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JAY GOLDBERG: Public grocery stores a financial trainwreck in the making

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The idea of getting government into the grocery store business seems to be gaining traction among left-wing politicians across North America. New York Mayor Zohran Mamdani, Toronto city council, and federal NDP Leader Avi Lewis have all embraced the idea as a means of tackling today’s food affordability crisis.

Back in March, Toronto city council voted overwhelmingly to pilot four municipally operated grocery stores. The vote went ahead without councillors releasing a cost estimate or feasibility study to the public. At the same time, Lewis claims a national network of government-run grocery stores could save consumers between 30% and 40% on their grocery bills.

JAY GOLDBERG: Public grocery stores a financial trainwreck in the making  Back to video

But is that true or just wishful thinking?

Higher costs to customers inevitable

According to the Montreal Economic Institute, retail grocery profit margins are between 3% and 5% on food items. That means, even if government-run grocery stores could eliminate that profit........

© Edmonton Sun