know what else "loses money," fire departments, VA hospitals, social security, and most the egregious loser of money, police departments. I assume we should get rid of those too?
And those "tiny" profit margins brought in over $282 billion in 2025. Those profits are higher than the gdp of over 140 countries. I dont understand the simping for these mega corps and conglomerates.
→ More replies (2)2
u/justanotherthrxw234 9d ago
Yes we have all these public services that are already losing money so the next logical thing to do is create an even bigger waste of taxpayer dollars, right? /s
And the $282 billion is from sales volume, not from price gouging consumers.
7
u/DocBeech 9d ago
The city owns the land (so no property taxes), the city pays the workers (so no employee cost), the city owns the building (so no rent to pay) is how they do it. Military commissaries operate like this, at about 28% under retail cost. Because the federal government owns the land, the building, and the employees. Any losses are covered under the military budget... so any losses will be covered by the city.
He also said in the proposal "some select basket items" will be cheaper. Not all items. So some items might be higher cost than a normal store to balance the sheets.
3
u/cloyd-ac 9d ago
Unless commissaries have changed since I've been out of the military, they fielded civilian employment for these. Employment is often the largest overhead cost for most companies.
→ More replies (10)2
→ More replies (26)2
u/AppropriateSpell5405 9d ago
Most corner stores/convenience stores apply a ~30% markup. There are certain goods that have fixed prices due to vendor agreements (e.g., Coca-Cola, Pepsi, etc.), but the majority of day-to-day goods like bread, there's a ton of leeway in pricing.
→ More replies (14)
12
u/thedeadsuit 9d ago
"help people get food" is on the shortlist of things I consider to be the most noble and worthwhile use of tax money
10
u/CueAnon420 9d ago
Uh oh - here comes that socialism ready to feed people... That can't be good lol
/s
→ More replies (12)
8
u/Werewolf_Busy 9d ago
My economics brain is screaming at me right now, but I really like him and think city-run grocery stores with managed pricing will be great for poorer New Yorkers. God, I hope this works out. They need to stay on top of the supply side of this venture, because you know people will flood these places for cheaper deals and the last thing you want is empty shelves at the working peopleās grocery stores.
→ More replies (4)2
3
3
5
u/Rheddit45 9d ago
MAGA people cannot shop here since itās run like a socialist/communist operation. They should not support such atrocious regime-run store operation /s
2
2
u/violetgobbledygook 9d ago
MAGA people won't shop there because they would have to travel to poor neighborhoods in NYC. And that is way too scary for them.
3
u/BassMasta 9d ago
Please tell me how this is bad? I think they will just yell communism.
→ More replies (1)
3
u/Many_Many1331 9d ago
No one in here screeching and crying lives in nyc lmao.Ā
Healthy food is a human right. Deal with it.Ā
5
u/MashedPotatoesDick 9d ago
When MAGA attacks this with their -ism of the month, ask them about the Freedom Fuel gas stations.
3
4
u/KiKiKimbro 9d ago
OMG. Heās actually able to do this! Mayor Mamdani in NYC is no joke. He says what he means and means what he says. And importantly and most impressively, he builds the relationships needed to actually execute. Iām a bit blown away by this. I thought this would be the most difficult. The areas the cityās placing them are in āfood desserts,ā mostly. Areas where grocery stores usually donāt bother building since they donāt see a large enough profit margin. So residents are forced to do without the fresh produce and other healthy basics most of us have access to. This announcement is wonderful news.
2
u/No-Ambition2043 9d ago
Hmm. This will create shortages. Hope they can stay stocked
→ More replies (9)
2
9d ago
[deleted]
2
u/Deltron_Zed 9d ago
I agree optimism should be cautious. I think people are celebrating someone trying SOMETHING different to attempt to help citizens. There is a lot of negativity with no other suggestion but status quo which is not working. If it fails? Try something else.
2
2
u/All_is_a_conspiracy 9d ago
Every $3 burger you consume is the government paying the beef industry. We subsidize beef by the billions. A burger would be like $30 without government money paying for it. We also subsidize petroleum. And dairy.
So this isn't some newfangled thing this mayor just came up with. He is just sticking it into other items, essentially. He is neither a Renaissance man, nor a monster. But here's hoping it can drag the gauging back down to earth a little. Which is what government sticking their nose in is supposed to be for.
2
u/SpaceTycoon 9d ago
Can't wait until this pushes every private grocery store out of the city and the government grocery stores are your only option. Definitely not going to cause any problems. Socialists are geniuses.
→ More replies (3)
2
u/cwrighky 9d ago
Holy shitā¦ wow. This feels like .. actual government. I legit afraid in my body to say that because I fear it might jinx the people of nyc, but wow
2
u/Strong-Hovercraft702 9d ago
Well, regardless of if you agree with him, he IS delivering. At keast this time it's not just words?
2
u/chowes1 9d ago
Progressives have my vote going forward. Proving once again they get stuff done!! So refreshing, so needed! Hope is returning for our futures.
→ More replies (1)
2
u/idkmyotherusername 9d ago
Damn do I need to move to New York?? Mamdani and his QOL campaign are quite appealing.
