Concerns Over Municipal Grocery Store Plan
Mayor Zoran Mamdani’s administration hasn’t taken the time to assess how the proposed municipal grocery store initiative might affect local small businesses, as acknowledged by his budget director on Tuesday.
During a City Council hearing, Sherif Soliman, who leads the Mayor’s Office of Management and Budget, faced questions regarding any studies assessing the impact on neighborhood grocery stores.
“We understand the importance of these issues,” Soliman responded, but when City Councilwoman Camilla Hanks (D-Staten Island) pressed him for specifics, he didn’t provide any.
Mamdani’s plan to establish municipal grocery stores in each of the five boroughs has drawn criticism from various local business groups. Many are particularly concerned that small establishments, like mom-and-baby shops, may struggle to compete against the subsidized prices offered at these new stores.
Some business owners have come together, creating a fund of $1 million to contest this initiative, even as the city has already announced two new grocery locations, leaving three more to come.
The mayor argues that this store initiative, which is central to his campaign, aims to help New Yorkers access goods at lower prices and figures the cost to the city at around $70 million.
However, the upcoming Manhattan store is projected to exceed $30 million in expenses, as announced by Mamdani in April.
During a press conference in May, Mamdani claimed his office was engaging with grocery store owners and industry groups for feedback, but those in the grocery sector have countered that they haven’t received any communication from city officials.
Frank Garcia, president of the Multicultural Business Coalition, expressed frustration at this lack of outreach. “I’ve reached out multiple times without any response,” he said, speaking at a recent protest outside City Hall against the city-owned store plan.
The Manhattan store, scheduled to debut in 2029, will encompass 9,000 square feet within La Marqueta, a market located under railroad tracks on Park Avenue in East Harlem.
The first store set to open will be at The Peninsula, a former juvenile detention facility in the Bronx, which is being revamped by the Bronx Economic Development Corporation.
City Hall had previously announced that this expansive 20,000-square-foot facility adjacent to Hunts Point Market, the largest food distribution hub globally, is expected to launch in 2027.
When Hanks pressed Soliman about involving city council members in choosing locations for the remaining three stores, he mentioned that he would refer this matter to another team, stating, “We are happy to take that back to our intergovernmental teams.”
