New York City Mayor Zohran Mamdani has announced that five planned city-owned grocery stores will offer a core basket of essential items at prices 30% below typical retail levels, as his administration moves forward with a campaign promise aimed at reducing grocery costs for working New Yorkers.
The pricing plan, announced Monday, covers everyday staples including produce, meat and seafood, bread, dairy products, pasta, rice, beans and other essential food items. Other products sold at the stores will be offered at market prices rather than the discounted rate.
The city’s Economic Development Corporation estimates that the discount could save shoppers about $90 a month, or close to $1,000 a year, for the core basket of goods.
Mamdani said the discounted prices would remain in place throughout each month rather than changing from week to week.
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“Once a month, our five city run grocery stores will set prices for this core set of goods at 30% below typical retail prices. No exceptions, no gimmicks. The savings will last for the entire month. That means no weekly fluctuations nor sticker shock at the checkout line,” Mamdani said, according to local reporting.
The city is currently identifying locations for three additional community grocery stores, with the broader plan calling for one store in each of the city’s five boroughs. La Marqueta in East Harlem has been identified as one location, while another is planned for Hunts Point in the Bronx. The stores are expected to open in phases, with the first location planned for 2027 and the East Harlem store expected by 2029.
Under the model, the city will own the land or lease the space and cover construction or renovation costs. Private contractors will manage day-to-day operations, while the city will use its financial support to help keep prices lower for consumers.
The plan has attracted criticism from some private grocery operators and small business owners who fear that publicly supported stores could put pressure on privately owned markets, particularly bodegas and neighborhood grocery stores.
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Mamdani’s administration has defended the plan as an effort to address New York City’s high cost of living and make basic food more affordable. The mayor has made affordability a central focus of his administration, arguing that government can play a role in reducing household expenses.
For now, the administration is moving ahead with the process of selecting operators and finalizing locations as it works toward opening the five stores across New York City’s boroughs.