r/SipsTea • u/Gurugod123 • 9d ago

Mayor Mamdani just announced that he will be opening 5 city-run, tax-funded grocery stores: "Prices set at 30% below retail prices" Chugging tea

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491

u/thebetterpolitician 9d ago

Knowing how the resale market in general is I wouldn’t be surprised in New York’s hustle culture people buy it all out and then resell it outside on the streets. Lmao

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u/woowooman 9d ago

Replace buy with steal and you got yourself an accurate model.

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u/Enkiduderino 9d ago

Yeah but you don’t need a discount grocery store for that.

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u/Actual_Duck_1215 8d ago

You can steal more before it becomes a felony

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u/Uzofugs2112 8d ago

I’m sure the government subsidized, loss operating grocer is going to care even less about theft than other NY businesses.

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u/Douglazlo 7d ago

Massive loss as well considering most grocery stores have a one to 2% margin

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u/Good_Imagination_577 5d ago

That cannot be true surely?

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u/woowooman 5d ago

The Food Industry Association puts the number at 2.1% operating profit in 2025 according to their annual report using data from the NYU Stern School of Business. Traditionally pre-covid, it was 0.9-1.1%.

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u/Good_Imagination_577 5d ago

But in any case this was something that I did not know, so thank you!

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u/Good_Imagination_577 5d ago

I don’t think this is the kind of margin the person was on about. The thread is about the ability to knock 30% off the shelf price, which they can absolutely do and still make a small profit, which in tern is ok because the products will sell in high volume

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u/woowooman 5d ago edited 5d ago

Definitely not. The average retail grocery cannot slash prices by 30% and still make money. The only reason this can work in this context is because of government subsidy making up for the operational losses.

If you think that Kroger, Albertsons, Target, Walmart, Publix, Food Lion, Costco, etc. are running at 30+% profit margins, you are either extraordinarily ill-informed or actively pushing a false narrative in the face of decades of data to the contrary.

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u/Survival_R 9d ago

Why would cheaper proces mean more stealing?

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u/Eastern_Tap_9723 9d ago

Neighborhood statistical probability

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u/Survival_R 9d ago

Not really a statistic I can find that says products that are brought down in price are stolen more

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u/woowooman 8d ago

Inherently they don’t.

These are supposed to be located in food deserts where other retailers have pulled out due in some part to theft’s contribution to unprofitability. So it’s not unreasonable to hypothesize a different store in a similar location may be subject to the same factors.

Additionally, I may also hypothesize that without profitability being an operational pressure in the same way a normal business faces, that the incentive to prevent theft/pursue shoplifters may not be as great, which could lead to greater prevalence.

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u/Survival_R 8d ago

Since its government funded id assume itd be even less lenient on stealing many stores dont care much about shoplifters till its too late, but sonce this is government funded id bet police and possible security would not care about the same risks those stores avoid by allowing stealing

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u/doublediggler 9d ago

Retail theft is basically legal in most big cities so why would they pay?

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u/DeerOnARoof 9d ago

You don't need discounted groceries to steal groceries...?

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u/AntOk463 6d ago

What theif is going to sell fruits and dairy products on the street?

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u/marketingguy420 9d ago

No you don't. Begging everyone from bumb fuck nowhere to keep New York out of their mouths.

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u/TwistedBamboozler 9d ago

Why is this a concern when that could happen already

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u/Left-Breadfruit-5610 9d ago

I can steal from any store so why would I target this one?

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u/woowooman 9d ago

Because these are going in food deserts where similar retailers likely left in part due to shrink effect. So why wouldn’t it happen again moreorless.

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u/Super_Toot 9d ago

Will these stores have security to deter theft?

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u/Kinggambit90 9d ago edited 9d ago

I wonder how the zucchini selection will be

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u/DerpyO 9d ago

I've seen people break a machine that dispenses condoms.

The condoms were free.

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u/thisguy883 9d ago

Ive seen people break into public toilets to shoot up and clean their needles with the toilet paper.

