Government-run grocery stores face renewed scrutiny after Chicago’s experiment fizzles

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Government-run grocery stores face renewed scrutiny after Chicago’s experiment fizzles

Fox News · 3 hours ago

Chicago has abandoned its plans for government-run grocery stores after Save A Lot, a discount grocery chain, collapsed, reviving scrutiny of similar publicly backed retail schemes elsewhere in the United States. The proposal had been championed as a way to tackle "food deserts", areas where residents lack easy access to affordable, fresh groceries, but critics argue such interventions fail to address the underlying reasons supermarkets struggle to operate profitably in these areas.

Rob Carr, president and chief executive of the Illinois Retail Merchants Association, said government-backed grocery stores are "inherently flawed" and will not solve the food desert problem. He argued that cities should instead focus on reducing barriers such as permitting requirements, taxes and labour costs, which he said make it difficult for supermarkets to remain viable in underserved neighbourhoods, rather than having local authorities attempt to run stores themselves.

  • Chicago drops plan for government-run grocery stores after Save A Lot's collapse
  • Retail industry figure calls the model "inherently flawed"
  • Critics urge tackling permitting, tax and labour costs instead

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