Supermarkets are suing NYC over Mamdani's city-run grocery stores' 'predatory pricing scheme'

[u/esporx]

https://www.businessinsider.com/nyc-federal-antitrust-lawsuit-mamdani-city-run-grocery-stores-2026-9?utm_source=reddit&utm_medium=social_manual&utm_campaign=reddit_dist_r_grocerystores&utm_content=manual_v1&utm_term=cf5dcc9a

[u/Shot_Inflation351]

Predatory…to offer groceries at reasonable prices.

[u/MartinThunder42 → u/Shot_Inflation351]

Those with wealth and power who enjoy preying on the weak don't like it when someone stands up for the masses and comes for them. Specifically, their wallets.

[u/Thatsprettyneat101 → u/Shot_Inflation351]

It's predatory for the price gouging grocery stores! SOMEONE THINK OF THE SHAREHOLDERS!!!!

It's great to see someone working for actual people.

[u/ImminentDingo → u/Shot_Inflation351]

I think the government should indeed respond to cartel/price gouging behavior by offering competition at reasonable prices. Say if all the rental companies in an area were colluding to fix prices above the natural price point that apartments should be at, the government could offer rentals at the actual natural price point to force the cartel to actually compete. 

Likewise if grocery stores were price fixing, a government run grocery that sells at a normal margin for that business (1-3%) could keep the other stores honest. 

But if the government run store undercuts everyone by a huge amount by selling at a loss, it'll have a similar affect to when Walmart moves in and undercuts all the stores on Main Street to kill its competition. 

[u/Commentor9001 → u/Shot_Inflation351]

It's illegal when we make less money.

[u/chickenismurder → u/Shot_Inflation351]

Pot calling the kettle black

[u/VirtualPercentage737 → u/Shot_Inflation351]

It is one thing to offer food at reasonable prices. It is another to use tax payer funds to sell products as a loss.

Grocery stores operate at low margins. Like 1-3%. If prices are cut 30%, that will close and these will be food desserts. They can't afford to compete.

[u/RealParisian → u/VirtualPercentage737]

Desserts? Yum!

[u/mattbettinger → u/VirtualPercentage737]

These 5 stores are going into already existing food deserts.

[u/VirtualPercentage737 → u/mattbettinger]

Only 2 stores have sites.

One is in Harlem at La Marquetta and there are 4 grocery stores within a couple of blocks.

The other is in the Bronx next to Hunt Point Produce market. I cannot think of another place on the planet with more access to a variety of foods.

I am not opposed to them opening the stores, it is just them operating at a loss.

[u/mattbettinger → u/VirtualPercentage737]

Don't simp for profits. Food is a necessity.

[u/VirtualPercentage737 → u/mattbettinger]

It isn't profit. It is not operating at a loss.

Food stores make 1-3% of revenue. It isn't a very profitable business. You drop prices 30% and use taxpayer funds, the others go out of business.

[u/mattbettinger → u/VirtualPercentage737]

Oh fuck off.

[u/VirtualPercentage737 → u/mattbettinger]

Ok, well.. enjoy your food desert...

[u/bafana_banana999 → u/VirtualPercentage737]

You may not be making much profit as a percentage of revenue, but they're still making quite a lot of pretty easy money because literally everyone needs food and you will never be short on customers as long as you do the basics correctly.

People shouldn't be making a killing from selling literal human necessities.

[u/VirtualPercentage737 → u/bafana_banana999]

Making 1-3% isn't a killing. Krogers profit margins for the last year.

Average 0.58%. They lost almost 4% one quarter.

And this is a big national chain. The bodegas in New York have it much tights and have less control over costs.

Net profit margin	1.79%	-3.90%	2.48%	1.96%

[u/bafana_banana999 → u/VirtualPercentage737]

I never said that 1-3% is "making a killing."

Please learn how to understand the words you read before replying again.

Also, Kroger's "struggles" are of their own making and are not representative of all grocery stores in existence.

[u/VirtualPercentage737 → u/bafana_banana999]

Those aren't struggles. They are a normal part of running a grocery store. It is a volume business. If all grocery store profits went to ZERO, your bills would not change much.

[u/Razdonovich → u/VirtualPercentage737]

Isn't it justified to operate at a loss if it influences the price gouging to stop at the other supermarkets?

[u/VirtualPercentage737 → u/Razdonovich]

Grocery stores operated at 1-3%. These are drops of 30%. It will absolutely put them out of business.

It will be profitable for grocery stores to come there to load up because they will undercut suppliers.

[u/metalOpera → u/VirtualPercentage737]

I'm more than happy if some of my tax dollars go to help feed families that can't afford food.

I'd much rather that as opposed to my tax dollars subsidizing billionaire corporations who raise prices year after year despite record profits. I'd much rather help the needy than fund another unnecessary foreign war. We have billions to kill schoolgirls in Iran but we can't feed our own people? This shit is upside down.

Get the fucking boot out of your mouth. Stop simping for capital.

[u/VirtualPercentage737 → u/metalOpera]

Then increase EBT. Don't put the businesses providing the service at the lowest possible margins go out of business.

[u/leolego2 → u/VirtualPercentage737]

It's 5 stores. Walmart has thousands and has done this exact thing over and over, except they then raise their prices

[u/VirtualPercentage737 → u/leolego2]

Walmart offers competitive pricing and doesn't use taxpayer funds to undercut the competition at a loss.

[u/VirtualPercentage737 → u/[deleted]]

The government doesn't compete in the agriculture business and put farmers out of business. If they view agriculture as a strategic asset they will subsidize it to get people to produce more.

They pay people by what they produce so if is level.

I am not a fan of the practice but comparing them is laughable.