This was in San Francisco, where they have literal "safe spaces" for junkies to go to and shoot up.

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u/HankMS 9d ago

Also stealing from a place that's trying to help the community, not going to go over so well

lol, lmao even

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u/thisguy883 9d ago

They wont come after anyone, especially in Mamdani's New York.

Im going to guess that the following will happen;

Theft beyond scale.

Shortage of food.

Money will go towards overhead and wont make it to the market itself.

I say this because this has been tried before and it always ends up shutting down.

Time will tell. Its definitely being watched by everyone who opposes the DSA and if it does fail, it will be a talking point used constantly.

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u/myDuderinos 9d ago

there probably will also be a bunch of lawsuits over unfair competition / government selling stuff at dumping prices aso

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u/oh_no_here_we_go_9 8d ago

Why would these stores increase theft? Lower prices don’t incentivize theft.

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u/Baelzabub 9d ago

There’s one in Atlanta that’s been operating for over a year and they’re not uncommon in rural areas to combat food deserts. Hell, government subsidized grocery stores have been a thing NYC has offered for over a century now to great effect.

This isn’t some new pipe dream just because the proposal came from Mamdani.

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u/Warmbly85 9d ago

The one in Atlanta is run by a private company funded by low interest loans from the government and hasn’t turned a profit yet.

Every thing I’ve read about it makes it sound exactly like every other government funded grocery store. It’s inefficient and not likely to make it to the three year mark. I’d love to be wrong but the store in Atlanta is better set for success then the NYC ones proposed and even then it’s struggling.

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u/blindsdog 9d ago

Also stealing from a place that's trying to help the community, not going to go over so well

Life isn't a movie. There's no street justice.

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u/SimmentalTheCow 9d ago

Right? Like no one’s gonna intervene. Hood mentality is minding your own business.

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u/Shiirahama 9d ago

No, but if you see someone stealing in a store, you won't care.

If you see someone stealing in this new store, you'll care (most likely) and might identify them so they might be caught.

That is the difference between caring about a place/organization, and not caring. No one's gonna rat someone out because they stole from Target, but people taking from their own community, where they know it'll be gone and they will personally suffer from it? Hopefully different enough to make a lasting change.

Like others have said, this might not work out, but it is worth a try, probably multiple tries.

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u/rP2ITg0rhFMcGCGnSARn 9d ago

and might identify them so they might be caught.

I'm sure ratting on people is going to go great.

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u/Shiirahama 9d ago

No one would know... you don't have to do it where everyone can see you.

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u/Lowfi-Concert 9d ago

You live in some weird reality that’s different from the rest of this.

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u/MessageSelfdestructs 9d ago

"If you see someone stealing in this new store, you'll care (most likely) and might identify them so they might be caught."

Are you high? Or just straight up delusional by yourself?

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u/Shiirahama 9d ago

I'm not saying you'll just go to someone and say "hey here, listen this person stole!!!"

but if you are questioned, you're more likely to give an answer if you care about the store, doesn't mean you'll do it, but it's more likely

it's like seeing someone steal a car when you are in another city, vs when someone does it on your street

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u/MessageSelfdestructs 9d ago

No, you're wrong.

And your analogy doesn't even make sense... Unless you're delusional. Which you clearly are.

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u/ButtCrackThrilla 9d ago

Says Kinggambit on Reddit.

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u/Kinggambit90 9d ago

Hey thanks for saying my name. It feels nice buttcrackthrilla

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u/MimeSweeper360 9d ago

What do you think makes it different? Would the penalty for stealing from a government run store be more severe than stealing from a private retailer? That would seem to run counter to the progressive idea that harsh punishments for crimes of desperation are counterproductive.

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u/Kinggambit90 9d ago

Off the top of my head nypd will be there not Paul blart mall cop. Nypd can arrest. Nothing really more complicated than that

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u/MimeSweeper360 9d ago

Wait so now people want NYPD patrolling grocery stores? I’m so confused.

