In the New York City mayoral election, Democratic candidate Joran Mamdani is facing intensifying controversy over his main campaign promise to introduce public grocery stores. The aim is to lower the prices of essentials by establishing grocery stores operated directly by the city and to guarantee low-income residents' choice, but opinions are divided on the feasibility of the policy.
According to the Washington Post (WP) on the 15th (local time), Mamdani announced plans to establish municipal grocery stores in each of New York City's five boroughs, launching a pilot program with a total investment of $60 million (approximately 83.1 billion won). He specifically plans to set up stores in low-income areas to address food access gaps known as "Food Deserts" and supply fresh food at wholesale prices.
The foundation for this promise lies in New York City's high grocery prices. New York is one of the cities with the highest food prices in the United States, and currently, it is estimated that over 1.5 million New Yorkers are experiencing food insecurity. Nevin Cohen, a professor at the City University of New York's Urban Food Policy Institute, noted, "More than half of households with children are in a state of food insecurity," and stated that "cheaper and healthier food must be supplied to New York."
In fact, public grocery stores are not a completely new concept. Some rural areas and small towns have operated municipal stores, and the governments of Madison and Atlanta are also pursuing similar policies. Since the 1930s, New York City has also leased inexpensive spaces to some merchants through its "public market" system, utilizing public subsidies.
However, concerns are emerging that it would be realistically impossible for the city to fully own and operate the stores, beyond just providing subsidies or tax incentives. Unlike private distributors with nationwide chain networks, municipal stores struggle to achieve economies of scale, making it difficult to compete on price. Ouryouan Colón Ramos, a professor at George Washington University, explained, "Warehouse-style stores and large distribution chains can lower supply prices through bulk purchases, but public stores lack the capacity to reduce prices."
The initial investment and operational burden are also significant. Significant fixed costs such as refrigeration and freezing equipment, labor costs, and inventory management could take years to reach the break-even point. Real Carver, a professor at Kansas State University, stated, "Grocery distribution has a high-cost, low-margin structure, making it a business that private entities are reluctant to enter," and emphasized that "public stores must be even more cautious." In fact, in Florida's Baldwin, there is a case where a municipal grocery store, operated for five years, was forced to close due to competition from a nearby Walmart.
Political backlash is also spreading. Eric Adams, the incumbent mayor running for re-election as an independent, pointed out in an interview with Fox News that Mamdani's promise is "not the right thing to do," stating that it could threaten the survival of small grocery stores and markets in the area. Some believe that past policies directly related to citizens' lives have often been thwarted by strong backlash, leading to speculation that Mamdani's promise will also be difficult to realize.
Meanwhile, Mamdani is focusing on New York's working class with radical promises such as freezing apartment rents, raising the minimum wage, free buses, and free childcare. In response, President Trump stated, "I will not let a communist lunatic destroy New York," expressing strong criticism.