The Indicator from Planet Money · Friday, July 31, 2026
New York City Mayor Eric Adams has announced plans for government-subsidized grocery stores aimed at providing a 30% discount on a core set of groceries. The city will fund the land and building costs, while private companies will manage daily operations, seeking to offset the discount for participating businesses. This initiative has drawn attention due to potential arbitrage issues, with officials considering measures like a customer card system to monitor bulk purchases.
“30 was the percent discount that a core set of groceries would have to be priced at at these supermarkets.”
“So, I guess the idea here is that this would compensate the businesses for selling those core goods at a 30% discount.”
“if you're selling eggs and milk and bread at 30% below the market price, some entrepreneurial people are going to want to take those eggs and that milk and that bread and sell it elsewhere for a roughly 30% profit.”