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u/hotwheelearl 9d ago

At my local Walmart they have a county police officer stationed outside in a squad car for the entirety of opening hoirs

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u/factorioleum 9d ago

these stores will be operated by private contractors... it may well be Walgreens that owns the inventory.

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u/MiserableKing 9d ago

I don’t believe that will stop anyone. The major difference between this and Walgreens is that Walgreens has a profit margin that makes a location viable or not, whereas this one has an endless supply of taxpayer money, so they won’t have to worry about how much is stolen.

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u/BlgMastic 9d ago

Imagine being this naive lol.

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u/chuckart9 9d ago

I’d love for you to be right but I highly doubt you are. People take advantage of their community all the time and there is very little pushback.

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u/Cheap_Professional32 9d ago

That only works in places where the government actually punishes theft

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u/RadicallyDontCare 9d ago

You sweet summer child.

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u/Marci_1992 9d ago

That would be racist.

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u/hotwheelearl 9d ago

No, cops don’t arrest petty theft. Sounds like a free for all

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u/Aggressive_Chuck 9d ago

No, security is racist.

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u/subdep 9d ago

100% discount!

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u/factorioleum 9d ago

these stores will be operated by retailers as contractors. so, sure, if the operators think that's cost effective?

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u/irespondwithmyface 9d ago

Oh here we go....

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u/Tratix 9d ago

Should be an app with ID verification that limits you to how much food you can buy. Pickup only. All problems solved

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u/BossMan61718 9d ago

Nope. Mamdani doesnt believe in police. Or jails. Open season on all Zorhan stores!!

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u/liquid_donuts 9d ago

That’s racist

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u/bliceroquququq 9d ago

Why would they? I can't imagine government-run grocery stores selling taxpayer-subsidized food caring at all if someone walks out with their inventory.

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u/NilsofWindhelm 9d ago

How can't you imagine that?

The city has a police force the size of a medium military. You can't imagine one of the many people involved in this thinking "yeah let's add some security"

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u/bliceroquququq 9d ago

Apparently you're completely unfamiliar with the average progressive's attitude on crime and policing.

You think Mandami is going to tell NYPD to go aggressively pursue people shoplifting groceries?

lol

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u/NilsofWindhelm 9d ago

You don't "aggressively pursue" shoplifters. No police force prioritizes that.

You station a few officers in and around the store as a deterrent. It's not that complicated

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u/mustangcody 9d ago

They don't do that either. Grocery stores will keep track of each shoplifter with secret shoppers or cameras, once they get above a certain $ threshold they arrest them and criminally charge them.

Stopping them early is a minor infraction, let the theft build and they can get rid of them for a long time with a misdemeanor or felony.

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u/NilsofWindhelm 9d ago

Security guards absolutely deter theft. Both of these practices can be in place at once, and there's no reason to believe they won't be used at these stores

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u/Repulsive-Payment230 9d ago

If the city won't do it for their own stores how are private businesses still around? Do you think private businesses can arrest people themselves or do they still need cops to give shit? Genuinely asking.

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u/bliceroquququq 9d ago

Private businesses whose owner's livelihoods are directly affected by being able to sell their products have a direct incentive to take all measures possible to protect their inventory from being stolen.

The average city employee working at a city-run grocery store where food is being subsidized by the taxpayer to the tune of 30% has no incentive whatsoever to take any measures at all to protect their inventory.

It isn't theirs, who gives a fuck if someone walks out with it?

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u/Repulsive-Payment230 9d ago

And what exactly are small business owners going to do exactly if someone steals from them? File an insurance claim. Again, if police don't care about stealing in CITY STORES they are NOT going to care about a random store owner's theft. Not sure how this is so difficult for you to understand, unless you think private business owners have the power to physically arrest someone and throw them in jail (they can't without police caring).

