New York City Mayor Zohran Mamdani’s proposal to establish government-owned grocery stores has come under fresh scrutiny after officials revealed the outlets may not offer the same range of products as conventional supermarkets.
During a board meeting on Thursday, the New York City Economic Development Corporation (EDC), which is overseeing the initiative, disclosed that the planned stores are unlikely to feature services such as butcher sections or hot food counters.
“It may not have all the items, but it’s going to be like a typical grocery store,” said Jeanny Pak, the EDC’s interim chief executive.
Pak also clarified that only selected essential goods would be sold at reduced prices, rather than across-the-board discounts.
“We did a lot of analysis of what people buy in terms of their everyday goods,” she said. “Even if there are a lot of people who buy soda, we’re not discounting soda.”
The city intends to establish five publicly owned grocery stores, a project expected to cost taxpayers more than $70 million.
Following the announcement, the proposal drew criticism and ridicule on social media, with some users questioning its practicality.
“OMG, this is just destined to fail,” one X user wrote. “Anyone with experience with a grocery store there? This is just such a bad idea.”
Another user compared the concept to an existing supermarket chain, writing, “This is a Trader Joe’s, basically.”
During his election campaign, Mamdani pledged to open one city-owned grocery store in each of New York City’s five boroughs, arguing that government intervention could help reduce food prices.
“At our stores, eggs will be cheaper. Bread will be cheaper. Grocery shopping will no longer be an unsolvable equation,” he had said.
However, nearly eight months into his administration, only two of the proposed locations have been confirmed, with the first outlet not expected to open until 2027.
The project has also raised concerns among private grocery operators and industry stakeholders, who fear subsidised pricing could undermine nearby independent businesses.
“What effort has been made to help other stores in general?” asked Adam Friedman, an urban planner and EDC board member, during Thursday’s meeting.
“That’s the issue that I think a number of us were getting at — how is its impact on competition? All these businesses are trying to do right,” he later told NY1.
The concerns were also raised during a recent television interview with Gustavo Gordillo, co-chair of the Democratic Socialists of America’s New York City chapter, the political organisation with which Mamdani is affiliated.
“If the government opened a big grocery store next to your bodega, what would you do?” Fox News host Martha MacCallum asked.
“If one publicly owned grocery store that brings prices down in the neighborhood is enough to put someone out of business — maybe they shouldn’t have been in that business in the first place,” Gordillo replied.
Mamdani has maintained that while a basket of staple items will be offered at discounted prices, other products will continue to be sold at market rates.
This week, the mayor also announced the appointment of veteran public official Anthony Shorris as the new chief executive of the EDC, while former Federal Trade Commission chair Lina Khan will serve as chair of the agency.
According to current plans, the first grocery store will open in Hunts Point in the South Bronx in 2027, with a second outlet expected to launch in East Harlem’s La Marqueta marketplace in 2029.
