Zohran Mamdani’s Government-Run Grocery Stores Won’t Lower Prices
Andrew Cuomo has conceded defeat to 33-year-old progressive upstart Zohran Mamdani in New York City’s Democratic mayoral primary. With registered Democrats making up over two-thirds of the city’s electorate, Mamdani is in pole position to be the Big Apple’s next mayor, which could spell trouble for New Yorkers struggling with the city’s nation-leading cost of living.
The campaign website of Mamdani, who self-identifies as a democratic socialist, says that he is running “to lower the cost of living for working class New Yorkers.” In addition to offering free bus fare citywide, Mamdani is proposing to rein in “out of control” prices with “a network of city-owned grocery stores focused on keeping prices low, not making a profit.” Mamdani argues that “without having to pay rent or property taxes, they will reduce overhead and pass on savings to shoppers.”
If lowering the price of groceries is Mamdani’s goal, his “public option” is a poor way to accomplish this feat, especially given the structure of the city’s grocery market.
The grocery market, which includes bodegas, grocery stores, supermarkets, and online grocery delivery (like Amazon, Walmart, and ShopRite), is incredibly competitive in New York City, and its market concentration is extremely low. Based on 2016 market share data (the most recent year data are available) from Chain Store Guide, a provider of retail and foodservice intelligence, the New York metropolitan area’s grocery market has a Herfinda
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