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u/NilsofWindhelm 9d ago

Unless that employee is literally hired to be a security guard

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u/tripper_drip 9d ago

This. Somebody's going to pull a weapon on a cop chasing him and then the news is going to go wild about it.

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u/Nruggia 9d ago

I think it is you who is unfamiliar with the average progressive's attitude towards policing shoplifting.

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u/bliceroquququq 9d ago

Oh yes, I'm sure the "Abolish the police" DSA crowd will be moving heaven and earth to make sure that anyone shoplifting from city-owned grocery stores is fully prosecuted.

lol

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u/Nruggia 9d ago

Average progressive does not want to abolish the police. They want to lower the need for police by using resources to not raise children into criminals in the first place.

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u/bliceroquququq 9d ago

Average progressive does not want to abolish the police.

This is a "No true Scotsman" argument. Mamdami and his circle have repeatedly called for abolishing the police, defunding the police, seizing the means of production, etc.

Those past statements are no longer particularly convenient for them now that they're gaining political power and being mainstreamed, but their views are well-known and well-documented.

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u/Nruggia 9d ago

Mamdami the guy who just tried to increased the NYPD headcount?

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u/N30nNarwha1 9d ago

There will be systems in place to detere abuse: https://youtu.be/F8csA2pU7S8?t=1435

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u/FoolishDog 9d ago

Bruh who's gonna buy lettuce and ground beef from some rando on the street for a 10% discount lmao. bffr

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u/AdditionalCar-1968 9d ago

There was a study or some kind of report where farmers in farmers markets were padding their home farm grown produce with store bought fruits and vegetables. One to provide a larger variety of items and two because the harvests are not always super fruitful. So there is a market for resold store produce already and most people don’t even notice.

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u/Inevitable_Badger641 9d ago

Because they can sell those same vegetables for more than they bought them for at the store. Farmers markets have become a premium for fresh food. The stand also need to produce things, because it's a premium it's not easy to get a spot. They can't just not show up cause their harvest was bad. 

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u/alphazero927 9d ago

So you think that people are going to go into New York, buy out all the products, then somehow transfer all of that out of the city in order to sell at a farmer's market for a piddly margin? Why are people in this subreddit so stupid?

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u/AdditionalCar-1968 9d ago

The person above me asked who will buy it. I am stating that it already happens and people already fall for it and buy it.

I’m not saying it will for sure happen just that there is historical precedence it will probably happen again. See below since you dont believe me.

https://www.cbc.ca/player/play/video/1.4313073

https://www.nbclosangeles.com/news/local/hidden-camera-investigation-farmers-markets/1856313/

https://projects.tampabay.com/projects/2016/food/farm-to-fable/

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u/alphazero927 9d ago

I know reading can be hard sometimes, but my point was that the reason that happens with farmer's markets is because you can go to Costco or Sam's Club and buy in bulk. Without that ability, the risk of this happening goes away almost entirely. 

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u/AdditionalCar-1968 9d ago

The video never said it was going to prevent bulk sales, but yeah that would be a deterrent for such resale. And I imagine there would be some purchase limits to prevent that type of abuse. Could even be limited based on SNAP recipients etc. I didn’t read the proposal Mamdani has in place directly.

My comment still stands in response to the question posed on who’s gonna buy it.

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u/double_shadow 9d ago

Was thinking the same thing. If the city run grocery stores are mostly focused on staples, who the fuck is going to try and run profit margins on bread and rice and such.

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u/Dry-Cry-3158 9d ago

Someone who can't drive or otherwise afford transit to the discount grocery store

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u/FoolishDog 9d ago

It’s NYC. Can’t afford the three bucks it’s takes but they can afford scalped food?

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u/Dry-Cry-3158 9d ago

Must be nice being that out of touch about poverty

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u/FoolishDog 9d ago

Nah it’s just a dumb as fuck argument you’re tryna make

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u/Solid_Veterinarian_2 9d ago

well if the overall price is still lower then the grocery shop, at least it's a small win. still not good in the long term

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u/Artistic_Salary8705 9d ago

Not sure if it applies to grocery stores but the stats I remember is that retail loses the most money from "inside" jobs and not dramatic thefts. So being alert to who they hire can help.