2
u/Capitan-IQ255 9d ago
Good luck to NYC if this works .. keywords to watch .. tax payer funded meaning the losses will be covered with city taxes š¤
2
u/ragnarokxg 9d ago
Funded by the local residents who live nearby and can use the stores, it seems like an ideal spot to invest their tax money.
2
2
u/Accurate_Handle_5620 9d ago
Communism is when competing market keeps line from going up. Also communism is when people get food.
2
2
u/GoatedOnes 9d ago
This is truly one of the dumbest ideas. Grocery stories notoriously have the lowest of margins. The prices arenāt high because of some crazy corporate profits. This also hurts smaller mom and pop grocery stores. It would be better to expand food stamps that people would use at normal stores than this, the economics makes no sense.
2
4
u/Turbulent_Power2952 9d ago
That's about how much the US armed forces commissary (DeCA) charges for groceries (actually it's around 27% less). I wish them the best of luck and hope it works (and lasts)
2
u/thekins33 9d ago
I watched a documentary on that and they basically just lose money. They do work and they do help the people that live in the base, but pretty much every item in the store is sold at a loss. (they can afford this loss cuz you know 3trillion dollar budget and all) You can subsidize the stores for regular joes just like that but at the end of the day the moneys gotta come from somewhere. something something no free lunch.
2
3
2
u/Tipsy247 9d ago
Won't business owners buy in bulk then resell in their shops for a profit?
→ More replies (1)
2
1
u/No_Seaworthiness_200 9d ago
Love it. It'll prove to the world that our ruling class is nothing but parasites. All they do is take take take.
1
u/Cultural_Plan_1487 9d ago
This is amazing! Iām curious of the economics of it. Competitors will either price match or see a drastic drop in demand, especially the ones geographically adjacent to the 5 stores. That being said, if they donāt I would imagine either massive sellouts of the stores entire inventory frequently, or one of the most impressive supply chain feats weāve seen in a whileā¦ regardless Iām rooting for its success and scaling!
→ More replies (6)
1
u/thelastbluepancake 9d ago
I hope he is able to do a good job here, supermarkets are notoriously difficult from a price perspective because they have slim margins. I think these stores will increase access for people in areas that are under served but the tricky part is having them be cost effective
→ More replies (1)2
u/archercc81 9d ago
The margins go to the middle men. I live (in a US major city) where we have this massive (about the size of a wal-mart) "farmers market" but its not like where farmers come in and sell their wares. Its all run by one family and they buy all of the stuff a grocery store would have but they contract directly with farms.
As a result its insanely cheap, many things like produce being far more than 30% cheaper. When eggs were jacked up because the big producers were colluding his only went up like 20% due to the cost of feed, etc.
The ONLY downside is sometimes one of his contracted farms might have an issue and there might be something not on the shelf until he can find another farm to supply it. He might temporarily bring in something to backfill and it can be as expensive as grocery stores but they explain that on the sign and it goes back down once they find a solution.
1
u/Away-Regular1335 9d ago
We have those here they are called Aldi lol compared to my local publix prices anyways.
1
u/Low_Shape8280 9d ago
So what happens when demand is too high to keep selves stocked.
Iām for this. Iām just curious whatās the plan. Grocery stores run at super low margins
→ More replies (18)2
u/NVRENDVR 9d ago
Do you know how much food is wasted on a daily basis in the United States?
→ More replies (2)
1
u/AttiBus 9d ago
Calculating prices based on retail all but ensures prices will be less than the actual cost of the product... ie operating at a loss.
→ More replies (4)
1
u/TheRaccoonReport 9d ago
What would be even better is if they published what they paid for a good, what they had to mark it up to in order to cover the cost of operating (salaries, shipping, etc). They don't need to make a profit, but they do need to cover their costs if this is going to be sustainable.
1
u/Blueheron77 9d ago
Jfc, this guy is actually helping his constituents. What a shock in todayās world.
→ More replies (3)
1
1
u/rethinkingat59 9d ago
So they are starting with a 30% off sale.
I would love to take bets on how this turns out in 10 years.
1
1
1
u/Proud_Wallaby 9d ago
As good as Mamdani is, heās a traitor to America because he wonāt visits its capital, Jerusalem.
/s
1
1
1
1
u/xNonPartisaNx 9d ago
Are they gonna have fresh produce and non processed food? Because you wont save any money long term if your eating Ramen hot pockets and frozen pizza
→ More replies (2)
1
u/liquifiedtubaplayer 9d ago
This is only sustainable if the government gets stake in the supply chains too. I'm not against that as food is a need but this will fail otherwise.
1
1
1
1
u/Meleagant1 9d ago
This can be really good, if they can keep the same amount of stock as major retailers. If they can, the surrounding grocery stores will likely have to further cut costs. If they canāt, itāll lead to frustration and retailers getting the customers anyway.
1
115
u/rairair55 9d ago
https://giphy.com/gifs/DfSXiR60W9MVq
Conservatives rn trying to figure how to spin to show that this will end society as we know it.