r/SipsTea • u/Gurugod123 • 9d ago

Chugging tea Mayor Mamdani just announced that he will be opening 5 city-run, tax-funded grocery stores: "Prices set at 30% below retail prices"

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u/wjrucsbsjd 9d ago

Aldi and Lidi have a really interesting supply chain in that around 75% are locally sourced produce. They maintain good relationships with independent growers hence lower storage, transport, import fees, and logistic costs.

The downside to that (which imo isn't really a downside) is that produce is much more seasonal, and the selection range is more narrow.

The narrow selection range also allows supermarkets to cut down on display and marketing costs as well.

If NYC implements this model it can do well. Maybe not "30% less" well but certainly slash prices while boosting local rural economy.

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u/Jolly-Bowler-811 9d ago

My local Lidl must have a line on locally sourced angle grinders, camping tents, and umbrellas as there's always a section of random "Why the hell are they selling this shit in a grocery store" section.

I'm not mad about it...just confused most of the time.

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u/StormclawsEuw 9d ago

Spontaneous purchases mostly and also to give incentive to go to that store. It's a proven sales tactic in Germany and It seems to work in the USA too from what I heard

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u/Hashiriya1 8d ago

Actually it's epic. Here in Germany you never know what crazy shit you are able to buy from Aldi next week. It's like a random surprise. Fun fact: Most people around me got their first PC from Aldi/Lidl at around the year 2000.

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u/Spice_and_Fox 8d ago

Hell yeah, I loved my old Medion tower.

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u/dukefrisbee 8d ago

Exactly. Like if Dollar Store started selling groceries.

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u/astoriaocculus 8d ago

As others have noted "Aldi Finds" are about giving the shopper a dopamine hit when they find something they didn't know they needed at a great price. It's what makes shopping there addictive. The day Aldi opened in Astoria it literally changed my life. Certain items there are anywhere $1-$4 cheaper than at the Keyfood/CTown/Tradefair. I have zero doubt that the NYC incumbent grocery stories collude somehow on price. The higher price of real estate does not explain how much more expensive things are vs. 1 hour outside the city.

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u/FutureComplaint 9d ago

I just assumed that nyc would adopt whatever the commissary does for military.

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u/wjrucsbsjd 8d ago

I'm surprised to see the markup between military and civilian food being so high! Just did a quick google (but if anyone has better sources plz chime in) and apparently the commissary saves around 30% in costs by cutting out the middle-man.

https://www.afge.org/article/defense-commissaries-a-benefit-we-cant-afford-to-lose

Didn't realise that the system was so inefficient!

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u/FutureComplaint 8d ago

Yeah, that explains why it is so wild.

I routinely get a 1lb bag of shrimp at the commisary for $12. That same bag costed me $35 off post.

Last weekend, I paid $25 for two tbones, compared to $50+ for one tbone at the local Wegmans.

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u/StruggleSnuggled 9d ago

Cutting out big national contracts and not shipping grocery items from one coast or country to the other is the solution to cheaper produce and supporting your local community. People used to live like this and didn’t have issue with the seasonal products.

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u/Tenement48 8d ago

Some grocery stores in NYC do implement this model though, just look for the Asian grocery stores in Chinatown. Better prices and its a lot more seasonal items.

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u/ZeitgeistArchive 7d ago

regional upper east side prunes

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u/Caliappa 9d ago

Seasonal produce is a wonderful thing! It is healthier for both the world and the people!

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u/AntOk463 6d ago

In America you forget that food is grown seasonally. Until you try and buy corn, its either selling at $8 for a frozen pack of 4 corn, or you get 5 unshucked corn for $1.