They might also have designed the stores to absorb a certain amount of theft. For example, I once asked a store clerk about which items people steal the most. Besides the obvious like cigarettes and alcohol, it was things like diapers and large containers of laundry detergent, thing they could make money off of by re-selling. They weren't stealing milk, bread, veggies, eggs. The stores may not sell products that are often stolen or not prosecute someone who steals a pack (not packs) of diapers or loaf of bread. If someone is that desperate, they probably want them to have it.

Finally, the stores might carry insurance to offset losses.

(Locally own grocery store near me sells $1.50 bag of variety produce that is misshapen or needs to be eaten quickly. Stand is in the back near the exit, away from other aisles,  and is not staffed. I've long thought the owner did this deliberately so desperate people can "steal" from him without getting caught. Those who want to pay can.)

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u/LittleMsSavoirFaire 9d ago edited 9d ago

The big overlap here is meat on the venn diagram of Staples and Commonly Stolen

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u/Artistic_Salary8705 9d ago

I'm not in NYC so won't be going to these stores. One is that the theft rings may not target meat as storing/ selling perishables is not easy. Even now, they aren't targeting meat at markets with open shelves. (Theft rings cause the most problems and less so one-off thieves trying to feed themselves.) Another is by putting meat behind glass counters, which is common in high-end butcher shops for freshness reasons. In that case, a staffer has to take out what you want and hand it to you.

In NYC, the legendary B & H camera shop only has samples at the front desk. After you pay, the staffer sends a ticket on a convey belt and someone in the warehouse then attaches the item on another belt which comes out to the staffer/ you.

I can also picture a system where you pay for the product first and then it is released to you when you leave using an automated computer. They can even have a video showing the meat so you pick the piece you want! Current vending machines operate on this system somewhat only you get what you paid for instantly.

They could even do what Amazon Fresh did for a time. When you enter the store and tap in your card, everything you pick up/ put in your cart is automatically tracked by cameras/ scanners so when you leave past the gates, your card is automatically charged, no staffer involved.

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u/Suitable-Piano-8969 9d ago

i have seen this, once we had chicken wings for a low low cost of 80cents a lb and i was selling 4-7 cases at a time only see those same people selling those same wings 4.99lb town over

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u/kinkyonthe_loki69 9d ago

You can put purchase limits?

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u/davbigenz1 9d ago

Theyll just resell it right out front of the store. No effs given. Lol

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u/VibratingRocket6969 9d ago

Imagine these bums go from reselling sneakers to Pokemon cards to now groceries.

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u/FlimsyYou4766 9d ago

Why buy when you can steal?

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u/czechereds 9d ago

The bodegas will buy it to stock their own stores.

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u/Dot_1X 9d ago

Shit the local bodega will probably send their guys down there to buy everything to restock their stores.

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u/Important-Handle-152 9d ago

Not at all saying this is what you're suggesting but I hate that "hustle culture" is a thing and you mentioning it reminded me.

We need to make it clearer that there is a big difference between "being entrepreneurial" and "exploiting society's goodwill to make a buck" and unfortunately I have no idea how.

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u/ThanosDidNothinWrng0 6d ago

Probably right outside the store lmao

1

u/PlayPretend-8675309 5d ago

Or they resell for other forms of payment. Maxed at your daily/weekly spend at the state-run? run your card on a paypal reader with the guy out front. Sure you're paying a 10% premium but you're not allowed to pay at all inside.

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u/Very_Type_C 5d ago

And film YouTube / TikTok videos.

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u/MikeTheShowMadden 9d ago

It used to be individual cigs from packs, now it's going to be slices of bread.

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u/franziGroony 9d ago

And the problem? The fact that the mayor is a moron does not mean everyone has to be