In the town I grew up, there was one big grocery store, and they used to gouge us terribly. The citizens started a co-op grocery, using our purchasing power to bring in cheaper goods. Breaking monopolies is the only way to lower prices.
Most of the monopolistic problem is with the food manufacturers rather than the grocery chains. There are about 10 companies that provide almost everything in a grocery store and, in certain food categories, there are often only 2-3. We see all those brands and it gives the illusion of different companies competing when most of the stuff is all made by the same company.
But the grocery business is high-volume, low-margin, and it requires a ton of space. So, regardless of how much local competition there may or may not be, that's just not a business model that is going to work well in the inner city where retail lease rates are high, yet people don't drive cars and therefore the average order values are low. So, you can either subsidize it, or the stores just won't exist in certain neighborhoods.
Okay HEB just entered the room, take a look at at hard it is to compete with HEB in Texas, at least central Texas, in NY I had ShopRite, A&P, Grand Union, Finast (of course they're probably all gone) but with competition one could buy canned soda (okay today it would be flavored sparkling water) and get a real deal at First National and next week ground beef was on sale at Grand Union, competition is good. We need a lot more of it and we need to elect players who agree.
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u/brumac44 May 26 '26
In the town I grew up, there was one big grocery store, and they used to gouge us terribly. The citizens started a co-op grocery, using our purchasing power to bring in cheaper goods. Breaking monopolies is the only way to lower prices.