A coalition of New York City independent grocers is suing Mayor Zohran Mamdani over his plan to establish city-run grocery stores across all five boroughs. The grocers contend that these taxpayer-funded competitors, designed to offer prices approximately 30% lower than existing retailers, pose an existential threat to their businesses.
Josefina Aguirre, a first-generation American whose family has operated a Spanish Harlem meat market for nearly 30 years, is among those challenging the initiative. Aguirre stated that the prospect of competing with a government-backed store, particularly one slated to open just two blocks from her family's business, is deeply concerning. The proposed location at La Marqueta, an existing public market, is expected to cost the city approximately $30 million to develop.
"When we heard Mamdani was opening a grocery store where people are gonna save 30% it scares us because we don't have the money to compete," Aguirre said. "I mean, we are New Yorkers, we're not scared of competition, we never have been, but when you have a grocery store coming in like this, it could take us out of business."
Mamdani has committed $70 million to opening five municipal grocery stores, one in each borough, as part of his agenda to combat rising food costs. His office has argued that operating on city-owned property, free from rent and property taxes, will enable these stores to offer lower prices. However, independent grocers argue these advantages create an uneven playing field.
For owners like Aguirre, the stakes are personal. Her family's business, Little Mexico, has weathered economic challenges including the COVID-19 pandemic, rising rents, and competition from big-box retailers. "I pay my mortgage from here. I pay for my kid's tuition. This is what I've been doing for over 30 years. Do I need to start over in a new career?" Aguirre questioned.
The lawsuit filed by the grocers argues that using public funds to create direct competitors to private businesses is an unsustainable model that could lead to the closure of long-standing neighborhood establishments. The future of businesses like Little Mexico, Aguirre said, hinges on the outcome of this legal challenge. "So what will happen next? The next thing would be closing our business and we don't want to close, we've been here for years," she added. Mamdani's office did not immediately respond to requests for comment.